Revenue in the robotics market is projected to grow significantly over this decade. Have you considered investing in robotics ETFs?
To give an idea of the investment opportunities in robotics, data from Statista shows that the industrial robotics market will grow at a compound annual growth rate (CAGR) of 10 percent from 2021 to reach US$70.6 billion by 2028. The global service robot sector is also slated to experience significant growth in the same period, states Coherent Market Insights, growing at a CAGR of 15.9 percent to reach US$41.3 billion by 2028.
With the robotics market poised to thrive in the coming years, the industry is certainly garnering attention from investors. Exchange-traded funds (ETFs) are a popular way for interested individuals to get exposure to an overarching market, and there are a number of robotics ETFs available for those interested in the space.
Here the Investing News Network looks at five robotics ETFs. All data comes from ETFdb.com, and was current as of January 6, 2022. These robotics ETFs have a focus on developed markets and are listed below according to their assets under management (AUM) from largest to smallest.
1. Global X Robotics & Artificial Intelligence Thematic ETF
AUM: US$2.67 billion
First on this robotics ETFs list is the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ), which launched on September 12, 2016. It has 39 holdings and is targeted towards investors interested in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI).
Large-cap companies make up 60 percent of its holdings, while 8 percent are small caps. In terms of sector breakdown, companies catering to the producer manufacturing sector have a weightage of nearly 34 percent in the ETF, and 35 percent are companies in the electronic technology space.
2. ROBO Global Robotics & Automation Index ETF
AUM: US$1.97 billion
Created on October 22, 2013, the intention of the ROBO Global Robotics & Automation Index ETF (ARCA:ROBO) is to provide investors with exposure to the rapidly evolving robotics, automation and AI industries.
This ETF currently has 84 holdings across 15 countries in developed and emerging markets. In terms of market cap breakdown, nearly 40 percent of its picks are large-cap stocks, while 22 percent are small-cap companies.
3. iShares Robotics and Artificial Intelligence ETF
AUM: US$426.4 million
The iShares Robotics and Artificial Intelligence ETF (ARCA:IRBO) is the most recent ETF on this list, having launched on June 26, 2018. It gives investors exposure to companies that spearhead robotics and AI innovation.
This robotics ETF has 121 holdings and consists mostly of large-cap companies at 53 percent; small-cap companies make up 14 percent of its holdings. Companies involved in information technology account for 45 percent of its holdings, while 28 percent are involved in the electronic technology segment.
4. First Trust NASDAQ Artificial Intelligence and Robotics ETF
AUM: US$296.16 million
Launched on February 21, 2018, this ETF was designed to track the performance of companies involved in AI, robotics and automation. The First Trust NASDAQ Artificial Intelligence and Robotics ETF (NASDAQ:ROBT) has 109 holdings, with 78 percent of the picks involved in technology and 16 percent in industrials. Roughly 51 percent of its holdings are large-cap companies, followed by mid-cap companies at 29 percent and small caps at 16 percent.
5. Direxion Robotics, Artificial Intelligence & Automation Index Bull 2X Shares
AUM: US$40.16 million
The Direxion Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (ARCA:UBOT) first came to the market on April 19, 2018. The Global X Robotics & Artificial Intelligence Thematic ETF, mentioned above, is its majority holding with a weightage of 39.75 percent.
This product tracks the Indxx Global Robotics and Artificial Intelligence Thematic Index, which provides exposure to public companies in developed markets that could benefit from the adoption and use of robotics and AI.
This is an updated version of an article first published by the Investing News Network in 2019.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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