[ad_1]
That's the rise of robots.
ROBO Global Robo and Automation Index ETF, ROBO, a fund that tracks 90 leading companies in the robotics industry, grew by more than 18% in 2019.
This gain since the beginning of the year – nearly 35% of the total gain of the ETF since its launch in 2013 – represents a trend that is approaching a turning point for the robotics industry and for the entire US economy, said William Studebaker, President and CIO of Robo Global.
"We are on the eve of an ubiquitous automation and we have an undeniable inflection point because of the computer performance capabilities and the cost curve that makes these technologies, which were formerly science fiction, now have real applications, "said Monday Studebaker. on CNBC's ETF Edge.
"We are on a launching pad with respect to the economic activity we are observing and innovations, and this is spreading to all levels of the economy," said the chief investment officer. "All sectors of the economy will benefit from robotics and I.A."
Many of the main positions of ROBO may not be familiar to the average investor. They include shares in Oceaneering, a manufacturer of remote-controlled vehicles for the energy industry, Hiwin Technologies, a Taiwanese manufacturer of machine components, and thermal imaging company Flir Systems. The most recognizable name among the top five is Nvidia, an American chip maker.
From ROBO Global's point of view, some of the companies are leading the charge towards full automation. Earlier this year, the Brookings Institution, a Washington-based think-tank, said that a quarter of American jobs were threatened by automation.
"We are trying to identify the companies that we believe have the highest revenue threshold that is directly related to technology sales," Studebaker said. "So we are looking for a high turnover of business, we are also looking for a broad technology gap around their business, and I think we have an interesting goal to capture that."
With seven PhDs in the ROBO team, Studebaker said "who's who in robotics and A.I." is the key to capturing the gains made by ROBO in its six years of existence.
The team of technology experts, business specialists and academic researchers "gives us a great goal not to see what are the winners of yesterday, but what will be the future winners," he said. declared.
They also make the ETF quite expensive compared to the rest of the space, with a commission of 95 basis points. But investors who subscribe will get their money's worth, said Studebaker, adding that a securities lending plan only provides that the actual cost to investors does not exceed 70 basis points.
"With the team of industry experts we monitor, we think we are doing quite well at generating the alpha sought by investors," he said. "We believe that the inflection begins here and that we have years, even decades of growth ahead of us."
This inflection point allowed ROBO Global to double its activity in another growing field: healthcare technology. In June, the company launched another fund, the ROBO Global Healthcare Technology & Innovation ETF.
"For us, health care is probably one of the most interesting areas for investors," Studebaker said. "Why, we are entering a world of prediction, prevention, [and] individualizing medicine. Indeed, we will create much healthier livelihoods for us, but more importantly, longer longevity. "
As the world evolves from overnight sickness to global foresight and prevention, this ETF, the HTEC symbol, should begin to spark the interest of the investment community, the Siad CIO.
"Many health care structures tend to focus on therapies," he said. "In fact, we are focusing much more on prediction and prevention, so on diagnostics and medical devices, regenerative medicine, and prevention, so these are the types of technologies that investors need to adopt when they're in the business." they are considering health care. "
ROBO fell slightly during Friday's trading session, falling less than 1%. HTEC lost more than 1%.
Warning
Source link
