ROBO follows a two-tiered, equal-weighted system that ensures the strategy provides diversified exposure to a broad global ecosystem of new and enabling technologies as well as established automation/robotic providers. Specifically, the ETF includes a 60% tilt toward non-bellwether robotics with growing revenue contributions and a 40% tilt toward bellwether robotics companies that are well-established in the space.
The robotics ETF’s portfolio may also provide exposure to companies with sustainable growth opportunities, as the underlying ROBO Global Robotics & Automation Index has exhibited attractive sales growth, EBITDA growth and earnings-per-share growth. The underlying index has even outperformed the broader technology and S&P 500 index since the 2008 financial downturn.
“Chances are, most investors aren’t positioned for the rising integration and demand for robotics in various industries. For example, the ROBO Global U.S. Index has just 1.78% overlap with the S&P 500 Index and only 1.80% overlap with the MSCI World Index,” notes ETF Daily News.
For more information on the tech sector, visit our technology category.