When some exchange traded funds come to market, they are labeled as “niche” products. That may have been the case when the ROBO Global Robotics & Automation Index ETF (NasdaqGM: ROBO) debuted, but niche or not, ROBO is rewarding investors.
ROBO, which provides exposure to global companies engaged in the business of robotics-related or automation-related industries, is up 39.1% over the past year. Robotics- or automation-related products and services include any technology, service or device that supports, aids or contributes to any type of robot, robotic action or automation system process, software or management.
The once-far flung concept of robotics is gaining some momentum. For example, the International Federation of Robotics expects that worldwide sales of robots will rise by 6 percent between 2014 and 2016, and over 190,000 industrial robots will be supplied to companies around the globe in 2016, said Robo-Stox in the statement. ROBO debuted in late 2013.
“Robotics is a key transformative technology that can revolutionize manufacturing. American workers no longer aspire to low-level factory jobs, and the cost of U.S. workers has been slowly rising due to insurance and healthcare costs,” according to ETF Daily News. “Even when workers are affordable, they are still human. That means they have limitations when it comes to adaptability, precision and reliability.”