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, before fees and expenses, of the Nasdaq CTA Artificial Intelligence and Robotics Index. It focuses on companies involved in the artificial intelligence and robotics industries, aiming for capital appreciation. The ETF invests in a global portfolio of stocks, with a tilt towards technology and industrial sectors.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation for delivering innovative investment solutions.

Management Expertise

First Trust has a dedicated team of investment professionals experienced in managing thematic ETFs, including those focused on technology and innovation.

Goal

To provide investment results that correspond generally to the price and yield, before fees and expenses, of the Nasdaq CTA Artificial Intelligence and Robotics Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Nasdaq CTA Artificial Intelligence and Robotics Index, a rules-based index composed of companies engaged in the artificial intelligence and robotics industries.

Composition The ETF primarily holds stocks of companies involved in AI and robotics, spanning various sub-sectors such as robotics, automation, AI hardware, and AI software. The portfolio includes both developed and emerging market equities.

Market Share: ROBT holds a significant share within the AI and robotics ETF segment, although competition is increasing.

Total Net Assets (AUM): 251000000

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 offering exposure to similar themes. ROBT differentiates itself through its specific index methodology. Advantages include a focus on pure-play AI and robotics companies; disadvantages may include potentially higher volatility due to sector concentration compared to more diversified ETFs. ROBT does not fully represent the overall market share of the sector because the competitors mentioned are only a few out of many others in the market.

Historical Performance: Data unavailable. Consult financial resources for historical performance data.

Benchmark Comparison: Data unavailable. Consult financial resources for benchmark comparisons.

Expense Ratio: 0.65

Average Trading Volume

ROBT exhibits moderate liquidity, with an average daily trading volume adequate for most investors.

Bid-Ask Spread

The bid-ask spread for ROBT is generally tight, indicating relatively low transaction costs.

Market Environment Factors

Economic growth, technological advancements in AI and robotics, government policies supporting innovation, and investor sentiment towards growth stocks significantly influence ROBT's performance.

Growth Trajectory

ROBT's growth trajectory is tied to the broader adoption of AI and robotics across various industries. The ETF's strategy and holdings can be adjusted to reflect new trends and emerging technologies within the sector.

Competitive Edge

ROBT's competitive edge lies in its focused exposure to companies directly involved in AI and robotics, as defined by its index. This targeted approach may appeal to investors seeking pure-play exposure. The ETF also benefits from First Trust's established reputation as an ETF provider. Its holdings are monitored and rebalanced to adapt to the ever-evolving AI and Robotics landscape ensuring investments are aligned with market opportunities.

Volatility

ROBT exhibits moderate to high volatility due to its concentration in the technology and industrial sectors, both of which can be sensitive to market fluctuations.

Market Risk

Specific risks associated with ROBT include technology sector risk, concentration risk (due to holding a limited number of companies), and risks related to international investing, including currency fluctuations and political instability.

Ideal Investor Profile

The ideal investor for ROBT is someone with a long-term investment horizon, a high risk tolerance, and an interest in the growth potential of the AI and robotics industries.

Market Risk

ROBT is best suited for long-term investors seeking capital appreciation and willing to accept higher volatility. It may not be suitable for risk-averse investors or those seeking stable income.

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) offers targeted exposure to companies involved in the rapidly growing AI and robotics industries. The ETF tracks a rules-based index, providing investors with a focused investment strategy. Its moderate volatility and expense ratio should be considered by investors looking to capitalize on emerging technologies. ROBT's concentration in the technology and industrial sectors carries risk, but it is well-suited for investors with a long-term perspective and high risk tolerance looking to benefit from the long-term growth potential of AI and robotics.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.