How Does the Global X Robotics ETF Select Its Holdings?

๐Ÿ” Introduction: Understanding the BOTZ ETF
The Global X Robotics & Artificial Intelligence ETF (ticker: BOTZ) is designed to track the performance of companies involved in the development and production of robotics and artificial intelligence. Launched by Global X Funds, this ETF provides thematic exposure to emerging technologies, allowing investors to benefit from the future of automation without selecting individual stocks.

๐Ÿ“Œ Quick Snapshot:

Feature Detail
ETF Name Global X Robotics & Artificial Intelligence ETF
Ticker BOTZ
Inception Date September 12, 2016
Expense Ratio ~0.68%
Focus Areas Robotics, AI, automation technologies
Benchmark Index Indxx Global Robotics & AI Thematic Index

๐Ÿง  The Selection Process: How BOTZ Picks Its Holdings
The BOTZ ETF does not randomly select stocks. Instead, it follows a strict and methodical approach to ensure only relevant, high-quality companies are included.

  1. Tracking a Purpose-Built Index
    BOTZ follows the Indxx Global Robotics & Artificial Intelligence Thematic Index, which defines the investable universe. This index identifies companies that are either:

Directly involved in the development of robotics and AI, or

Benefit substantially from the adoption of these technologies.

๐Ÿ“ฆ Johnson Box Insight: The selection starts with a thematic screen based on pure-play criteria. Companies must derive at least 50% of their revenues from robotics or AI.

  1. Revenue Relevance Filter
    To ensure authenticity and relevance, a company must derive a minimum threshold of revenue (50%) from areas like:

Industrial robotics

Autonomous vehicles

Machine learning

AI processors

Smart manufacturing

If a firm merely dabbles in AI but derives most income elsewhere, itโ€™s excluded.

  1. Market Capitalization & Liquidity
    BOTZโ€™s holdings must meet minimum market cap and liquidity requirements, such as:

$200 million+ in market capitalization

Three-month average daily turnover thresholds

Must be traded on a developed market exchange

These filters ensure tradability and minimize exposure to high-risk, low-float micro-caps.

  1. Semi-Annual Rebalancing
    BOTZ updates its index twice per year, in March and September. During these reviews:

New companies are considered

Existing holdings are re-evaluated

Weightings are adjusted to reflect market cap (with limits to avoid overconcentration)

โฑ๏ธ Pro Tip: Monitoring these dates can help investors anticipate potential portfolio shifts and trading volumes.

๐ŸŒ Global Diversification
While many AI and robotics firms are based in the U.S., BOTZ includes global companies from:

Japan (Fanuc Corp, Keyence)

Germany (Siemens)

Switzerland (ABB Ltd)

South Korea (Samsung)

This ensures exposure to international innovation hubs.

๐Ÿ’ผ Example Holdings in BOTZ
Company Name Sector Country Role in Robotics/AI
NVIDIA Corp AI Chips USA AI computing leader
Keyence Corp Industrial Automation Japan Factory automation tech
ABB Ltd Robotics Switzerland Global robotics solutions
Fanuc Robotics Japan CNC & industrial robots
Intuitive Surgical Medical Robotics USA Da Vinci surgical systems

๐Ÿง  Key Takeaways
โœ… BOTZ tracks a rules-based index tailored to robotics & AI.

โœ… Revenue from core themes is essentialโ€”at least 50%.

โœ… Filters include market cap, liquidity, and listing exchange.

โœ… Semi-annual rebalancing keeps the portfolio updated.

โœ… Holdings span multiple countries and sectors, creating diversification.

๐Ÿงพ Conclusion
The Global X Robotics & Artificial Intelligence ETF (BOTZ) is more than just a tech-themed basket. It represents a curated portfolio of innovators shaping the future of automation and intelligence. Its selection methodology ensures relevance, quality, and global exposureโ€”all while offering a hands-off way for investors to participate in the AI and robotics revolution. ๐Ÿš€website:https://honestaiengine.com/investing-in-ai-a-closer-look-at-the-global-x-robotics--ai-etf

For anyone interested in future-proof investing, BOTZ is a thematic ETF worth watching.

๐Ÿ™‹โ€โ™‚๏ธ Frequently Asked Questions (FAQs)
๐Ÿค” What is the main criterion for a company to be included in BOTZ?
A company must generate at least 50% of its revenue from robotics or AI-related activities.

๐Ÿ”„ How often is the ETF rebalanced?
Twice a yearโ€”in March and September.

๐ŸŒ Is BOTZ limited to U.S. companies?
No. BOTZ includes global leaders from countries like Japan, Switzerland, Germany, and South Korea.

๐Ÿ’ฐ What is the expense ratio for BOTZ?
The expense ratio is approximately 0.68%, which is typical for thematic ETFs.

๐Ÿ“Š Can individual investors buy into BOTZ?
Yes! BOTZ is publicly traded on the NASDAQ and can be purchased like any stock via brokerages.

๐Ÿ“‰ What risks are associated with BOTZ?
Since it is a thematic ETF, BOTZ can be more volatile and concentrated in specific sectors, which may not always perform in line with broader markets.

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Pub: 15 May 2025 17:49 UTC
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