The field of robotics and artificial intelligence is a wide encompassing industry that touches upon many facets of life, which also means that there are many areas for further growth.
“If you look at home automation, right? Look at the advances we’ve seen in Alexa and smart A.I. devices. You look at the, you know, vacuum cleaners, right, with iRobot. Every part of our society has become automated, but at increasingly different rates. So it’s pretty hard to predict which one are going to tack off and when, but with the exception of industrial manufacturing, we’re really at the very beginning stage of penetration, so we think this will go on for years if not decades,” Studebaker said.
The robotics ETF provides exposure to global companies engaged in the business of robotics-related or automation-related industries. The underlying index starts off with a global database of 1,000 companies, classifies components based on a proprietary classification system with 13 subsectors, looks for a minimum threshold for percentage of robotics and automation revenue, and selects those best positioned as market and growth leaders.
ROBO’s portfolio 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.
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