This essay was originally published in DailyWealth Trader, a daily trading advisory, and has been adapted. To learn more about this service, click here.
You could hear the gasps when someone set eyes on it...
Mouths were wide open, eyebrows were raised, and there was a mix of shock and surprise on people's faces...
Folks in Times Square weren't sure whether to smile or to take a step back.
After all, what they were seeing was like something out of a Will Smith sci-fi movie. Only this time, there was no real threat taking place... just the promise of the future meeting the present.
A 4-foot-tall humanoid was roaming New York City. The silver and black robot was crossing streets, waving at people, and running around Times Square.
Everywhere, onlookers pulled phones out of their pockets. And I admit, I took my fair share of videos and pictures. But this experience was just an added bonus to the real reason I'd traveled to New York...
I'd been invited to join the robot in ringing the opening bell of the Nasdaq on 43rd Street on June 25. Here's a picture from the ceremony. I'm the second guy to the left of the robot...
It was the first humanoid robot to help open trading on the Nasdaq.
I still can't believe I got to go for such an honor. Today, I'm sharing some things I learned from that trip – and as you'll see, this futuristic market is only in its infancy...
This Robot Is Just the Beginning of a Megatrend
It all started with an e-mail from a friend – Brendan Ahern, the chief investment officer of KraneShares.
You may be familiar with KraneShares. It got its start as an asset manager specializing in Chinese funds well over a decade ago.
Now, there's no partnership between MarketWise and KraneShares. We simply like the way the company builds its funds.
That's why when KraneShares asked me to join in celebrating the launch of its new robotics fund, I didn't hesitate to accept.
Here's another picture of me with the robot at the Nasdaq...
As you can see, this machine isn't intimidating like the ones you'd see in the movies. But it's far more advanced than you might think.
It can shake hands, give hugs, run, carry objects, and more. It's equipped with a camera on top to help it take in information. And with the sensors on its body, it can observe how close it's getting to an object and steer clear.
This technology is only going to get better from here...
With the advancements in artificial intelligence ("AI"), humanoids are able to learn faster than ever before. The end goal here is embodying AI in the robot to help with decision-making.
That means every time the robot operates in the real world, it'll learn from that experience. And it will ultimately be able to take orders while also making its own decisions. It's the spark of a new megatrend.
Sure, the technology is still in its early stages. Estimates put the humanoid robot market around $1.5 billion today. But according to Morgan Stanley, the market could be as big as $5 trillion by 2050. Yes, that's trillion with a "t."
And today, companies like Nvidia (NVDA) and OpenAI are buying humanoids so they can put their technology in the robots and speed up advancement.
We aren't yet at the point where robots are doing all of your unwanted chores for you.
But that world is closer than you may think... And it will go far beyond just helping you around the house.
The potential for using these robots spans all kinds of industries...
Think warehousing, manufacturing and assembly, health care, and even home robotics. That's why the upside for the humanoid industry is so big. Morgan Stanley expects there to be 1 billion humanoids working by 2050.
The 'Picks and Shovels' of the Robotics Revolution
This is what KraneShares' new humanoid fund will help investors profit from...
The KraneShares Global Humanoid and Embodied Intelligence Index Fund (KOID) is the first of its kind.
It's the "picks and shovels" way of profiting from the robotics revolution. You can find companies from every level of the process. For example, Nvidia is in the fund since the humanoids learn on the company's graphics processing units ("GPUs").
KOID also holds companies that mine rare earth metals, create electronics, make machinery, produce gears, and more.
This is not another technology fund with minimal exposure to robotics. Instead, it covers the full universe of making humanoids possible.
If you're looking to get in on this megatrend in its infancy, this is an easy way to profit from the inevitable rise in robotics. And I recommend tracking this market closely as the evolution unfolds.
Good investing,
Chris Igou
Editor's note: Two of the most powerful technologies on Earth have just converged. And according to our colleague Eric Wade, this could change the way we eat, sleep, work, and travel almost overnight... while making some people massive gains. Today, you can learn the name of the one investment harnessing these technologies – which Eric says could easily rise 100% in the next few years.
Further Reading
"We're just scraping the surface of AI's potential to change mathematics," Chris writes. Shares of an AI tech giant recently soared after its chatbot took the gold in the "Olympics of math." And that means double-digit gains could be ahead for this company as AI continues its charge into complex mathematics.
"AI is the new disruptor," Josh Baylin says. With AI-assisted coding, we're seeing a full-blown reset of how software is built. And to thrive in this new era, businesses will need to adapt to this new do-it-yourself model.
