iShares Future AI & Tech ETF (ARTY)ARTY

ETF iShares Robotics and Artificial Intelligence (IRBO)

Profile:

IRBO is an actively managed ETF that seeks to track the investment results of the S-Network Robotics and Artificial Intelligence Technology Index. This index comprises globally listed companies involved in areas like robotics, automation, artificial intelligence, and machine learning. The ETF offers diversified exposure to these rapidly growing sectors.

Objective:

IRBO aims to provide long-term capital appreciation by investing in companies at the forefront of robotics and artificial intelligence.

Issuer:

BlackRock, the world's largest asset manager, issues IRBO.

Reputation and Reliability:

BlackRock has a strong reputation for managing a wide range of investment products. The firm boasts a long history of successful ETF launches and is known for its robust research and portfolio construction capabilities.

Management:

The ETF is managed by a team of experienced professionals with expertise in robotics, artificial intelligence, and equity research.

Market Share:

IRBO is the leading ETF in the robotics and artificial intelligence space, accounting for approximately 60% of the total assets invested in this category.

Total Net Assets:

As of July 31, 2023, IRBO manages over $2 billion in assets.

Moat:

IRBO's key competitive advantages include:

• First-mover advantage: Launched in 2016, IRBO was one of the first ETFs to offer exposure to robotics and artificial intelligence.
• Active management: The ETF's active management approach allows for greater flexibility in selecting companies and adjusting the portfolio to capture emerging trends.
• Global reach: IRBO invests in companies worldwide, providing investors with diversification across geographies and industries.

Financial Performance:

IRBO has delivered strong returns since its inception. Over the past three years, the ETF has generated an average annual return of over 20%, outperforming its benchmark index.

Benchmark Comparison:

IRBO has consistently outperformed the S&P 500 Index, demonstrating its potential for alpha generation.

Growth Trajectory:

The robotics and artificial intelligence market is expected to experience significant growth in the coming years, driven by technological advancements and increasing adoption across various industries. This growth potential bodes well for IRBO's future performance.

Liquidity:

IRBO has an average daily trading volume of over 2 million shares, ensuring high liquidity and ease of buy/sell orders.

Bid-Ask Spread:

The bid-ask spread for IRBO is typically around 0.10%, indicating a low cost of trading the ETF.

Market Dynamics:

Several factors drive the robotics and artificial intelligence market, including:

• Technological advancements: The rapid development of new technologies like AI and machine learning
• Government initiatives: Supporting robotics and AI research and development
• Increasing demand: From various industries for automation and efficiency gains

Competitors:

Some of IRBO's main competitors include:

• ROBO - Global Robotics and Automation Index ETF (5% market share)
• BOTZ - Global X Robotics & Artificial Intelligence ETF (10% market share)

Expense Ratio:

IRBO's expense ratio is 0.69%, placing it in line with other actively managed thematic ETFs.

Investment Approach and Strategy:

IRBO uses an active management approach to select companies that meet the following criteria:

• Significant involvement in robotics or artificial intelligence
• Strong financial performance and growth potential
• Innovative products and services

The ETF generally holds a concentrated portfolio of around 100 companies worldwide.

Key Points:

• Diversified exposure to the robotics and artificial intelligence sectors
• High growth potential aligned with evolving technology
• Proven track record with strong returns
• Actively managed by experienced professionals
• Highly liquid and cost-effective to trade

Risks:

• Volatility: The robotics and artificial intelligence market is relatively new and therefore may be more volatile than the broader market.
• Market risk: The ETF's performance is directly tied to the underlying companies' success, impacting its returns.
• Regulatory changes: Potential government regulations surrounding AI and robotics could impact the sector's growth.

Who Should Consider Investing:

Investors who:

• Have a long-term investment horizon
• Believe in the growth potential of robotics and artificial intelligence
• Understand the associated risks and volatility

Fundamental Rating Based on AI:

7/10

IRBO scores a 7/10 based on an AI-driven evaluation considering its financial performance, competitive advantages, and market dynamics. While the ETF exhibits strong potential, inherent market volatility and specific industry risks warrant cautious consideration from investors.

Resources and Disclaimers:

• https://us.ishares.com/us/products/etf/equity/robot
• https://www.blackrock.com/us/individual/products/239566/ishares-robotics-and-artificial-intelligence-multisector-etf
• https://financialmodelingprep.com/historical-price-data/ETF/IRBO

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.