This Leveraged ETF Is Up Almost 50% the Past 3 Months

Big tech’s strong fourth-quarter rally behind artificial intelligence (AI) has been well-documented, but the big question was whether it could sustain the run. So far it has, with the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT) up almost 50% over the past three months.

The fund seeks daily investment results that equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. That index aims to provide exposure to companies in developed markets expected to benefit from the growing adoption and use of robotics and/or AI.

UBOT wasn’t immune to the equity stumble to start the new year, but it has recovered since then. With AI set to be a recurring theme for the rest of the year and beyond, it’s easy to see why. “Magnificent Seven” members like Amazon and Microsoft had strong revenues to pair with positive future guidance thanks to increased use of AI applications.

UBOT Chart

UBOT data by YCharts