Digitization and the industry 4.0 revolution have boosted the growth of automation and robotics across industries. With the use of robotics technology expected to garner further traction in the coming years, investors could benefit from investing in ETFs that are investing in robotic technology, such as Global X Robotics & Artificial Intelligence ETF (BOTZ), Robo Global Robotics and Automation Index ETF (ROBO), and Robo Global Artificial Intelligence ETF (THNQ).
Let’s discuss the prospects of the robotics industry.
Amid the increasing need for efficient production, predominantly in manufacturing automobiles, electronics, and packaged food, among others, industries are adopting innovative and automated solutions. This shift in manufacturing and production allows enterprises to complete processes in shorter timelines without significant human intervention and errors.
Robotics technology is helping maintain the quality of products by performing tasks with a high degree of precision and accuracy. Also, it is assisting companies in achieving operational efficiency by reducing dependence on labor. It also helps in saving on labor costs.
Thanks to this increased adoption of robotics, the sector is well-positioned for growth. The global industrial robotics market is expected to reach $60.56 billion by 2030, expanding at a CAGR of 10.5%.
Given this backdrop, investors could benefit from investing in robotic ETFs BOTZ, ROBO, and THNQ.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
BOTZ is an exchange-traded fund launched and managed by Global X Management Company LLC. The fund seeks to track the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index.
BOTZ has $1.69 billion in assets under management (AUM). Its major holdings include Intuitive Surgical, Inc. (ISRG) with a 10.01% weighting, followed by NVIDIA Corporation (NVDA) at 9.05%, and ABB Ltd. (ABBN) at 8.21%. It currently has 46 holdings in total.
Over the past three months, the ETFs fund flow has been $105.21 million. Its NAV is $24.82. Over the past six months, the fund has gained 30.8% to close the last trading session at $24.78.
BOTZ’s POWR Ratings reflect this promising outlook. The ETF has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
BOTZ has an A for Trade, Buy & Hold, and Peer grade. Of the 118 ETFs in the B-rated Technology Equities ETFs group, BOTZ is ranked #9. Click here to access all BOTZ’s ratings.
Robo Global Robotics and Automation Index ETF (ROBO)
ROBO is an exchange-traded fund launched and managed by Exchange Traded Concepts, LLC. The fund invests in stocks of companies operating across information technology, software and services, software, systems software, automation products and services, and the robotic sector. It seeks to track the performance of the ROBO Global Robotics and Automation Index.
ROBO has an AUM of $1.34 billion. Its major holdings include Intuitive Surgical, Inc. (ISRG), with a 2.31% weighting in the fund, followed by Kardex Holding AG (KARN) at 1.96%, and Azenta, Inc. (AZTA) at 1.71%. It currently has 80 holdings in total. Also, its NAV was $53.48.
ROBO has seen net inflows of $19.16 thousand over the past five days. Over the past six months, ROBO has gained 23.5% to close the last trading session at $53.01.
It’s no surprise that ROBO has an overall A rating, equating to Strong Buy in our proprietary POWR Ratings system.
ROBO has an A for Trade, Buy & Hold, and Peer grade. Within the same group, ROBO is ranked #10. To see all the ROBO ratings, click here.
Robo Global Artificial Intelligence ETF (THNQ)
THNQ is an exchange traded fund launched and managed by Exchange Traded Concepts, LLC. It invests in stocks of companies operating across information technology, software and services, software, systems software, software research, and artificial intelligence software sectors. The fund seeks to track the performance of the ROBO Global Artificial Intelligence Index.
With a $25 million AUM, THNQ’s major holdings include Microsoft Corporation (MSFT), with a 2.20% weighting in the fund, followed by NVIDIA Corporation (NVDA) at 2.09% and Alphabet Inc. (GOOGL) at 2.11%. It currently has 71 holdings in total. Its NAV was $30.24.
Over the past month, the ETFs fund flow has been $766.49 thousand. Over the past six months, the fund has gained 18.1% to close the last trading session at $29.73.
THNQ’s POWR Ratings reflect solid prospects. It has an overall rating of B, equating to Buy in our proprietary rating system.
In addition, THNQ has a B for Trade and Buy & Hold grades. In the Technology Equities ETFs group, THNQ is ranked #48.
Beyond what we stated above, we have also given THNQ a grade for Peer. Get all THNQ ratings here.
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BOTZ shares were trading at $24.88 per share on Wednesday morning, up $0.10 (+0.40%). Year-to-date, BOTZ has gained 21.07%, versus a 8.14% rise in the benchmark S&P 500 index during the same period.
About the Author: Malaika Alphonsus
Malaika's passion for writing and interest in financial markets led her to pursue a career in investment research. With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions.
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