For investors looking for momentum, ROBO Global Robotics & Automation ETF ROBO is probably a suitable pick. The fund just hit a 52-week high and is up 70.4% from its 52-week low price of $28.27/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
ROBO in Focus
This ETF invests in global companies that are driving transformative innovation in robotics, automation, and artificial intelligence (RAAI), including companies that create technology to enable truly intelligent systems that can sense, process, and act, and companies that apply those technologies to deliver RAAI-enabled products — including robots — to businesses and consumers. It has AUM of $1.28 billion and charges 95 basis points (bps) in annual fees.
Why the Move?
Due to the coronavirus outbreak, the robotics market is flooded with opportunities as robots are being used for jobs such as sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling, and delivering food and medicines. The current conditions seem favorable for the robotic markets in government applications, such as health, security and defense. Also, with the reopening of the global economies, it is believed that robots will see increased usage in industrial, manufacturing, healthcare, logistics, inspection and maintenance, automotive, electronics, and food and beverage areas. This is making funds like ROBO an attractive investment option.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 37.60, which gives cues of further rally.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report