Invest
Will COVID-19 speed up automation and digitalisation?
Investors who are taking a long-term view in disruptive processes are getting market-leading returns in products that could be accelerated due to the COVID-19 outbreak, an industry expert has said.
Will COVID-19 speed up automation and digitalisation?
Investors who are taking a long-term view in disruptive processes are getting market-leading returns in products that could be accelerated due to the COVID-19 outbreak, an industry expert has said.

During a recent video of the ETF Securities partner series, ROBO Global director of research Jeremie Capron and ETF Securities head of sales Kanish Chugh explained that investors in new technologies are outperforming global equities.
“The fact we invest in disruptors that are likely to gain share coming out of this crisis and the market is perceiving this to some extent especially in the areas of AI, automation, enterprise software and healthcare technologies.
“In short, the companies we are focused on are part of the solution. When you take a longer-term view, it is pretty clear that digitalisation is going to accelerate on the other side of this crisis,” Mr Capron argued.
Mr Capron explained that investment based around technology could see a faster adoption due to consumers seeing the advantages while being stuck indoors.

“A good example of that is what is happening around logistics and around warehouse automation.
“As you know, people being confined, e-commerce has seen a step-up increase in terms of utilisation,” Mr Capron said.
This is creating an enormous strain being put on the logistical aspects of e-commerce, which could lead to an increase in technologies being used, the fund manager said.
Mr Capron highlighted that Zebra Technologies “provides the track and trace technology that is used throughout the e-commerce chain, or Manhattan Associate that provides the software that is behind warehouse management systems”.
Mr Capron believes investors should take advantage from a valuation point of view of falling prices in the industry, even if it has been less affected by COIVD-19 than the overall market.
“This is probably the most important technological revolution for our generation. I think robotics and AI are not a niche. It is really a set of general purpose technologies that can be applied to all markets and all industries, and it’s happening now.”
“I say it’s one of the most important technological revolutions, so that you think about it as what happened to the internet in the last 20 years.
“When you think about what that created in terms of wealth, it is just enormous. I think we are on a similar pathway with robotics and automation, and this crisis is probably going to act as a catalyst for faster adoption going forward,” Mr Capron concluded.
About the author

About the author


Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more

Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more