Robots, artificial intelligence (AI) and highly advanced automation systems — not too long ago, this would sound like a lineup from a science fiction movie, but today there’s an entire ecosystem of industries built around these things. Productivity and use cases of these formerly bleeding-edge ideas and technologies has increased as time has passed. As adoption of robots, AI and automation continues to grow there certainly appears to be a unique opportunity for savvy traders to capitalize on.
Just in the industrial robotics sector, there has been significant growth with a total of more than 2.7 million robots operating worldwide as of 2020. Smart use and implementation of robotics apparently brought the infamously comfy shoe company Crocs (NASDAQ:CROX) significant success in 2020.
Trading the Future in the Present
With all the things going on in these expanding industries, traders may be interested in getting in on the action, and there’s an exchange-traded fund (ETF) for it. For traders with a short-term bullish stance on these sectors, and who crave the risk incurred with using leverage, the UBOT Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares ETF by Direxion is a daily bullish leveraged ETF based on the Indxx Global Robotics and Artificial Intelligence Thematic Index (IBOTZ).
The IBOTZ index is a thematic index that aims to track the performance of companies that we believe are expected to benefit from the increased adoption and use of robotics and AI. The near term still will likely have many movements and fluctuations, and some bearish traders may even want to look at the constituents of the IBOTZ index for candidates to short. However, the UBOT ETF’s goal is to provide bullish traders an opportunity to achieve 2 times the exposure for the value of the IBOTZ index on a daily basis.
Some of UBOT’s top holdings include companies in the robotics, AI and automation sectors, such as Nvidia (NASDAQ:NVDA), Abb (NYSE:ABB), Intuitive Surgical (NASDAQ:ISRG), Yaskawa Electric (OTC:YASKY) and John Bean Technologies (NYSE:JBT).
Entering into the Automatic Age?
Will robots or AI take over the world like numerous movies suggest? Most likely (and hopefully) the answer is a solid no. However, robotics, AI and automation as products, services and industries are still relatively early in their market maturity and are quite likely to end up changing the world for the better.