Investing in Robotics? Follow These 5 Simple Rules

By Richard Lightbound via Iris.xyz

It seems everyone wants to jump on the robotics bandwagon these days. It’s no surprise. Robotics, automation, and artificial intelligence—or RAAI—includes many of the most exciting companies in today’s universe of emerging technologies. Plus, because this sector is considered a must-have capability in nearly every industry in every corner of the globe, the potential for growth across the robotics supply chain is tremendous.

That doesn’t mean, however, that all robotics investments or investing strategies are created equal. As investment firms and ETF providers race to deliver robotics-focused products, it’s more critical than ever to analyze each approach with vigilance. Follow these five simple rules to explore the pros and cons of each offering and choose an investment strategy that fits your own needs and long-term goals:

1. Select investments that fit within your existing portfolio.

In today’s market environment, diversification is key. And while many investors look to RAAI to provide a new level of diversification, many strategies fail to deliver because they include a short list—sometimes as few as 20 companies—of common large-cap equities.

While these companies may be the current market leaders, it’s possible, if not probable, that these companies are already included in your portfolio.

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