CGC - 4 Thematic ETFs to Buy in 2020
The pandemic hasn't changed common sense investment advice with regard to asset allocation, but out of dark times often comes unusual opportunity. There are a number of burgeoning industries set to grow from the affects of coronavirus, so an investigation of attractive Exchange Traded Funds(ETFs) is worth starting. There is a good chance we look back at this moment in history and wish we had been a part of these industries at their genesis.
I greatly value simplicity when it comes to investing, so while you always have the option of buying individual stocks, it's much more convenient to simply purchase a sector or thematic ETF if you're bullish on that particular industry. Additionally, thematic ETFs allow you to diversify your risk across many companies, so the major losers are offset by the major winners. The ETFs mentioned below do not comprise core portfolio holdings, but they can be added as a supplement to an already diversified portfolio. Disclaimer: some of the more popular ETFs do come with healthy expense ratios, but costs may be justified if the underlying portfolio provides the exposure you're looking for.
For those feeling optimistic about the future of robot adoption and utilization, Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ) provides exposure to some of the most innovative companies in the space like ABB Limited, Nvidia, and Fanuc Ltd. There is little debate that robots will continue to replace human-performed tasks in and out of the workplace. This ETF provides a medium to express that view at an expense ratio of 0.68% -- expensive relative to broad market ETFs, but the fund creates a convenient way to invest in a high-growth area. If you've ever read Martin Ford's "Rise of the Robots", this ETF will seem quite attractive.