If you're interested in artificial intelligence (AI) but aren't sure how to start investing, a thematic exchange-traded fund (ETF) might be the answer.
These ETFs make it easy because they do the stock picking for you, following a set index or the fund manager's research. A good example is the Global X Robotics & Artificial Intelligence ETF (BOTZ -1.14%).
If you're thinking about adding this ETF to your investment portfolio, this article will explain how it works, what it holds, and the risks you should consider.
What is BOTZ?
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%.
Key facts and stats
Key facts and stats about BOTZ
The Global X Robotics & Artificial Intelligence ETF, trading under the ticker symbol BOTZ, is listed on the Nasdaq and launched on September 12, 2016. This fund is classified as a thematic technology-focused global equity ETF, and currently manages $2.7 billion in assets under management.
Exchange-Traded Fund (ETF)
How to invest
How to buy BOTZ
To buy Global X Robotics & Artificial Intelligence ETF (BOTZ) (or any other ETF), follow these steps to ensure a smooth transaction:
- Search for BOTZ: Enter "BOTZ" in the search field of your brokerage app. This is the ticker symbol for the ETF, and it will bring up the trading page for this specific fund.
- Decide on the number of shares: Think about how much you want to invest and calculate how many shares that equates to, based on the current share price of BOTZ.
- Choose an order type: If you're okay with buying at the current market price, select a market order option. Your order will execute at the best available price. If you want to specify the maximum price you're willing to pay, choose a limit order. This helps manage costs in volatile markets.
- Place your order: Review the details of your order to ensure everything is correct, then submit it. Your order will fill at your specified price or better if you chose a limit order, or at the current market price for a market order.
Holdings
Holdings of BOTZ
Global X Robotics & Artificial Intelligence ETF (BOTZ) currently manages a portfolio of 50 holdings with a weighted average market capitalization of $398 billion, indicating a mega-cap skew. Companies within the portfolio skew heavily toward growth styles with elevated price-to-earnings (P/E) and price-to-book (P/B) ratios of 29.27x and 3.54x, respectively.
The ETF is heavily concentrated in the information technology sector, which makes up 43.9% of its assets, followed by industrials at 37.9% and healthcare at 11.7%.
Geographically, the United States represents the largest share at 49.8%, with Japan at 28.8% and Switzerland at 9.5%.
Among its notable top holdings are Nvidia (NVDA 0.67%), a leading player in graphics processing units (GPUs) crucial for AI computations, and Intuitive Surgical (ISRG 0.13%), renowned for its robotic-assisted surgical systems, which exemplify the integration of robotics in healthcare.
Pros and cons
Pros and cons of investing in BOTZ
Investing in BOTZ comes with several advantages. One of the biggest benefits is access to international robotics and artificial intelligence companies that are difficult for U.S. investors to buy directly. The fund includes a wide mix of Japanese, Swiss, and Chinese names, all priced in U.S. dollars, which makes it convenient for domestic portfolios. It's also tax efficient, with a very low 30-day SEC yield of just 0.03%, and maintains strong liquidity, trading with a 30-day median bid-ask spread of 0.03%.
However, BOTZ also has its drawbacks. The fund carries a relatively high expense ratio of 0.68%, which is expensive compared to broader index ETFs. It is also underweight U.S. stocks, which make up only about 50% of the portfolio, limiting exposure to key American tech names. BOTZ also notably lacks many of the Magnificent Seven stocks driving AI momentum, with Nvidia being the only major inclusion from that group.
Should I invest?
Should I invest in BOTZ?
When considering an investment in Global X Robotics & Artificial Intelligence ETF (BOTZ), it's crucial to determine if you specifically want to overweight in AI and robotics. Although broad market indexes like the S&P 500 already include major AI and robotics firms, BOTZ focuses intensely on this sector.
Decide whether the selection criteria of the ETF's index align with your investment philosophy. This means evaluating if the index's approach to selecting companies -- those that derive significant revenue from AI and robotics -- truly captures the leaders in this innovative field and if it's likely to continue doing so effectively.
If you believe in the potential of AI and robotics and agree with how BOTZ targets these companies, the next step is to consider how much of your portfolio should be allocated to this ETF. Given its thematic focus, BOTZ is ideally positioned as a satellite holding rather than a core investment. This allows you to benefit from its specialized exposure while maintaining a diversified portfolio.
Decide on the percentage of your total investment that you're comfortable dedicating to this theme, considering both the growth potential and the risks of concentrating on a specific theme.
Dividends
Does BOTZ pay a dividend?
Currently, BOTZ does distribute dividends, as indicated by its 30-day SEC yield of 0.06% as of August 6. These are paid on a semiannual basis.
However, given its low yield and the focus on growth industries that typically reinvest profits rather than pay dividends, this fund may not be the right choice if you're specifically seeking a dividend-paying ETF.
Expense Ratio
Expense ratio
What is BOTZ's expense ratio?
As with many thematic ETFs, BOTZ carries a relatively high expense ratio, currently set at 0.68%. For an investment of $10,000 in BOTZ, this expense ratio translates to an annual cost of $68.
It's important to remember that you do not pay this fee directly out of your pocket; rather, it is deducted from the fund's assets, which affects the net returns of your investment indirectly.
Historical performance
Historical performance of BOTZ
Here's a look at how both the market price and net asset value (NAV) of Global X Robotics & Artificial Intelligence ETF have performed over trailing one-, three-, and five-year periods.
Figures represent total returns (share price plus reinvested dividends, if any) for the quarter that ended on June 30, 2025:
| 1-Year | 3-Year | 5-Year | |
|---|---|---|---|
| BOTZ Market Price | 6.09% | 17.35% | 6.67% |
| BOTZ NAV | 6.16% | 17.30% | 6.64% |
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The bottom line
The bottom line on BOTZ
Global X Robotics & Artificial Intelligence ETF (BOTZ) suits a very specific investor profile: someone with a high risk tolerance who is bullish on the long-term prospects of AI and robotics. It offers global diversification with a focus on sectors like technology, healthcare, and industrials.
However, potential investors should be aware of the drawbacks associated with BOTZ. Its high expense ratio of 0.68%, concentrated holdings, and lack of consistent dividends make it less suitable as a core portfolio holding.
FAQ
Investing in BOTZ FAQ
How to buy BOTZ ETF?
Search for the ticker "BOTZ" in your brokerage account, specify the number of shares you want, and choose your order type (market or limit).
Is BOTZ ETF a good investment?
BOTZ may be suitable for investors with a high risk tolerance looking to increase their exposure to AI and robotics, but may not be ideal as a core holding due to its concentration and volatility.
What stocks are in the BOTZ ETF?
BOTZ currently holds 50 stocks, mainly from the United States, Japan, and Switzerland, focusing on sectors like technology, healthcare, and industrials; major holdings include Nvidia and Intuitive Surgical.
How to invest in robotics and artificial intelligence?
You can invest in individual tech sector stocks or opt for thematic ETFs like BOTZ that specialize in robotics and artificial intelligence.
Is BOTZ suitable for long-term or short-term investment?
BOTZ is suitable as both a long-term satellite holding and as a liquid instrument for trading momentum in the AI sector.
