Investing In Artificial Intelligence

Artificial intelligence tends conjures up things like cyborgs, but in reality, modern day AI is increasingly intelligent machines and software algorithms designed to make communication between devices easier, or improve interfacing between workers and machinery. It’s not the Terminator. Yet.

AI is now expected to be a disruptor in manufacturing, media, advertising, financial services, healthcare, retail, transportation, and automotive with self-driving cars that may still be a decade away.

Driven by a growing range of applications, the global artificial intelligence market is forecast to rise at a compound annual growth rate of 62.9% from now until 2022, according to a report by MarketsandMarkets.

We didn’t look under the hood of that report, but we did find a relatively new AI and robotics ETF that is clobbering the S&P 500 (SPY 243.09 -3.85 -1.56%) year-to-date.

The Global X Robotics and Artificial Intelligence ETF (BOTZ 20.07 -0.03 -0.15%) launched late last year. It holds 28 stocks spread out across Japan, Europe and North America. Its top U.S. listed holdings include Intuitive Surgical (ISRG 973.10 -15.80 -1.60%), ABB Ltd. (ABBN 22.25 -0.23 -1.02%), Trimble (TRMB 37.21 -0.07 -0.19%) and Mobileye (MBLY 63.53 0.00 0.00%).

“Robotics & AI, FinTech, and the Internet of Things are among the most significant emerging technological trends in the world,” said Jay Jacobs, director of research of Global X at the time of its launching in September. “Our aim is to provide investors with the tools to efficiently gain exposure to the companies that are well-positioned to grow from these technological revolutions.”

By 2020, the robotics industry is expected to grow to a total of $83 billion, and the AI market is expected to grow from $420 million in 2014 to over $5 billion by 2020.

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