Tags: robotics | AI | investing | ETF

Robot ETFs Give Investors Chance to Own Next Technology Wave

Robot ETFs Give Investors Chance to Own Next Technology Wave

(Dreamstime)

Wednesday, 15 February 2017 01:52 PM

Technological leaps in robotics and artificial intelligence will change the way people live and work, and two exchange-traded funds may help to make money along the way.

The Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) and the Robo-Stox Global Robotics and Automation Index ETF (ROBO) hold companies that are developing the technologies of tomorrow while producing gains today. The Robo-Stox fund is up 47 percent in the past year.

“Despite targeting similar themes, the make-up of the two ETFs could not be any more different,” writes analyst Steve Augur in a Seeking Alpha blog. “ROBO holds 85 stocks and is tilted towards mid- and small-cap stocks, while BOTZ has 28 stock holdings with a bias towards giant to mid-cap stocks.”

Companies owned by Global X Robotics but not Robo-Stox include these four, Augur says:

Kuka AG (KUKAF), Kuka AG ADR (KUKAY): “KUKA is a German company that manufactures industrial robots and factory automation solutions. The company was founded in 1989 and built its first robot back in 1973.”

Qinetiq Group Plc. ADR (QNTQY): “Qinetiq is a British multinational defense technology company that offers a wide range of products and services including robots used to remotely locate and disable roadside bombs, and a solar powered unmanned aerial vehicle.”

Cyberdyne Inc. ADR (CYBQY): “Cyberdyne is a Japanese robotics and technology company, noted for the HAL 5 robotic exoskeleton suit, which they claim augments body movement and increases user strength by up to ten times.”

TransEnterix Inc. (TRXC): “TransEnterix is a medical device company that is pioneering the use of robotics to improve minimally invasive surgery. I don't want to be crude, but this is one medical device company that may die on the operating table.”

Meanwhile, President Donald Trump has taken steps to loosen crisis-era regulations on financial advisers, who may face an even bigger threat from new technologies that help people with investing.

“Bots are squeezing their flesh-and-blood competition and threatening the jobs of thousands of human brokers in the $20 trillion U.S. wealth management business,”reports the New York Post, citing data from research firm Spectrum. “Nearly one in three investors says these machines are superior at picking stocks and lessen their risk, and almost as many say the machines are better at selecting investments for retirement than human brokers.”

The millennial generation that has been entering the workforce for the past 15 years is more comfortable using technology to make investment decisions.

“Rookie investors — many of them millennials — are more often using robo-advisers than human ones,” the NY Post reports. “Robo-advisory, less than a decade old, may expand much faster than experts originally forecast.”

The growth of robo-advisers pushed traditional asset managers to cut fees and develop new technologies.

“We’re hiring from the competition at Fidelity, Vanguard and Schwab, and training some of our own experts,” said Jon Stein, CEO of New York-based Betterment, the largest independent robo-adviser, with $7 billion in assets under management and a staff of 220, told the NY Post.

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StreetTalk
Technological leaps in robotics and artificial intelligence will change the way people live and work, and two exchange-traded funds may help to make money along the way.
robotics, AI, investing, ETF
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2017-52-15
Wednesday, 15 February 2017 01:52 PM
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