John HoodGlobal X Robotics & AI ETFBOTZCOMMENTJun 30, 2017

Good exposure to A.I. boom and robotics bubble.
Risky bet in tech space.
Not good for defensive investors.
Not any yield, but provides opportunity for large capital gains. 

Medical robotics? He does not know TMD-T well. He plays the space through and ETF of BOTZ-Q. He prefers ISRG-Q, if you wanted an individual holding.

It looks good with a base just below $22. It has $24 written on it. Don't sell it. Wait. It's been a nice trading range above $22.

AI is a very unique sector of the economy and a great up and comer. An aggressive play. Don’t put a lot of money in it given the risk.

BOTZ vs. ROBO: The difference is that ROBO is an equal-weighted ETF and BOTZ is market-cap weighted. ROBO you get more mid- and small-cap, with maybe a better long-term return. But essentially both ETFs are very similar.

Very highly talked space: robotics and AI. Very volatile. Many small cap. Long-term this is the right space. Like the name but be careful about the volatility.

BOTS-Q vs. ROBO-Q. A good homerun in the market. The ETFs have been around since 2016 but have rocketed. You pick them in Canada or the US. BOTZ-Q is a bit more focused. AIEQ-N is run by artificial intelligence. It is actively managed by a robot.

Continue adding to a technical stock portfolio, or buy this ETF? This is a very specific play on robotics, a niche within tech in and of itself. It depends on what percentage of your portfolio is technology stocks, and what size would you make BOTZ. There are 2 investment themes that have been tremendous home runs over the past 12 months. One is investors pricing in what is going to happen to robotics and how that is going to be disruptive to the labour economy, and the other one is artificial intelligence (AI). If you own a position in this ETF, he would continue to hold, but he would be careful about chasing this investment here.

Is robotics a good sector?The macro trend in robotics is definitely a real one. Unfortunately, a lot of people know about it. Manufacturing in the US, since the financial crisis, is up about 20%, and yet the rise in employment is only up 5%. This is a good theme to play long-term, but wait for a pullback.

Has never really been a big fan of having to use ETF’s to go into catchy themes. At first blush, he thought this was a silly idea, but when looking at the underlying holdings, they are all actually pretty attractive. He would suggest you play this for a little while, but thinks some of the underlying themes, if you did a bit more research, would be much more attractive.