Global X Robotics & Artificial Intelligence ETF (BOTZ)

The Global X Robotics & Artificial Intelligence ETF offers exposure to robotics and AI across multiple sectors, focusing on "physical AI" applications. BOTZ tracks the Indxx Global Robotics & AI Thematic Index, with a $300M minimum market cap, allowing small-cap robotics inclusion. The portfolio of 49 holdings is concentrated in technology, industrials, and healthcare; the U.S. and Japan dominate country exposure.

The S&P 500 tops 6,400 for the first time as large-cap tech and AI-fueled gains propel the index. Tap AI-based ETFs like AIQ and ARKQ.

Most of the time, I prefer broad market-tracking index funds like the Vanguard S&P 500 ETF (VOO 0.34%). This exchange-traded fund (ETF) mirrors the component stocks of the classic S&P 500 (^GSPC 0.32%) market index.

NVDA's surge past a $4T market cap spotlights AI's explosive growth and the ETFs riding this tech-fueled momentum.

As AI surges and tariffs loom, ETFs like BOTZ, MAGS, VIG and GLD are emerging as top picks for the rest of 2025.

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SoftBank's $1T Arizona AI proposal and Trump's AI push, fuel ETF opportunities across AI, tech and uranium sectors.

I recommend buying the Global X Robotics & Artificial Intelligence ETF for exposure to exponential AI and robotics growth across diverse sectors, supported by Morgan Stanley's expanded 'Humanoid 100' list. BOTZ offers diversified holdings beyond pure tech, including automation, healthcare, and industrial applications, with attractive valuation and positive momentum. Rapid adoption of AI models and applications, plus historic productivity gains, suggest robotics and humanoid robots will see similar exponential uptake.

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BOTZ offers broad exposure to robotics and AI. The ETF leans heavily toward industrials and intentional companies, with low semiconductor exposure. It's a refreshing change. However, performance lags peer AI/robotics ETFs.

Maybe it's just my perception, but it feels as if innovation is truly accelerating. In just the last two years, we've experienced the integration of seemingly magical artificial intelligence into everyday life, major breakthroughs in quantum computing, and now, the emergence of humanoid robotics on the commercial stage.

One theme emerging from the first quarter earnings season is that the AI revolution is alive and well. Many companies, like Microsoft Corp. NASDAQ: MSFT and Meta Platforms Inc. NASDAQ: META, confirmed significant capital expenditure (CapEx) programs focusing on building out the AI infrastructure.

BOTZ caught my attention after the P/E contraction from 37x to 29x in just a few months. It has a strong concentration in Japan (over 30%), which I consider a positive factor from a forward-looking perspective. It focuses on automation, so although its name includes AI and robotics, it is not 100% tech but has a well-diversified industry breakdown.

ETFs that help investors minimize the heft of Big Tech stocks, or altogether avoid seven closely watched megacap companies, have outperformed in the past month.

AI technologies are transitioning from a fad to a cornerstone of the new economy. AI's integration into various sectors is becoming a reality, evidenced by growth projections in data center. BOTZ is diversified across Capital Goods, hardware, and healthcare, reducing valuation premiums due to lower concentration in software and semiconductors. With a fair valuation, the market may be underestimating the time in which technological innovations in robotics can be implemented.

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