PRNT: Patience Required As 3D Printing Finds Its Spot In The Market

Robotics and automation offer many opportunities for profit. 3D printing may become a profitable industry in the future. Many industries still outsource their products. 3D printing can improve business speed. This will allow these industries to outsource more. Not only would this save money, but it could also reduce the risk of untrustworthy third party sellers. On the same note, 3D-printing is becoming increasingly popular. This page was last edited on 8 September 2018, at 08:09. This makes it more valuable to both small and large businesses.

The robotics industry has not yet fully embraced the 3D printing trend. This is because the future of robotics, artificial intelligence and automation are still uncertain and may not be fully realized. Investors would do well to stay away from this industry. Medium-term, the exposure will be broader. This is why The 3D Printing (BATS:PRNT( a Sell.

It’s unique because it’s the first publicly traded 3D Printing ETF. The 3D printing sector has plenty of room to expand across different sectors. This could lead to the creation of ETFs like PRNT. If 3D printing becomes a more prominent part of the ETF world, then this ETF might be considered to be a leader in the future. PRNT is still focused on 3D Printing and not the automation, artificial intelligence, and robotics which can fuel the 3D Printing Industry in the long run. This aspect, in my opinion, puts this ETF’s performance at a disadvantage.

Strategy

PRNT tracks Total 3D-Printing TR USD Index using a full replica technique. Investors can gain a more comprehensive exposure to the 3D-printing market using this method while avoiding certain transparency concerns. At least 80% the companies that make up the index get at least half their revenues or earnings from 3D print-related activities. This includes the development and distribution of 3D printers, materials, or software. This index is primarily comprised of companies that are involved in 3D-printing hardware, 3D simulation software, or 3D materials.

Holdings Analysis

This ETF invests mostly in technology stocks, with just over one-third of the sector allocation going to nontechnology stocks. These non-tech stocks are primarily industrials with smaller representations of healthcare, basic materials, consumer cyclical and consumer defensive.

PRNT has a majority of its holdings in the United States. Just over a fourth of them are outside of this country. This ETF includes a variety of non-U.S. countries, such as France, Switzerland and Germany.

This ETF’s top 10 holdings account for approximately 41% of its total value, while the top 25 make up 84%. PRNT is a relatively small ETF with only 64 holdings. In addition to the narrow, niche focus of this ETF, it is possible that concentration risk will threaten this ETF over time.

ETF Performance: Future Implications

PRNT vs. Alternatives: Niche too narrow for its own good

Although PRNT is the sole 3D-printing ETF available, 3D-printing dabbles in robots and automation similar to ETFs that have a broader focus. Potentially comparable alternatives might include the Global X Robotics & Artificial Intelligence ETF (BOTZ) and the Robo Global Robotics and Automation Index ETF (ROBO). Below, we show the relative YTD performances of BOTZ and ROBO compared to PRNT.

This ETF may have a more difficult time capitalizing and benefitting from technology trends than other potential alternatives. I think 3D-printing could be a major player in a number of industries. The best way to capitalize on these trends is by investing in less-specific ETFs which cover robotics and automation as well as AI.

The S&P: Burdened by Volatility The S&P: Burdened By Volatility

Compared to the S&P, this ETF’s price trend during 2023 has been quite erratic.

PRNT’s price oscillations are evidently larger than that of the S&P and though it reached some notable heights so far this year, it also appears to have declined just as fast as it jumped. The volatility metrics of this ETF are alarming, as can be seen from the chart below.

PRNT’s volatility is even more apparent when you look back five years.

PRNT, on the other hand, could struggle in the future due to a lack momentum and price fluctuations that are erratic.

Artificial Intelligence (AI) and 3D printing

AI can enhance 3D-printing in the future. AI can automate 3D industrial printing. This will improve the efficiency of 3D printers and strengthen their supply chains. AI can also improve printing quality, allowing for more complex designs and detecting errors more effectively than humans. AI could also analyze consumer data in order to offer more personalized products and service. AI integrations in the 3D-printing industry could ultimately increase profits and push up the PRNT price.

Sectors to Benefit from 3D Printing

Healthcare

As shown in the graph, healthcare is expected to play a major role in 3D printing in the future.

The use of 3D printers with enhanced capabilities could speed up the production of prosthetic limbs and surgical models. This would require less human input. AI-based analysis of patient information could improve the usability and personalization of these products. This could result in more healthcare facilities utilizing 3D printing, and therefore greater revenues for 3D-printing companies.

Aerospace

Aerospace industry may increasingly use 3D printer technology, as it advances and offers more. According to the chart below the Aerospace 3D Printing industry could expand significantly by the end of this decade.

3D-printing could, in particular, allow for the production of lighter, more aerodynamic components, while requiring less capital investment and producing less waste. 3D printing is not only useful for design and construction but also in the repair and maintenance of aircraft.

Negative Outlook and Future concerns

The Labor Market:

3D printing, AI and other revolutionary technologies have the ability to both help and replace humans in certain ways. Many manufacturing workers might lose their jobs if automated 3D-printing tech is better at the job. A new set of laws and regulations could be introduced to regulate the use of 3D printing, which would have a negative impact on the industry. In addition, 3D printing that becomes more advanced may create higher skill levels which can become difficult to achieve at some point. In this regard, a shortage of talent could severely affect the profits for many 3D printer companies.

Lack Of Standardization

3D printers do not yet adhere to a set of universal design and technology standards. The many 3D Printers on the market have unique capabilities and features. It is difficult to compare 3D Printer models, and determine if one printer is better than another. This could also make it more difficult for companies that sell 3D printers to market them in a manner consumers will understand and trust. Both individuals and corporations may be reluctant to adopt 3D printer technology due to these conditions, which could affect PRNT’s performance.

The conclusion of the article is:

As 3D printing technology continues to advance, I think it will become a major part of the manufacturing industry. PRNT may struggle to gain momentum before this fully manifests. It is true that as robotics, automation, and other fields gain in popularity and acceptance, you are likely to be better off with a fund which has a wider focus. This is why I rate PRNT as a sell.