I wrote an article about robotics/artifical intelligence for Canadian MoneySaver published last November. In that article I mentioned two ETFs: Robo Global Robotics & Automation ETF (ROBO) – which I own – and Global X Robotics & Artificial Intelligence ETF (BOTZ). Both trade on the NASDAQ and each has just under $2.5B US in assets under management. ROBO has a 0.95% management fee and is based on the ROBO Gbl Robotic & Automat TR USD index. BOTZ has a 0.69% management fee and is based on the INDXX Global Robotics & AI Thematic TR USD index.
Since writing the article, a Canadian version of ROBO was introduced on the TSX by Horizons called Horizons Robotics and Automation ETF (ROBO.TO). It is still small with only $51M CDN in assets under management and has a management fee of 0.75%. As it approaches $100M in assets under management, this hedged fund could be of interest to Canadian investors wishing to invest in this theme in Canadian dollars.
But the latest addition was announced on February 22 of this year. It is called First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT), has just $3M US in assets under management and a fee of 0.65%.
According to ETF.com:
“The fund tracks an index developed by the Nasdaq and the Consumer Technology Association, the Nasdaq CTA Artificial Intelligence and Robotics Index. The benchmark’s methodology selects stocks at the global level that meet [sic] have sufficient liquidity, at least $250 million in market capitalization and free float of at least 20%.
While it is not yet a week old, ROBT is one to watch for those wishing to invest in this secular trend. Given the growth in assets under management (ROBO and BOTZ in the last three months combined have seen inflows of $1.7B US) and the growth in the number of funds, there seems to be considerable investor interest in this secular trend.
(If you didn’t see it already, Ottawa Share Club member Jan also wrote about disruptive technologies that include AI and robotics. More here.)
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