Introduction:
Investing in robotics and artificial intelligence (AI) has become a hot topic in the finance world. With the advancement of technology and its widespread use in our daily lives, it is no surprise that investors are now looking at this field as a potential investment opportunity.
One way to invest in this sector is through exchange-traded funds (ETFs), specifically the Global X Robotics & AI ETF. In this article, we will analyze the Global X Robotics & AI ETF and assess if it is worth investing in.
What is the Global X Robotics & AI ETF?
The Global X Robotics & AI ETF is an ETF that invests in companies that are involved in the development of robotics and AI. The ETF tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, which measures the performance of companies across a range of industries that are involved in these sectors.
The ETF currently has 30 holdings, with the top 5 holdings being Intuitive Surgical, NVIDIA, Keyence Corp, Daifuku, and Fanuc. The ETF has an expense ratio of 0.68%, which is relatively low compared to other ETFs.
Is it worth investing in?
When assessing the worth of investing in the Global X Robotics & AI ETF, several factors must be considered.
Growing Industry
The robotics and AI sectors are constantly growing, with new technological advancements being made every day. This growth indicates that the demand for robotics and AI will continue to increase. Investing in an ETF that specializes in this sector will allow investors to gain exposure to this promising industry.
Diversification
The Global X Robotics & AI ETF provides investors with diversification, as it invests in multiple companies across various industries. Diversification helps mitigate risk, as it reduces the impact of any one company on the overall investment portfolio.
Performance
Since its inception in September 2016, the Global X Robotics & AI ETF has been performing well. As of August 2021, the ETF has a year-to-date return of 22.36%, and a five-year average return of 33.09%.
Expert Opinions
According to several experts, investing in the robotics and AI sectors is a wise move. The sectors have the potential for exponential growth, as technological advancements continue to be made. Additionally, many analysts consider the Global X Robotics & AI ETF as a good investment option.
Conclusion
Investing in the Global X Robotics & AI ETF can provide investors with diversification, exposure to a growing industry, and the potential for attractive returns. However, like any investment, there are risks involved, and investors must do their due diligence before investing.
Overall, with the ongoing development of robotics and AI, investing in a specialized ETF such as the Global X Robotics & AI ETF can be a smart decision.
