Thematic funds are slowly claiming their dominance in the investment world. Notably, the collective assets under management in these funds have risen nearly three times to roughly $195 billion globally from $75 billion, over a period of three years, ending Dec 31, 2019 (per a Morningstar report). Moreover, the figure is equivalent to around 1% of total global equity-fund assets, rising from the 10-year ago level of 0.1%. Also, the options available for thematic investing have increased over time. By the end of December 2019, around 923 thematic funds were available for investing in the market (per a Morningstar's global database), with 154 new thematic funds being added globally in 2019.
For investors looking for momentum, iShares Robotics and Artificial Intelligence Multisector ETF IRBO is probably a suitable pick. The fund just hit a 52-week high and is up 71.9% from its 52-week low price of $19.10/share. Let's take a look at the fund and its near-term outlook to gain an insight into where it might be headed: This ETF seeks to track the investment results of an index composed of developed and emerging market companies that could benefit from the long-term growth and innovation in robotics technologies and AI. It has AUM of $176.1 million and charges 47 basis points (bps) in annual fees. Due to the coronavirus outbreak, the robotics market is flooded with opportunities as robots are being used for jobs such as sanitizing hospitals, homes and workplaces along with monitoring, surveying, handling, and delivering food and medicines.
Intel Corporation INTC is gearing up to become a major provider of solutions for the Artificial Intelligence (AI) market, which is anticipated to be worth $5.05 billion by 2020 as per MarketsAndMarkets.com. The company recently announced a plethora of products, technologies and investments, which will augment its presence in the AI market. Additionally, Intel expects the next generation Xeon Phi processors to deliver up to four times better performance than the previous generation for deep learning. Code-named Knights Mill, the co-processor will be available in 2017. Acquisitions to Expand Footprint Apart from Nervana, the Movidius acquisition also expands Intel's AI product portfolio.
Globally, thematic investing has tripled over the past five years to around $40.76 billion, per Morningstar Inc. This is steadily taking over the investment world, largely due to the introduction of theme-based funds and also for its long-term and easy-to-comprehend approach. Thematic investing requires investment in companies that can benefit from the technological, demographic and environmental changes (read: Top ETF Areas for 2020). Let's take a look at some of the themes that are currently in vogue. We are living in an era that is largely dominated by AI applications and technological advancements.
Adesto Technologies Corporation IOTS fourth-quarter 2019 results are expected to benefit from strong demand for the company's IOT related offerings. For the quarter, the company expects revenues in the range of $32-$35 million. The Zacks Consensus Estimate for revenues is currently pegged at $33.6 million, indicating growth of 19.5% from the year-ago quarter. The consensus mark for fourth-quarter earnings has been steady at 4 cents over the past 30 days. The company had reported loss of 4 cents in the year-ago reported quarter.