The ROBO Global Robotics & Automation Index ETF (NasdaqGM: ROBO) is the oldest of the robotics exchange traded funds on the market and remains a leader in a disruptive, fast-growing investment segment.
After surging 44% last year, ROBO is up about 4% in 2018. ROBO 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.
“ROBO has erased any doubts about the viability of robotics investing in the ETF wrapper. Today, the ETF has more than $2.3 billion in assets under management, roughly 10% of which has flowed into the fund just this year,” reports InvestorPlace.
When ROBO debuted several years ago, the idea of investing in robotics and artificial intelligence was fresh and perhaps novel. In the years since ROBO came to market, robotics investing has been increasingly validated with ROBO’s performance and asset-gathering acumen making significant contributions to that validation. Importantly, the growth of robotics investing is still in the early innings.
“While the opportunity for growth is clear, investments in RAAI are still in the early stages. US investors have currently invested about $3B into funds that are focused on RAAI—less than a third of the $10B that Japanese and European investors have allocated to dedicated funds. And those numbers are expected to grow rapidly in the coming year,” according to ROBO Global, ROBO’s issuer.
ROBO provides exposure to global companies engaged in the business of robotics-related or automation-related industries. 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.
“Last year, while returning 44%, ROBO hauled in $1.5 billion in new assets, according to CFRA Research. ROBO holds 92 stocks, over two-thirds of which are U.S. and Japanese companies. This robotics ETF is also reflective of the widespread uses of artificial intelligence and robotics technologies as highlighted by its exposure to a dozen industries. Those groups include consumer stocks, energy, healthcare, 3D printing and security and surveillance firms,” according to InvestorPlace.
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