A Robotics ETF to Future Proof Your Portfolio

Exchange traded fund investors can try to future proof their portfolios with disruptive technologies like robotics and artificial intelligence to capture a rapidly growing market.

On the recent (available on demand for CE Credit), Future Proof Your Clients’ Portfolios with Robotics & AI, William Studebaker, CIO and President of ROBO Global, argued that the robotics and artificial intelligence industry is set on an exponential growth path.

Expensive industrial robots were first introduced exclusively to auto manufacturers in the 1960s, and by today, the robotics, automation and artificial intelligence industry has grown to over $200 billion. As automation costs decline and technology advances, applications for robotics and artificial intelligence have expanded, helping improve productivity across a range of industries. Looking ahead, the robotics, automation and artificial intelligence segment could grow to over $1 trillion by 2035.

Robotics and artificial intelligence has been a transformational technology. The declining costs in technology has driven increased robotics investments. Meanwhile, big data has fueled growth in artificial intelligence. The advancements touched upon many industries, helping improve areas like logistics automation, e-commerce growth and healthcare, among others.

Meanwhile, more money is being funneled into the space. We are witnessing increased merger and acquisition activity, and more startup funding is targeting the robotics segment.

When looking for opportunities in this up-and-coming segment, Jeremie Capron, Director of Research for ROBO Global, pointed to the technologies that investors may hone in on. For instance, computing, processing and artificial intelligence covers advances in algorithms, machine vision and natural language processing. There are also new developments in sensing or the ability the process sight, sound and movement. In actuation, we are seeing progress in electric, hydraulic, mechanical and pneumatic.


As investors can see, robotic technology is being deployed in a wide array of industries, including manufacturing, logistics and automation, 3D printing, consumer, security and surveillance, food and agriculture, healthcare and energy.