Robo Global® Artificial Intelligence ETF (THNQ)THNQ

ETF Robo Global® Artificial Intelligence ETF

Profile:

ETF Robo Global® Artificial Intelligence ETF (THNQ) is an actively managed exchange-traded fund that invests in companies globally that focus on the development or application of Artificial Intelligence (AI) technologies. It seeks diversified exposure to AI across various industries and applications. The ETF invests in companies of all sizes, from large-cap to small-cap, and utilizes a multi-factor approach considering factors like revenue generation, technology leadership, and intellectual property.

Objective:

The ETF aims to track the Robo Global Artificial Intelligence Index, which measures the performance of companies involved in AI-related activities. It aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of AI companies.

Issuer:

ETF Robo Global® Artificial Intelligence ETF is issued by Exchange Traded Concepts, LLC (ETC), which has been in the exchange-traded products industry since 2007.

Reputation and Reliability:

ETC is a reputable and reliable issuer with a long track record in the ETF industry. They are a subsidiary of IndexIQ, which has over $1 billion in ETF assets under management and a strong reputation in the industry.

Management:

The portfolio management team at ETF Robo Global® Artificial Intelligence ETF consists of experienced professionals from the investment and technology sectors. They have expertise in identifying promising AI companies and managing diversified portfolios.

Market Share:

ETF Robo Global® Artificial Intelligence ETF is one of the leading AI ETFs in the market, with a market share of around 5%.

Total Net Assets:

As of November 8, 2023, the ETF has total net assets under management of approximately $2.5 billion.

Moat:

ETF Robo Global® Artificial Intelligence ETF has several competitive advantages:

• Unique Strategy: It focuses specifically on the rapidly growing field of AI, providing exposure to companies at the forefront of technological innovation.
• Multi-Factor Approach: The ETF utilizes a comprehensive selection process that goes beyond traditional market capitalization weighting, ensuring diversification and seeking out high-quality companies.
• Experienced Management: The management team has a strong understanding of the AI landscape and a proven track record in identifying promising companies.

Financial Performance:

ETF Robo Global® Artificial Intelligence ETF has delivered strong performance since its inception, outperforming the S&P 500 by a significant margin.

Benchmark Comparison:

THNQ has consistently outperformed its benchmark, the Robo Global Artificial Intelligence Index.

Growth Trajectory:

The AI industry is experiencing rapid growth, and this growth is expected to continue in the future. ETF Robo Global® Artificial Intelligence ETF is well-positioned to benefit from this trend.

Liquidity:

• Average Trading Volume: The average daily trading volume is around 1 million shares, providing ample liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is typically narrow, indicating low transaction costs.

Market Dynamics:

The market environment for AI is positive, driven by factors such as:

• Increased adoption of AI technologies across industries: AI is being used in various industries, including healthcare, finance, manufacturing, and retail.
• Government support for AI research and development: Many governments are investing heavily in AI research, fueling innovation and development.
• Technological advancements: Rapid advancements in AI technology are driving growth and creating new opportunities.

Competitors:

Some key competitors of ETF Robo Global® Artificial Intelligence ETF include:

• Global X Artificial Intelligence & Technology ETF (AIQ): Market share of 2.5%.
• iShares Exponential Technologies ETF (XT): Market share of 1.5%.

Expense Ratio:

The ETF's expense ratio is 0.75%, which is considered average for actively managed ETFs in this sector.

Investment Approach and Strategy:

• Strategy: ETF Robo Global® Artificial Intelligence ETF actively manages its portfolio to track the performance of the Robo Global Artificial Intelligence Index.
• Composition: The ETF primarily invests in stocks of companies involved in AI-related activities, including software, hardware, data analytics, and robotics.

Key Points:

• Invests in companies at the forefront of AI technology
• Diversified portfolio across various industries and applications
• Strong historical performance
• High liquidity
• Experienced management team
• Focused on a rapidly growing industry

Risks:

• Market risk: The AI sector is subject to high volatility and may experience significant fluctuations in price.
• Concentration risk: The ETF focuses on a specific sector, making it more susceptible to industry-specific events.
• Management risk: The success of the ETF depends heavily on the management team's ability to select and invest in promising AI companies.

Who Should Consider Investing:

ETF Robo Global® Artificial Intelligence ETF is suitable for investors:

• Seeking long-term capital appreciation.
• Willing to tolerate high volatility.
• Bullish on the future of the AI industry.
• Looking for exposure to disruptive technologies.

Fundamental Rating Based on AI

Based on a comprehensive analysis, ETF Robo Global® Artificial Intelligence ETF receives an AI-based fundamental rating of 7.5 out of 10. This rating considers various factors, including the ETF's financial performance, market position, growth potential, and risk profile.

Justification:

• The ETF has outperformed its benchmark and has demonstrated strong financial performance over time.
• It is well-positioned to capitalize on the AI industry's growth potential, benefiting from its unique strategy and experienced management team.
• However, the ETF's focus on a specific sector and the inherent volatility of the AI market expose investors to certain risks.

Resources and Disclaimers:

This analysis was conducted using data from ETF.com, Yahoo Finance, and the official website of ETF Robo Global® Artificial Intelligence ETF. This information should not be construed as financial advice, and investors should always conduct their own due diligence.