The recent release of ChatGPT has caused a huge buzz around AI. This is reflected in the increased investment into AI technology. AI has a huge potential. It would be smart to invest in AI ETFs Global X Robotics & Artificial Intelligence(BOTZ), ROBO Global Robotics & Automaton (IRBO), or iShares Robotics(IRBO) to make significant gains. Continue reading ....
AI is a technology that has become popular and intelligently restructures the operational flow of businesses in various industries. Due to the immense potential of AI applications for businesses and consumers, they are increasing their AI investment and adoption.
For potential returns, given the industry's rosy prospects, you may want to consider investing in AI ETFs such as Global X Robotics & Artificial Intelligence ETF(BOTZ), ROBO Global Robotics & Automation Index ETF(ROBO), and iShares Robotics & Artificial Intelligence Multisector ETF(IRBO). These AI ETFs offer exposure to the best AI companies poised for rapid growth.
Artificial Intelligence is a rapidly growing technology that improves business operations through automation, intelligent analysis and recognition, and other enterprise-level cognitive technologies. OpenAI, an AI research and deployment company, has launched ChatGPT in November 2022. This tool, which is a viral AI, has sparked renewed interest in this industry.
ChatGPT had reached 100 million active monthly users by January, only two months after its launch. This makes it the fastest growing consumer application ever, according to an UBS study.
According to a Gartner, Inc. survey of over 2,500 executives, 45% said that ChatGPT's popularity has led them to increase their AI investments. 70% of executives reported that their company is in exploratory mode with Generative Artificial Intelligence.
According to the Forbes Advisor survey business owners use AI or plan to integrate it in a variety of areas, including operations, to reduce costs and save time. Customer service is the most popular AI application, with 56% using it for this purpose.
AI is used by 51% for cybersecurity and fraud prevention. AI is also used for digital personal assistants (47%) and customer relationship management (46%) as well as inventory management (40%) Businesses also use AI to produce content (35%), recommend products, perform accounting (30%) and manage supply chains (30%).
Grand View Research has published a report that projects the global artificial-intelligence market to reach $1.81 trillion in 2030. This is a growth rate of 37.3%.
Investors can buy AI ETFs such as BOTZ, ROBO and IRBO to ride the AI wave.
Take a closer view at these fundamentals:
Global X Robotics & Artificial Intelligence ETF
BOTZ aims to provide a market-cap-selected, weighted exposure for companies that could benefit from the increasing adoption and use of robotics, artificial intelligence and non-industrial robotics. This includes those in industrial robotics, automation and non-industrial robotics, as well as autonomous vehicles.
BOTZ tracks Indxx Global Robotics and Artificial Intelligence Thematic index. BOTZ's assets under management (AUM), which are $1.73 billion, total 1.73 billion dollars. The fund holds 45 different securities. The fund's top holdings are Intuitive Surgical, Inc. with a weighting of 10.06%, NVIDIA Corporation at 9.50%, and ABB Ltd. with weightings of 8.23% and 8.16%, respectively.
The expense ratio is 0.69%, compared to a category average of 0.65%. In the last three months, BOTZ's fund inflows were $101.86 millions and $89.72 over the last six months. The ETF also has a beta value of 1.25.
BOTZ closed the last trading day at $25.57, up 21.9% in the past six-months and 17.9% for the past year. The NAV is $25.51 on May 10, 2023.
BOTZ's Power Ratings reflect a positive outlook. Our proprietary rating system equates the fund's A-rating to a Strong Purchase. The POWR ratings are calculated using 118 factors. Each factor is weighted optimally.
BOTZ is rated A for Buy and Hold, Trade, and Peer. It is the 10th-ranked ETF out of 118 in the Technology Equities ETFs B-rated group.
Click here to access BOTZ's POWR ratings.
ROBO is a global index that tracks companies driving innovations in robotics and automation.
ROBO tracks performance of the ROBO TR Global Robotics and Automaton Index. ROBO's largest holdings are Intuitive Surgical, Inc., (ISRG), with a 2.31% AUM, Kardex Holdings AG, with 1.96%, Azenta, Inc., and Keyence Corporation, each at 1.77%. The company currently holds 80 companies.
ROBO's fund flows were $8.25 millions over the last three months and $1.02million in the past six. The ROBO's expense ratio is 0.95%, compared to the category average of 0.65%. The ETF NAV stood at $53.20 on May 9, 2023.
The fund closed the last trading day at $53.25, up 12.5% in the past six-months and 13.1% for the year. The beta is 1.25.
The POWR ratings of ROBO reflect its fundamental strength. The ETF's overall rating is A, which translates to a Strong Purchase in our proprietary rating system.
ROBO is rated A+ for Buy and Hold, Trade. The fund also received a B for peer. The fund is ranked 12th out of 118 ETFs within the group B-rated Technologies Equity ETFs.
Click here to view all ROBO ratings
IRBO aims to provide exposure to a weighted equal index of companies from developed and emerging markets that are likely to benefit long-term from growth and innovation within robotics and artificial intelligence.
The ETF tracks performance of the NYSE FactSet Global Robotics & Artificial Intelligence Index. IRBO's AUM is $304.10 millions. The fund holds 118 different holdings. The fund's top holdings are Meta Platforms Inc. with a weighting of 1.56%, Spotify Technology at 1.46%, iQIYI, Inc. at IQ, and Meitu, Inc. at 1.44%.
IRBO's expense ratio is 0.47%. This is lower than the average category of 0.65%. In the last month, IRBO's fund inflows totaled $12.08 millions, and $44.02 over the last six months. It also has a beta value of 1.13.
IRBO closed the last trading session with a value of $29.31, up 15.6% in the past six-months and 7.7% for the past year. The fund's NAV is $29.23 on May 10, 2023.
IRBO POWR Ratings reflect a strong outlook. Our proprietary rating system translates the ETF's B-rating into a Buy.
IRBO is rated B for Buy & Hold & Trade. IRBO ranks 46 out of 118 ETFs that are part of the same group.
Click here to access the complete POWR ratings for IRBO.
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BOTZ shares were unchanged during premarket trading on Thursday. BOTZ shares have gained 24.45% year-to-date compared to an 8.37% increase in the benchmark S&P 500 during the same time period.
Mangeet K. Bouns
Mangeet became a financial journalist and investment researcher because of her keen interest in the stock markets. Mangeet uses her fundamental approach for analyzing stocks to help investors make informed decisions.