As technologies advance, investors are able to capitalize on the growth opportunity through targeted ETF strategies.
For instance, the ROBO Global Robotics & Automation Index ETF (NYSEArca: ROBO), the original ETF dedicated to robotics investing, provides investors with the ability to gain targeted exposure to the robotics industry.
“There’s a technological revolution that’s unfolding today in robotics, automation and A.I.,” Jeremie Capron, Director of Research for Robo Global, said at the 2018 Morningstar Investment Conference.
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.
“So the idea was really to provide investors with a simple vehicle to capitalize on this trend,” Capron added.
The ROBO ETF follows the ROBO Global Robotics & Automation Index, which provides access to the entire value chain of robotics, automation and artificial intelligence. The ROBO Global Robotics & Automation Index is comprised of global companies from countries in North America, Europe, Asia and the Middle East and offers almost no overlap with traditional equity indices.
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.
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.
“The secret sauce behind ROBO… is our advisory board and how they work us, and director of research, and help really keep track in pace of the technology and the evolution that’s occurring. It’s really happening at a pace at which is unprecedented and it’s very difficult for the average investor to access these experts. So in a turnkey solution in ROBO, we provide that access to the world’s best companies in robotics and automation,” Chris Buck, Head of Capital Markets & Sales at Robo Global, said at the conference.
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