Robotics ETFs, big gainers in 2017, could see another boost from the tax bill

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Robotics ETFs, big gainers in 2017, could see another boost from the tax bill

MarketWatch

Two ETFs related to automation have more than doubled the return of the S&P 500 this year

While a number of prominent economists have expressed concern over the impact that automation and robotics could have on the labor market over the coming years, it’s a trend that’s been paying off for investors this year, and which could accelerate thanks to the recently passed tax bill.

Two exchange-traded funds dedicated to this investment thesis have seen sizable gains in 2017, with growth that’s more than twice the move of the overall market. The ROBO Global Robotics & Automation Index ETF ROBO, +0.15%  has gained 44.3% thus far this year, while the similarly themed Global X Robotics & Artificial Intelligence ETF BOTZ, +0.17%  is up 59.4%. The S&P 500 is up nearly 20% on the year.

Both funds hold a collection of companies dedicated to the robotics and automation industries, and this is a sector that investors increasingly want exposure to. The Global X fund has seen $1.35 billion in year-to-date inflows, including $153 million over the past month, according to FactSet data. About $1.53 billion has poured into the ROBO fund this year, with $97.7 million of that coming over the past month.

Such inflows are extremely strong, especially as investors gravitate toward low-fee and broad-market funds, instead of the kind of niche exposure offered by thematic vehicles. But it comes as the sector has been one of the fastest-growing parts of the market. The average component of the Global X fund has annual sales growth of 6.59%, according to FactSet.

That growth could accelerate given…Read More

Lakeem Khodra
Lakeem Khodra
News Writer/Contributor at Tyranny News @lakeemk

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