The fields of robotics, automation and Artificial Intelligence (AI) are some of the fastest growing and most exciting in the world. Despite the enormous opportunities presented by these sectors, many South Africans are unaware of how to access these specialist sectors.
Unless you are an expert in these fields and are able to identify “the next big thing”, one of the easiest ways to access these markets is to buy one of the Exchange Traded Funds (ETFs) focused in these areas.
Three ETFs that we identified are:
Global Robotics and Automation Index ETF (ROBO)
Listed on the Nasdaq, ROBO was the first robotics and automation ETF to market, providing investors with a liquid, cost-effective and diversified way to gain access to rapidly evolving robotics technology and AI.
Launched in October 2013, ROBO has 83 equity holdings across 14 developed and emerging market countries with United States (40%) and Japan (30%) making up the largest holdings. The fund has returned an annualized 11.9% since inception.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
Also on the NASDAQ, this ETF seeks to invest in companies that potentially stand to 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.
Listed in September 2016, the fund has returned a stellar 44% in its first year. The fund is heavily exposed to Japanese technology stocks (45%), with the US coming in at 26%.
Sygnia Itrix 4th Industrial Revolution Global Equity ETF
A new listing from South African based asset management firm Sygnia, this is the only one of the 3 listed on the JSE.
This ETF was listed in Launched in December 2017 and the objective of this portfolio is to provide simple access to investors who wish to track the movements of the Kensho New Economies Composite ℠ Index (KNEX). The main idea behind this index is to allow for the investment in the so-called “Fourth Industrial Revolution” technologies. These technologies include autonomous vehicles, cleantech, drones, 3D printing, robotics, nanotechnology, smart buildings, virtual reality, cybersecurity, space and wearables, among others.
How do I invest in these?
The Sygnia ETF can be accessed through a local FSP or stockbroker providing you with access to JSE-listed shares. If you need assistance with accessing the offshore / NASDAQ ETFs, please e-mail marc@decusatio.coza and one of our problem-solvers will contact you.
Passionate about investing in SA tech?
If you are passionate about investing in high-growth technology businesses and would like to learn about specialist funds providing you with access to this sector, please complete the form below and our network will send you further information.
