Top Stocks to Buy: Global X Robotics & Artificial Intelligence ETF (BOTZ)
My first choice is actually an exchange-traded fund. When we mention tech stocks, the first names that typically come to mind are Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). The importance of these names in many portfolios as well as daily lives cannot be denied.
Yet, there are many other companies that may pique the interest of investors, especially when it comes to emerging subsectors like robotics, artificial intelligence, industrial robots and autonomous vehicles, such as drones. And that is where the Global X Robotics & Artificial Intelligence ETF comes in, since it focuses on stocks operating in these areas.
The fund, which was launched in 2016, currently invests in 31 global companies. Therefore, investors get exposure to businesses headquartered outside the U.S., as well.
Nvidia (NASDAQ:NVDA), Intuitive Surgical (NASDAQ:ISRG), ABB (NYSE:ABB), Fanuc (OTC:FANUY) and Keyence (OTC:KYCCF) are the top five companies, comprising around 40% of the fund.
Net assets are over $1.7 billion. The dividend yield and expense ratio are 0.23% and 0.68% respectively. In terms of country breakdown, Japan tops the list with over 41%. Next is the U.S. (36.4%) and Switzerland (13.3%).
So far in the year, BOTZ is up about 23%. On Sept. 2, it hit an all-time high of $28.13. Its trailing price-earnings ratio of 38x and price-book ratio of 3.4x , coupled with short-term technical analysis, suggest that there may be short-term profit-taking in the fund.
Long-term investors who believe this new decade may be driven by advances in the field, may consider buying the dips, especially if the price goes toward $25.
Source: Investor Place