First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

Overview

The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) seeks investment results that correspond generally to the price and yield of the Nasdaq CTA Artificial Intelligence and Robotics Index, providing exposure to companies involved in the AI and robotics sectors. The ETF invests in companies engaged in the development, manufacture, or application of artificial intelligence and robotics.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation. They are known for their innovative thematic ETFs.

Management Expertise

First Trust has a dedicated team with expertise in managing and tracking specialized indices.

Goal

To track the Nasdaq CTA Artificial Intelligence and Robotics Index and provide exposure to the AI and robotics industry.

Investment Approach and Strategy

Strategy: ROBT aims to track the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index.

Composition The ETF primarily holds stocks of companies involved in AI and robotics, covering a global spectrum.

Market Share: ROBT is a leading ETF in the AI and robotics sector, holding a significant portion of the market share.

Total Net Assets (AUM): 2680000000

Key Competitors

• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• ROBO Global Robotics and Automation Index ETF (ROBO)
• iShares Robotics and Artificial Intelligence ETF (IRBO)

Competitive Landscape

The AI and robotics ETF market is competitive, with several ETFs vying for investor attention. ROBT distinguishes itself with its established track record and the specific index it tracks. Compared to competitors, ROBT holds a broader definition of what constitutes an AI/Robotics company. This can lead to more diversification, but also potential dilution of pure-play AI/Robotics exposure. Competitors like BOTZ focus on pure-play companies which could yield higher performance during sector booms, but are more volatile.

Historical Performance: Performance varies with the growth of the AI/Robotics sector. Historical data shows fluctuations due to market conditions, but overall, a positive trend in the long run.

Benchmark Comparison: ROBT's performance is generally in line with the Nasdaq CTA Artificial Intelligence and Robotics Index, with slight variations due to fund management and expense ratios.

Expense Ratio: 0.65

Average Trading Volume

ROBT exhibits moderate liquidity, reflecting decent interest in the AI and robotics sector.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively low trading costs.

Market Environment Factors

Economic growth, technological advancements, and increased adoption of AI and robotics solutions positively influence ROBT. Regulatory changes, however, can impose risks.

Growth Trajectory

ROBT has shown a positive growth trajectory, driven by the expanding AI and robotics industries. Strategic adjustments to holdings are made to reflect the changing landscape.

Competitive Edge

ROBT benefits from being an early mover in the AI and robotics ETF space, establishing a strong brand recognition. The ETF leverages the Nasdaq CTA Artificial Intelligence and Robotics Index. The fund's experienced management team further enhances its competitiveness. Its focus on a broad range of companies involved in AI and robotics is a major advantage. Overall, this creates a sustainable competitive advantage.

Volatility

ROBT exhibits moderate volatility, reflecting the nature of the technology sector.

Market Risk

Market risk is present, especially due to the cyclical nature of the technology industry and potential regulatory impacts on AI and robotics.

Ideal Investor Profile

ROBT is suited for investors seeking exposure to the AI and robotics sector, with a moderate risk tolerance. Investors who believe in the long-term growth potential of the AI and robotics industry may find it attractive.

Market Risk

ROBT is more suitable for long-term investors who can tolerate the volatility associated with growth-oriented technology stocks.

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) offers exposure to companies engaged in the development, manufacture, or application of artificial intelligence and robotics. It tracks the Nasdaq CTA Artificial Intelligence and Robotics Index and holds stocks of companies in the AI and robotics sector. ROBT has a moderate volatility and a tight bid-ask spread. The ETF is more suited for long-term investors seeking exposure to the long-term growth potential of the AI and robotics industries, with a moderate risk tolerance and a belief in its long-term growth potential. It is one of the leading ETFs in the robotics and AI sector.

Data Sources:

• First Trust Website
• Nasdaq Website
• ETF.com
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.