My BOTZ ETF Review Breaks Down A Popular AI Stock Buy
One of the most talked about emerging stock verticals is AI. Or rather, Artificial Intelligence. For many financial preppers, expanding into this possible emerging market is something they’ve long considered, but weren’t sure where a good starting place would be. Whenever you aren’t sure on whether or not a market would be a good investment, it is best to start with ETFs. An ETF is essentially a type of mutual fund, however, unlike a mutual fund, an ETF is openly traded on the market. So you get the “mutual fund” protection of varied investments but also the upside of daily trading. An ETF will protect you from huge losses (or I should say, it would expose the investor to less risk, but does not fully guarantee anything). If you are interested in something a bit more aggressive, read my how to buy Bitcoin guide.
When it comes to Artificial Intelligence stocks, the price is a major issue for an investor just getting started in this market. Amazon, Facebook, and Apple are all stocks that should likely be tied to artificial intelligence technology from a user standpoint (meaning, they will continue to produce AI products such as Alexa, Siri and so on). But they are priced rather high. Another big company in the AI market is NVIDIA. NVIDIA closed just prior to the Labor Day weekend at just over $170 per share. I would suggest that everyone read my how to survive a stock market crash guide after you read this BOTZ ETF review, as well.
However, as our BOTZ ETF review will show, you can get a piece of NVIDIA and some other emerging artificial intelligence stocks for a cheaper price and still maintain some semblance of security.
As of the date of this post, BOTZ ETF is being traded for $20.62. That’s a fairly solid price for someone wanting some lower risk coverage in the artificial intelligence market.
The first thing we want to do is to look at the BOTZ ETF Holdings. What is this ETF made up of?
BOTZ ETF HOLDINGS
- Keyence Corp | 8.34%
- NVIDIA Corp | 7.79%
- Mitsubishi Electric | 7.77%
- Intuitive Surgical | 7.65%
- Fanuc Corp | 7.21%
- ABB LTD-REG | 6.67%
- Yaskawa Electric Corp | 6.35%
- SMC Corp | 5.04%
- Omron Corp | 4.93%
- Trimble Navigation LTD | 4.85%
NVIDIA, as mentioned prior, is one of the top artificial intelligence stock buys there is, aside from Amazon and Facebook and Apple. It is one of BOTZ ETF’s main holdings. The strength of NVIDIA is that they are the supplier, and in some cases foundation, for the big AI companies like Amazon, Facebook, Microsoft, and Intel. NVIDIA is allowing computers to write their own software.
The con? NVIDIA is the top dog when it comes to computers learning, but they aren’t the only show in town. Intel, even though they have relationships with NVIDIA, could rival them. This is rather an unforeseen territory, speaking honestly, and this is why buying an ETF tends to help protect your interest a bit better.
NVIDIA’s inclusion gives investors a little exposure to one of the most sought after artificial intelligence stocks without creating so much exposure that the investor could lose serious cash.
Intuitive Surgical is another great inclusion into the BOTZ ETF holding. Intuitive Surgical is in the business of building robotic surgical technology. Here’s why they might be the sleeper in this ETF: Many believe that the future of medicine is going to be AI. With super inflated health care already oppressing many common folks, AI could save hospitals from paying out surgeons. Yes, surgeons should be worried, but this is a BOTZ ETF review, not a critical assessment for the future of medical professionals. The fact is, surgery may one day be performed by robots. And if Intuitive Surgical is the supplier of these robots, surely their stock will rise. Another sound benefit to having some investment into Intuitive Surgical is that they aren’t a new AI company, rather, they have been building in this market since 1995. Like I said, Intuitive Surgical might be the sleeper holding in BOTZ.
By percentage, when you buy shares of BOTZ ETF, your largest single holding will be Keyence Corp. Keyence is a Japanese company, so this means shares in BOTZ automatically gives you exposure to emerging, overseas markets. Shares, as of the date of this BOTZ ETF review, are $523.00 per share. That’s heavy lifting financially. Keyence doesn’t exactly create product, they scope it out. They do annual sales of over $3 billion and employs over 5,000 people. Smart vision sensors, barcode production, lasers and fiber optic sensors are some of their main innovations. That’s all heavy AI support.
Interpreting speech and sound is a rather primitive foundational aspect for any artificial intelligence. Mitsubishi Electric is working to create technology that allows machines to separate sound and noise and non-essential speech. In other words, it can improve upon a robot’s ability to distinguish essential commands in noisy environments. Mitsubishi announced this on June 5th, 2017. According to the Mitsubishi presser, “In tests, the simultaneous speeches of two and three people were separated with up to 90 and 80 percent accuracy, respectively.” Additionally, back in 2016, Mitsubishi Electric developed “compact AI.” This technology would eliminate any need for large robust servers and streamline artificial intelligence technology. Essentially, they filter out non-essential info. Mitsubishi Electric claims they can cut down on computation struggles by as much as 90%.
BOTZ ETF Review – Downsides?
BOTZ ETF is a pretty solid buy, in my opinion, however, the downside is that this artificial intelligence ETF does not have the major AI players such as Amazon and Facebook in it. However, that’s why it cost less to buy into. And honestly, you can buy other ETFs that have those major players in them anyway. Botz is an ETF that’s a primary AI buy in and certainly, without the big players, it has some risks. If Facebook or Amazon cuts off NVIDIA, or health care finds other robotic solutions to Intuitive Surgical, this fund could tank. Those are definite possibilities, all things considered. But you aren’t buying a solid Vanguard S&P investment-retirement savings type fund, you are still buying a higher risk ETF. But it is much less risk than straight up buying NVIDIA shares. If you are interested in riskier investments, check out these marijuana penny stocks.
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.
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