Tech | Automation & Robotics
Share baskets trading
Tech | Automation & Robotics
Share baskets trading
General Description
The CMC Markets Automation & Robotics Share Basket tracks the performance of an initial 15 shares with exposure to the automation & robotics industry chosen by the Share Basket Review Panel.
The Share Basket was created with a base level of 4,000 as of 31 December 2019.
Automation & Robotics is one of the 16 trending share baskets you can now trade on. Trading share baskets allows you to diversify your risk, so a sharp movement in one company’s share price doesn’t have a disproportionate effect on the overall holding.
How will robotics and automation impact industries?
The reason is obvious: the automation of more and more areas of the economy is causing concern not only among people, but also among states that are worried about declining tax revenue. So far, however, this has been an imaginary concern. Throughout history, people have used machines to automate things that they used to do themselves. Just think of automatic production lines for cars or computers.
Why invest in robotics and automation?
There are a number of potential pros and cons with regards to the potential future direction of the robotics and automation industry.
THE BULLISH STANCE
- Automation creates a new mass market that increases productivity
- Companies with the right products help other companies to do more with less, thereby meeting the goals of their shareholders
- The environmental aspect promotes using resources more sparingly, and automation helps to achieve environmental goals
- Automation addresses the shortage of skilled workers, since qualified and complex work can be done by robots
- Robots help automate repetitive and boring tasks, which can help people take on more important tasks
- Job security can be improved through automation
THE BEARISH VIEW
- Governments could slow down growth in the industry through regulation or taxes
- Large job losses due to automation could cloud public perception and slow growth
- Devices can only do what they are programmed to do, while humans are able to adapt
- If the area of ??application for the machine ceases to exist, it is likely to become redundant
- The electricity requirements and potential pollution
Index constituent weightings
| Component | Initial Weighting |
| Intuitive Surgical | 14.00 |
| NVIDIA | 14.00 |
| Qualcomm | 14.00 |
| Service Now Inc | 14.00 |
| Autodesk | 4.00 |
| Cadence Design | 4.00 |
| Deere | 4.00 |
| Illumina | 4.00 |
| Microchip Tech | 4.00 |
| Rockwell Automat | 4.00 |
| Teledyne Technologies Inc | 4.00 |
| Teradyne | 4.00 |
| Varian Medical | 4.00 |
| Xilinx | 4.00 |
| Zebra Technologies Corp | 4.00 |
▼
Review under Share Basket Disruption Event and Share Basket Rebalancing.
Trading hours
| Day | Trading hours |
| Mon | 14:30-21:00 |
| Tue | 14:30-21:00 |
| Wed | 14:30-21:00 |
| Thur | 14:30-21:00 |
| Fri | 14:30-21:00 |
▼
Trading hours shown in London local time, please check under product overview for more details
*Disclaimer: Century Financial Consultancy LLC (“CFC”) is Limited Liability Company incorporated under the Laws of UAE and is duly licensed and regulated by the Emirates Securities and Commodities Authority of UAE (SCA). Services offered by CFC include financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should trade only with the capital you can afford to risk or lose. Before deciding to trade on leveraged products, you should consider your investment objectives, risk tolerance and your level of experience with these products. Trading with leverage carries significant risk of losses and as such margin products are not suitable for every investor, and you should ensure that you understand the risks involved and seek independent advice from professionals and experts if necessary. CFC is not responsible or liable for any result, gain or loss, based on this information, in whole or in part. Refer to risk disclosure on our website.