OK, this is a 3X leveraged ETF.

The Robotics & AI Bull 3X ETF (NYSEARCA: UBOT) with the rather characteristically chosen ticker symbol has outperformed the S&P 500 by 35% since the March 16 low.

This leveraged ETF UBOT seeks a return that is 300% the return of its benchmark index for a single day. It tracks the Indxx Global Robotics and Artificial Intelligence Thematic Index (IBOTZNT). This index provides exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence.

Less human contact, more AI and robots

“Although the world is still processing the reality of what modern life looks like under threat of a global pandemic, one thing that seems clear to Wall Street is that it will involve far less human contact and a good deal more computerization and automation,” says a Direxion Investments article.

“Not coincidentally, the Daily Robotics, Artificial Intelligence & Automation Index Bull 3X Shares ETF (UBOT), has seen particular growth over the past few months. The daily leveraged ETF, which aims to replicate 300% of the daily performance of IBOTZNT, has grown by more than 130% over the past two months,” says the article.

A ‘new normal’ has been precipitated by the COVID-19 pandemic. Workplaces, homes, transportation, food service, hospitality, entertainment, and food chains have been transformed, perhaps permanently.

Technologies such as AI, robotics, cloud computing, video conferencing are suddenly seeing their day in the sun.

The pandemic is showing no signs of slowing down and instead is resurging in many parts of the world. The transformation in people’s lives and businesses may, therefore, be long term.

The Robotics & AI Bull 3X ETF (NYSEARCA: UBOT)

Investors wishing to ride the trend via UBOT should note that its net expense ratio is 1.29%. It currently quotes at $133.90.

Technically, the ETF has crossed above its 200-day Moving Average and maybe in a long-term bullish uptrend. The 50-day Moving Average has also crossed above the 200-day in a bullish golden cross pattern.

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