‘A tsunami effect’: 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 business is seeing alternatives from the controversial know-how.

In response to ROBO World CIO William Studebaker, the financial advantages may very well be staggering.

“You are going to see a tsunami impact by way of costs coming down because of deflationary pressures from these applied sciences,” he instructed 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 World Robotics and Automation Index ETF, which is up 12% to this point this 12 months. 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 progress,” 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.

“For those who take a look at the businesses and international locations 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 12 months. It discovered a file variety of robots had been put in over the course of a 12 months, which is a 22% enhance from the pre-pandemic file set in 2018.

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

“If you consider the variety of knowledge scientists and folks which can be 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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