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A Rocking Robotics ETF For 2020

Robotics and artificial intelligence (AI) investments regained their leadership roles in 2019. Just look at the Indxx Global Robotics and Artificial Intelligence Thematic Index, which gained almost 32% last year. Data points augur well for continued bullishnes

Benzinga · 01/03/2020 19:33

Robotics and artificial intelligence (AI) investments regained their leadership roles in 2019. Just look at the Indxx Global Robotics and Artificial Intelligence Thematic Index, which gained almost 32% last year. Data points augur well for continued bullishness in these segments in 2020.

What Happened

Tactical traders looking to take advantage of short-term moves in the AI and robotics niches may want to consider the Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Share (NYSE: UBOT). UBOT is designed to deliver triple the daily returns of the aforementioned Indxx Global Robotics and Artificial Intelligence Thematic Index.

UBOT has tailwinds right now as the robotics market probably ascends to north of $83 billion this year, up from $63.9 billion last year.

“The global market for robots is expected to grow at a compound annual growth rate (CAGR) of around 26 percent to reach just under 210 billion U.S. dollars by 2025. It is predicted that this market will hit the 100 billion U.S. dollar mark in 2020,” notes Statista.

Why It's Important

Understanding some of the other AI and robotics catalysts pertaining to UBOT is pivotal to traders' success with the leveraged fund. Fortunately, the healthcare catalyst is straightforward and potentially meaningful.

“All things AI have been popular year to date,” said Direxion Managing Director Sylvia Jablonski. “Why? Artificial intelligence and Robotics touches literally everything Medical – noninvasive robotics, Factories – sensors, automation to reduce cost, increase efficiency.”

Wider-ranging implications for the healthcare sector bode well for UBOT as well.

“Healthcare might be a good spot to look – 250 million people will be over 65 in  the net decade,” adds Jablonski.

What's Next

AI markets such as enterprise software, autonomous vehicles and many more are positioned for exponential growth in 2020, providing more reasons for traders to keep UBOT on their radars.

“Major drivers for the market are growing big data, the increasing adoption of cloud-based applications and services, and an increase in demand for intelligent virtual assistants,” according to research firm Markets and Markets.

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