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AI & Robotics ETFs to Keep Shining on Expanding Applications
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This era is largely dominated by AI applications and technological advancements. Amid the coronavirus crisis, demand for online services has increased which in turn has led to the dominance of AI. Going on, due to the coronavirus outbreak, the robotics market is booming with robots being used for jobs such as sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling, and delivering food and medicines.
The current conditions seem favorable for the robotic markets in government applications, such as health, security and defense. Notably, AI is supporting in the fast-evolving of business landscape by opening up opportunities, driving revenues and enhancing efficiencies. The AI platform helps enhance almost everything, including advertising, healthcare, robotics, retail, video streaming, gaming and urban development.
Amid the coronavirus pandemic, consumers continue to opt for online purchases of food items and other goods and are resorting to video streaming services and other modes of in-house entertainment. In line with the rising online shopping trend, customers are resorting to digital payments to clear bills, while merchants and utility providers are advocating the same. In fact, the AI market in the retail segment is expected to grow by $14.05 billion (including the pandemic impact) during 2019-2023, per an Analytics Insight article.
Robots are also being widely used in warehouses of giants like Alibaba (BABA) to automate and streamline order completion. Going by the third Watch News report, based on the teeming prospects that the coronavirus pandemic gave rise to, the autonomous delivery robots market is expected to see a CAGR of above 49.5% during the 2020-2025 forecast period.
AI-enabled chips are seeing growing demand as they allow applications that need AI for object detection, computer vision, natural language processing and facial recognition to function in a time-efficient manner, per an Analytics Insight article. In fact, the AI chip market, which was worth $6.64 billion in 2018, is expected to reach a value of around $91.19 billion by 2025, at a CAGR of 45.2%, per an Allied Market Research report. Notably, North America held the largest share in contributing to the global AI chip market, with $2.44 billion in 2018, according to an Allied Market Research report. The North American market for AI-enabled chips is projected to value about $28.26 billion by 2025, at a CAGR of 41.7%, per the same report. Thus, several companies are investing significantly to gain from this market momentum.
Going by the Analytics Insight article, NVIDIA (NVDA), Qualcomm (QCOM) and Advanced Micro Devices (AMD) are developing AI-enabled chips that will strengthen the performance of AI applications. NVIDIA’s graphical processing units (GPUs) are rapidly benefiting from the proliferation of AI. By applying its GPUs in AI models, the company is expanding its base in other untapped markets like automotive, healthcare and manufacturing, which will support its earnings and revenues.
Telemedicine and Digital Health are much in demand through the pandemic. With a large amount of the global population under stay-at-home orders, technology-based tools that enable remote communication with doctors and allow patient monitoring have become popular. In today’s time, data management and storage have become an integral aspect of healthcare. Moreover, the coronavirus pandemic has resulted in doctors increasingly opting for online consultations.
According to a MarketsandMarkets report, the global AI healthcare market is expected to reach a worth of around $45.2 billion by 2026 from $4.9 billion in 2020, at a CAGR of 44.9%. Growing volume of healthcare data and increasing complexities of datasets need to bring down healthcare costs, enhance computing power and cut hardware costs, increasing number of cross-industry partnerships and alliances, and growing imbalance between health workforce and patients are leading the upside in the market, per the report.
Meanwhile, robots come in handy in combatting the coronavirus pandemic by enabling mobile unmanned platforms with ultraviolet light (UV-C) to kill harmful microorganisms and disinfect facilities, such as hospitals, office spaces, shopping malls, schools, airports and production facilities. In such a scenario, the mobile robotics market is teeming flooded with opportunities as robots are being effectively used for jobs like sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling and delivering food and medicines.
ETFs to Shine
Globally, the AI market is estimated to see a CAGR of 29%, rising from a worth of $42.8 billion in 2019 to $152.9 billion in 2023, according to an Analytics Insight article. Additionally, the global robotics market is expected see a CAGR of 25.38% over the forecast period between 2020 and 2025, per a ResearchAndMarkets.com report.
Below we discuss a few AI and Robotics ETFs that investors can consider as an investment option:
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) — up 51.1% in 2020
The fund tracks the investment results that correspond generally to the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index. Notably, the fund provides exposure to the performance of companies which benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. The fund has 32 holdings, with an AUM of $2.38 billion. It charges 68 bps in fees (read: Nvidia Q3 Earnings and Revenues Top: ETFs to Buy).
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO - Free Report) — up 48%
The fund tracks investment results that correspond generally to the performance of the NYSE FactSet Global Robotics and Artificial Intelligence Index. Notably, the fund provides exposure to companies that could benefit from the long-term growth and advancement in robotics and AI. The fund has 112 holdings, with an AUM of $292.5 million. The fund charges 47 bps in fees (read: ETF Areas to Ride the Thematic Investing Trend in Q4).
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report) — up 46.6%
The fund tracks the investment results that correspond generally to the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index. Notably, the fund provides exposure to companies involved in AI, robotics and automation. The fund has 109 holdings, with an AUM of $183.9 million. It charges 65 bps in fees (read: Artificial Intelligence and Robotics ETF (ROBT - Free Report) at a 52-Week High).
