The Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) is a new entrant into the "robotics" space. The two-month-old fund competes with the much larger ROBO Global Robotics and Automation Index ETF (ROBO), and attempts to differentiate itself with an artificial intelligence angle.
Global X anticipates that robotics and artificial intelligence technologies can help offset the problem of a shrinking labor force in many developed countries. Industries that BOTZ attempts to provide exposure to include agriculture robots, home robots, artificial intelligence analytics, autonomous cars and bionics, among others.
Currently, the three largest holdings of the fund are SMC, Fanuc and Mitsubishi Electric. BOTZ has a 0.68% expense ratio and is up 2.2% since inception.
Internet Of Things
One of the biggest buzzwords in tech right now is "internet of things." Many see this idea of connecting everyday objects to the internet becoming a reality in the not-too-distant future.
The Global X Internet of Things Thematic ETF (SNSR), launched in September, attempts to capitalize on this potential revolution in technology. SNSR invests in companies that are involved in the "development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet."
STMicroelectronics, Skyworks Solutions and Garmin are three of SNSR's largest holdings. The fund has a 0.68% ratio and is down 0.8% since inception.
Growing List Of Thematic ETFs
The aforementioned ETFs are only a sampling of the growing list of new tech ETFs on the market. Others include the PureFunds ISE Cyber Security ETF (HACK); the First Trust ISE Cloud Computing Index Fund (SKYY); the ARK Genomic Revolution Multi-Sector ETF (ARKG); and the iShares Exponential Technologies ETF (XT).
As always, investors should check under the hood to see what kind of exposure each fund truly provides; a catchy theme shouldn't be the sole reason to buy an ETF. Fund reports for every ETF can be found at www.etf.com/ETF ticker (such as www.etf.com/SPY).
Contact Sumit Roy at [email protected].