The potential upside to ETFs isn’t as great as that of individual stocks yet this approach spreads out risk while providing investors with an opportunity to make money as the sector continues to expand. Some investors are going as far as investing in multiple AI ETFs in an attempt to maximize exposure to the sector without subjecting their hard-earned money to the comparably high risk inherent to owning individual stocks.
iShares Robotics and Artificial Intelligence ETF (IRBO) and Global X Robotics & Artificial Intelligence Thematics ETF (BOTZ) are two of the top AI and robotics ETFs, each with its own unique holdings. Let’s take a look at each of these ETFs to give readers a better sense of whether both are worthy of sizable investment.
IRBO’s top 10 holdings include Domo, MicroStrategy, Comet Holdings, HubSpot, and Splunk. Slightly more than 55% of IRBO’s holdings are based in the United States. About 10% of the fund’s holdings are in Japan, another 8% are in China and 6% are in Hong Kong.
IRBO is currently priced at $45. The ETF’s 52-week high is $52.10. IRBO has a 52-week low of $31.45.
IRBO is an open-ended worldwide fund with investments in businesses in both emerging and developed markets. These companies specialize in AI and robotics.
The businesses within the IRBO ETF must meet specific criteria such as a billion dollars in yearly revenue from a specific sub-industry or 20% market share to remain within the fund. IRBO is reconstituted each year. The fund is rebalanced semi-annually. All in all, IRBO has $440.15 million assets under management.
Out of the 188 ETFs in the Technology Equities group, IRBO ranks 66th. This group of ETFs as a whole has an A POWR Rating grade. You can learn more about them by clicking here.
BOTZ has emerged as one of the top AI ETFs since debuting in September of ’16. This AI and robotics ETF has an A POWR Rating grade. BOTZ has A grades in the Buy & Hold and Trade components of the POWR Ratings. Investors who are curious as to how BOTZ fares in the remainder of the POWR Ratings components are encouraged to click here to find out that information.
Out of the 118 ETFs in the Technology Equities category, BOTZ is ranked 18th. You can learn more about Technology Equities ETFs by clicking here.
BOTZ is currently priced at $37.21. The ETF’s 52-week high is $37.23. BOTZ has a 52-week low of $26.02. BOTZ has an average daily volume of $15.81 million. The ETF’s net asset value is $36.68.
BOTZ’s purpose is to help investors make money through strategic investments in publicly traded companies that generate revenue through AI and robotics. The holdings’ components must provide industrial robotics and automation, AI, unmanned vehicles/drones, and/or nonindustrial robotics to remain as a holding.
All in all, BOTZ has 38 total holdings. BOTZ’s top holdings include NVIDIA, Intuitive Surgical, and Upstart Holdings. Exactly 8.86% of the fund’s holdings are invested in NVIDIA. Another 8.5% is invested in Intuitive Surgical. Exactly 7.74% of the fund’s holdings are parked in Upstart Holdings.
Additional BOTZ holdings include Fanuc Corporation, ABB Ltd., SMC Corporation, and Omron Corporation. Chances are you have heard of some of these companies and possibly even considered an investment in one or several in the past. BOTZ provides a golden opportunity to own each of these stocks with comparably less risk.
More than 45% of BOTZ’s holdings are based in the United States. It is interesting to note slightly more than one-third of the ETF’s holdings are headquartered in Japan. Another 11.28% of BOTZ’s holdings are located in Switzerland. BOTZ is also invested in publicly traded companies in countries including the United Kingdom, Canada, Israel, South Korea, and Finland.
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IRBO shares were trading at $45.35 per share on Wednesday afternoon, up to $0.82 (+1.84%). Year-to-date, IRBO has gained 14.06%, versus a 21.88% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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