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AI & Robotics ETFs to Keep Shining on Expanding Applications
This era is largely dominated by AI applications and technological advancements. Amid the coronavirus crisis, demand for online services has increased which in turn has led to the dominance of AI. Going on, due to the coronavirus outbreak, the robotics market is booming with robots being used for jobs such as sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling, and delivering food and medicines.
The current conditions seem favorable for the robotic markets in government applications, such as health, security and defense. Notably, AI is supporting in the fast-evolving of business landscape by opening up opportunities, driving revenues and enhancing efficiencies. The AI platform helps enhance almost everything, including advertising, healthcare, robotics, retail, video streaming, gaming and urban development.
Amid the coronavirus pandemic, consumers continue to opt for online purchases of food items and other goods and are resorting to video streaming services and other modes of in-house entertainment. In line with the rising online shopping trend, customers are resorting to digital payments to clear bills, while merchants and utility providers are advocating the same. In fact, the AI market in the retail segment is expected to grow by $14.05 billion (including the pandemic impact) during 2019-2023, per an Analytics Insight article.
Robots are also being widely used in warehouses of giants like Alibaba (BABA) to automate and streamline order completion. Going by the third Watch News report, based on the teeming prospects that the coronavirus pandemic gave rise to, the autonomous delivery robots market is expected to see a CAGR of above 49.5% during the 2020-2025 forecast period.
AI-enabled chips are seeing growing demand as they allow applications that need AI for object detection, computer vision, natural language processing and facial recognition to function in a time-efficient manner, per an Analytics Insight article. In fact, the AI chip market, which was worth $6.64 billion in 2018, is expected to reach a value of around $91.19 billion by 2025, at a CAGR of 45.2%, per an Allied Market Research report. Notably, North America held the largest share in contributing to the global AI chip market, with $2.44 billion in 2018, according to an Allied Market Research report. The North American market for AI-enabled chips is projected to value about $28.26 billion by 2025, at a CAGR of 41.7%, per the same report. Thus, several companies are investing significantly to gain from this market momentum.
Going by the Analytics Insight article, NVIDIA (NVDA), Qualcomm (QCOM) and Advanced Micro Devices (AMD) are developing AI-enabled chips that will strengthen the performance of AI applications. NVIDIA’s graphical processing units (GPUs) are rapidly benefiting from the proliferation of AI. By applying its GPUs in AI models, the company is expanding its base in other untapped markets like automotive, healthcare and manufacturing, which will support its earnings and revenues.
Telemedicine and Digital Health are much in demand through the pandemic. With a large amount of the global population under stay-at-home orders, technology-based tools that enable remote communication with doctors and allow patient monitoring have become popular. In today’s time, data management and storage have become an integral aspect of healthcare. Moreover, the coronavirus pandemic has resulted in doctors increasingly opting for online consultations.
According to a MarketsandMarkets report, the global AI healthcare market is expected to reach a worth of around $45.2 billion by 2026 from $4.9 billion in 2020, at a CAGR of 44.9%. Growing volume of healthcare data and increasing complexities of datasets need to bring down healthcare costs, enhance computing power and cut hardware costs, increasing number of cross-industry partnerships and alliances, and growing imbalance between health workforce and patients are leading the upside in the market, per the report.
Meanwhile, robots come in handy in combatting the coronavirus pandemic by enabling mobile unmanned platforms with ultraviolet light (UV-C) to kill harmful microorganisms and disinfect facilities, such as hospitals, office spaces, shopping malls, schools, airports and production facilities. In such a scenario, the mobile robotics market is teeming flooded with opportunities as robots are being effectively used for jobs like sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling and delivering food and medicines.
ETFs to Shine
Globally, the AI market is estimated to see a CAGR of 29%, rising from a worth of $42.8 billion in 2019 to $152.9 billion in 2023, according to an Analytics Insight article. Additionally, the global robotics market is expected see a CAGR of 25.38% over the forecast period between 2020 and 2025, per a ResearchAndMarkets.com report.
Below we discuss a few AI and Robotics ETFs that investors can consider as an investment option:
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) — up 51.1% in 2020
The fund tracks the investment results that correspond generally to the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index. Notably, the fund provides exposure to the performance of companies which benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. The fund has 32 holdings, with an AUM of $2.38 billion. It charges 68 bps in fees (read: Nvidia Q3 Earnings and Revenues Top: ETFs to Buy).
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO - Free Report) — up 48%
The fund tracks investment results that correspond generally to the performance of the NYSE FactSet Global Robotics and Artificial Intelligence Index. Notably, the fund provides exposure to companies that could benefit from the long-term growth and advancement in robotics and AI. The fund has 112 holdings, with an AUM of $292.5 million. The fund charges 47 bps in fees (read: ETF Areas to Ride the Thematic Investing Trend in Q4).
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report) — up 46.6%
The fund tracks the investment results that correspond generally to the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index. Notably, the fund provides exposure to companies involved in AI, robotics and automation. The fund has 109 holdings, with an AUM of $183.9 million. It charges 65 bps in fees (read: Artificial Intelligence and Robotics ETF (ROBT - Free Report) at a 52-Week High).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>