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ETF fund manager bets on the robot boom

Synthetic intelligence is not only a sizzling subject in Hollywood.

Whereas horror robotic film “M3gan” racks up thousands and thousands on the winter field workplace, the ETF trade is seeing alternatives from the controversial expertise.

In response to ROBO International CIO William Studebaker, the financial advantages might be staggering.

“You are going to see a tsunami impact by way of costs coming down on account of deflationary pressures from these applied sciences,” he advised CNBC’s “ETF Edge” on Wednesday. “It is in industrial manufacturing, well being care, AG [agriculture], safety and surveillance … and others.”

Studebaker manages the ROBO International Robotics and Automation Index ETF, which is up 12% up to now this yr. The exchange-traded fund’s holdings embrace IPG Photonic, Zebra Applied sciences, Rockwell Automation and Teradyne.

“I’ve excessive confidence that is going to be very additive to our economies globally, and importantly, simply producing new development,” he added.

Rise of the robots and jobs

There’s widespread concern AI will come on the expense of jobs. However Studebaker contends that threat is overblown.

“In the event you take a look at the businesses and nations which have the very best utilization of automation — Guess what? They’ve the bottom unemployment charges,” he famous.

The Worldwide Federation of Robotics reported a milestone final yr. It discovered a report variety of robots have been put in over the course of a yr, which is a 22% improve from the pre-pandemic report set in 2018.

Studebaker suggests the robotic growth continues to be in its early innings.

“If you consider the variety of knowledge scientists and other people which are skilled in AI globally, it is a de minimis determine,” Studebaker mentioned. “[The AI surge is] going to take a very long time for this to occur.”


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