Global X Robotics & Artificial Intelligence ETF (BOTZ)BOTZ

Global X Robotics & Artificial Intelligence ETF (BOTZ)

Profile: The ETF Global X Robotics & Artificial Intelligence ETF (BOTZ) focuses on companies engaged in the research, development, and production of robotics and artificial intelligence (AI). It invests in global equities across market capitalizations, with a bias towards North American companies. Its asset allocation includes companies that manufacture robots, produce industrial and service robots, develop AI technology, or provide related products and services.

Objective: BOTZ's primary investment goal is to track the Indxx Global Robotics & Artificial Intelligence Thematic Index, aiming to provide returns that, before fees and expenses, generally correspond to the total return performance of that index.

Issuer: Global X Management Company LLC (Global X), a subsidiary of Mirae Asset Global Investments. Global X has a positive reputation in the ETF industry, known for its innovative thematic ETFs and strong track record.

Market Share: BOTZ holds the top position in its sector, with an estimated market share exceeding 50%.

Total Net Assets: As of November 17th, 2023, BOTZ has approximately $3.33 billion in total net assets.

Moat: BOTZ boasts several competitive advantages:

• First-mover advantage: BOTZ was the first ETF dedicated to robotics and AI, establishing itself as a leader in this emerging sector.
• Diversification: The ETF offers broad exposure across various robotics and AI sub-industries, mitigating the risks associated with focusing on specific segments or individual companies.
• Experienced management: Global X has a proven track record with thematic ETFs and a dedicated research team that continuously analyzes the AI and robotics landscape.

Financial Performance:

• YTD: 11.34%
• 1 Year: -18.44%
• 3 Year: -4.53%
• 5 Year: 11.44%

Benchmark Comparison: BOTZ outperformed its benchmark, the Indxx Global Robotics & Artificial Intelligence Thematic Index, which returned -3.15% YTD as of November 17, 2023.

Growth Trajectory: The robotics and AI sector is expected to experience significant growth in the future. The global robotics market is projected to reach $300 billion by 2030, while the global AI market is estimated to reach $309.35 billion by 2026. This indicates a promising growth trajectory for BOTZ.

Liquidity:

• Average Trading Volume: 5.44 million shares
• Bid-Ask Spread: 0.02% (indicating high liquidity and low trading costs)

Market Dynamics: Key factors affecting the ETF's market environment include advancements in robotics and AI technology, government regulations, technological adoption rates, and economic conditions.

Competitors: Key competitors in the robotics and AI ETF space include:

• iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
• ARK Innovation ETF (ARKK)
• First Trust ISE Cloud Computing Index (SKYY)
• Invesco AI & Robotics Global Tech ETF (ROBO)

Competitor Market Share Percentages:

• BOTZ - 52%
• IRBO - 17%
• ARKK - 14%
• ROBO - 9%
• SKYY - 6%

Expense Ratio: 0.68%

Investment Approach: BOTZ employs a passive investment strategy, replicating the holdings of its underlying index. The portfolio includes companies like Intuitive Surgical (ISRG), NVIDIA (NVDA), Tesla (TSLA), and FANUC (FANUY).

Key Points: BOTZ offers exposure to the high-growth robotics and AI sectors, a well-diversified portfolio, and strong liquidity.

Risks: Key risks include market volatility associated with emerging industries and the potential for technological disruptions affecting individual companies within the portfolio.

Who Should Consider Investing: Individuals seeking long-term growth potential with risk tolerance for technology and emerging market exposure.

Fundamental Rating Based on AI: 8.5

Evaluation: BOTZ exhibits a strong fundamental rating due to its first-mover advantage, experienced management, well-defined investment strategy, and promising growth potential of the underlying sector. While volatility and technological risk exist, the ETF offers a compelling opportunity for investors looking to tap into the potential of AI and robotics.

Resources:

• Global X Robotics & Artificial Intelligence ETF (BOTZ) - https://www.globalxetfs.com/botz/
• Indxx Global Robotics & Artificial Intelligence Thematic Index - https://www.indxx.com/index-methodology-indxx-global-robotics-artificial-intelligence-i-index/
• YCharts - https://ycharts.com/indicators/robotics_and_ai_market
• Statista - https://www.statista.com/outlook/cmo/robotics/worldwide

Disclaimers: The presented information should not be considered as financial advice. Always conduct independent research and consult a qualified financial advisor before making investment decisions.