The AI, robotics and VR technologies will grow into the major innovative players of the 21st century.

A while back I wrote about a new sector—artificial intelligence, robotics, and virtual reality and how these innovative technologies were set to transform numerous aspects of modern society—manufacturing, labor, health, energy, leisure, and of course transportation. 

I suggested that the low-priced ETFs—ROBO and BOTZ—were a more conservative way and my choice to trade the companies that introduce these technologies. My preferred ETF was ROBO, thanks to its slightly higher volume.

Since that post, ROBO has been racing to new highs with the other major technology sectors. Correspondingly, like the others, it has declined in the last couple of weeks. 

The run from June lifted ROBO about 25 percent to $42.50. So far, the decline has brought it back about 4 percent. In contrast, SMH, the semi-conductor ETF, is down about 11 percent.

The AI, robotics and VR technologies (along with renewable energy) will grow into the major innovative thrusts of the 21st century. The impact on the modern world will be tremendous, with huge potential for good or bad. Already, the talk is about taxing robots. New companies with breakthrough technologies will become major corporations as the sector grows. 

Until the companies in this sector mature, and the enviable shake-out occurs, I prefer the ETFs. At this moment, price is short-term oversold, and testing its breakout zone between $40 and $41. If it finds support, there’s a chance for a year-end rally.