Stock Market News

Robotics and Artificial Intelligence Fund Excels

The exchange-traded fund (ETF) Robotics & Artificial Intelligence ETF (BOTZ) has done well so far this year by investing in companies that are involved in the development and production of robots or artificial intelligence aimed at benefiting humanity.

Artificial intelligence (AI) is a specific field in robotics where the ultimate goal is to create a machine with the capability of undertaking a thought process similar to that of humans. This includes the ability to learn, to reason, to use language and to formulate original ideas.

As fast-growing technological fields with high potential, robotics and AI have made vast advancements in recent years, especially in areas such as manufacturing. However, the speculative nature of the technology means that AI and robotics companies in the field inherently carry a fairly high degree of risk. BOTZ somewhat mitigates this problem by providing investors with exposure to a group of companies in the field, thus diversifying the risk to a certain extent.

BOTZ invests only about a quarter of its $146.43 million total assets in U.S. equities. The rest is invested in companies in other developed countries such as Japan.

Year to date, BOTZ has returned 25.37% versus the S&P 500’s 8.83%. From the chart below, you can see that the fund has been on a strong path upwards since the beginning of 2017, and its share price has climbed to the $19 range from $15. BOTZ has an expense ratio of 0.68% and does not pay a dividend.

Currently, BOTZ is working with a relatively small and concentrated basket of companies. Its total holdings consist of just 28 companies right now. The fund’s top five holdings are Intuitive Surgical Inc. (ISRG), 7.92%; Keyence Corp, 7.64%; SMC Corp, 7.42%; ABB Ltd. (ABB), 7.26%; and Mitsubishi Electric Corp, 6.94%.

If you believe in the future of robotics and artificial intelligence, I encourage you to look to Robotics & Artificial Intelligence ETF (BOTZ) to add to your portfolio.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Intelligence Report, Investing Edge, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.