• Thu. Dec 3rd, 2020

Dimancherouge

Technology

Future Trends in Robotics Should Translate to More Upside for “UBOT”

The robotics industry has proven its mettle amid the Covid-19 pandemic with machines taking the place of humans in order to stave off further infections from the virus. That said, a recent Robotics & Automation News article identified additional trends that can only further the expansion of the robotics industry–good news for ETFs like the Robotics & AI Bull 3X ETF (NYSEArca: UBOT).

“The robotics industry is one that has been evolving and growing over recent years,” the article noted. “New developments in the industry have allowed both individuals and larger corporations to perform certain tasks in a much more efficient way.”

Among the trends identified include companies teaming up, large acquisitions, scaling up inventory in retail, and reduced debates on the types of robots used for specific applications.

“This industry is set to become extremely profitable as more companies realise that they could use robots within their organisation,” the article added. “The future of the robotics industry isn’t quite known but we can expect these trends to become apparent over the coming year. It is very likely that we will one-day rely on robots to perform many tasks.”

UBOT Chart

UBOT data by YCharts

Leveraging the Move to Robotics

Traders looking to capitalize on the move to robotics can use UBOT as a tool. UBOT seeks daily investment results equal to 300 percent of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index, which is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence.

The robotics space is certainly in a push-pull dichotomy of investors capitalizing on the latest in disruptive technology, while at the same time, getting push back from those threatened by the wider adoption of robots. The fears are warranted given that robotics technology has the capacity to supplant human jobs.

Key characteristics of UBOT:

  • The Indxx Global Robotics and Artificial  Intelligence Thematic Index (IBOTZNT) is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence, including companies involved in developing industrial robots and production systems, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments, as determined by the index provider, Indxx.
  • Companies must have a minimum market capitalization of $100million and a minimum average daily turnover for the last 6 months greater than, or equal to, $2 million in order to be eligible for inclusion in the Index.

For more market trends, visit ETF Trends.

Read more on ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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