Bellwether companies in the portfolio include
Rockwell Automation (NYSE: ROK),
Hiwin Technologies Corp. (TPE: 2049), and
Fanuc Corp. (TYO: 6054). A little over 44% of the portfolio is North American-based, with about
34% in Asia and 19% in Europe. About three quarters of the holdings are in
small- and mid-cap companies, which by definition makes this a higher-risk
This ETF performed well in 2017 with a gain of 44% for the year. It closed
on Dec. 29 at US$41.32, just below its all-time high of US$43.44. The
management expense ratio is 0.95%.
Global X Robotics and Artificial Intelligence ETF (NASDAQ: BOTZ) is a smaller fund than ROBO, with a lower MER at 0.68%. It was launched in
September 2016 and fund holds fewer stocks and makes bigger bets on
individual holdings than ROBO. For example,
Nvidia Corp. (NSADAQ: NVDA) makes up 8.1% of the portfolio closely followed by
Yaskawa Electric Corp. (TYO: 6506) and
Keyence Corp. (TYO: 6861) at 8.0% each. The ETF gained 58.2% in 2017.
Either fund would be suitable for investors who want to take a long-term
position in this exciting sector but don’t want to zero in on individual
companies. But keep in mind that these ETFs are likely to be volatile, so
ask your advisor whether they’d be suitable for your portfolio and risk
tolerance level. Both funds are too new to have any performance history in
If you have a financial or investing question you’d like me to answer, send
it to "firstname.lastname@example.org" and write "Fund Library Question" in the
subject line. Note that I cannot guarantee a personal response, but will
publish the most interesting queries here. – G.P.
Gordon Pape is one of Canada’s best-known personal finance commentators and
investment experts. He is the publisher of
The Internet Wealth Builder and The Income Investornewsletters, which are available through the Building Wealth website.
For more information on subscriptions to Gordon Pape’s newsletters,
check the Building Wealth website.
Follow Gordon Pape on Twitter at
https://twitter.com/GPUpdates and on Facebook at
Notes and Disclaimer
© 2018 by The Fund Library. All rights reserved.
The foregoing is for general information purposes only and is the opinion
of the writer. Securities mentioned carry risk of loss, and no guarantee of
performance is made or implied. This information is not intended to provide
specific personalized advice including, without limitation, investment,
financial, legal, accounting, or tax advice. Always seek advice from your
own financial advisor before making investment decisions.
BUILDING WEALTH WITH GORDON PAPE