John HoodRobo-Global Robotics and AutomationROBOCOMMENTSep 01, 2017

His favourite US ETF, which holds AI and automation. Canada doesn't have an ETF like this. None of ROBO holdings are in Canada, so it gives you foreign exposure.

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.

BOTZ or ROBO? He's fine with ROBO, but doesn't know BOTZ. ROBO contains A.I. companies, both great and small, so keep that in mind.

It's really specialized. It's pricey with a 0.75% MER. There are 100 positions in it, all robot/AI companies. It's fairly new. Be careful with this one. Sure, there's a lot of scientific knowledge within these companies, but that's doesn't necassarily translate into profit.

This is more about artificial intelligence. It’s an exciting area and as a bet, he wouldn't mind investing in something like this.

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.

He likes this and thinks it is a good ETF. You buy this and hold it as the industry evolves. This is about 40% US and 30% Japan. It’s a space where we are obviously going to see some growth, and hopefully the company they’ve selected are appropriate.

Robo-Global Robotics and Automation (ROBO-Q) or Global X Robotics (BOTZ)? He likes robotic ETF’s that are spread around a little, a little bit more diversified. Either one would be fine. If you are comfortable with that level of risk, they are fine.

It is not just ROBO devices, but also a bunch of medical devices companies. Institutions are getting into it in a big way. It is an interesting play, but not for older investors, which he has.

If you look at how corporations are transforming themselves, they want to hire robotics instead of labour. He is not sure Trump’s jobs are ever coming back. Corporations will choose automated routes rather than labour. He would play this theme in the future.

This is a pretty niche ETF, and when he is constructing client portfolios, he is looking for bigger themes. However, he thinks this is going to be a big theme in the future. In this post crisis environment, any industry that is disruptive or creative and inventive, will do well in the future. This is on his radar, but he is waiting for this to become a bigger industry.