What is BOTZ?
Global X Robotics & Artificial Intelligence ETF (BOTZ) is a thematic ETF, which means it targets specific trends or industries narrower than broad sector ETFs like those for technology or health.
Specifically, this Global X ETF focuses on companies involved in AI and robotics. It's a passive ETF that replicates the holdings of the Indxx Global Robotics & Artificial Intelligence Thematic Index. This benchmark selects stocks from companies expected to benefit from the increased adoption and utilization of robotics and AI. It applies several criteria: Companies must be domiciled in developed markets, have a market cap of at least $300 million, and meet minimum trading volumes and free float requirements.
The index focuses on four sub-themes: Industrial Robots and Automation, Unmanned Vehicles and Drones, Non-industrial Robotics, and Artificial Intelligence. Only companies that derive more than 50% of their revenue from these areas or have their primary business in these segments are considered pure-play robotics and AI companies and are eligible for inclusion. The final portfolio is formed from the top pure-play robotics and AI companies by market capitalization, up to a total of 100 holdings.
The index uses a modified market-cap weighting scheme at reconstitution, with a single stock cap of 8% and an aggregate cap of 40% for all components weighing more than 5%. All other stocks are capped at 4.5%.
