Intuitive Surgical (NasdaqGS: ISRG) is also a surgical robotics pioneer and leader in the healthcare field. The company has installed base of 4,000+ DaVinci systems that covered over 800,000 procedures in 2017. The firm has enjoyed recurring sales of 70% and boasts a strong balance sheet to fund further research and development efforts and sales expansions.
Teradyne (NasdaqGS: TER) is a global leader in electronic test equipment pivoting to robotics. The company is a market leader in collaborative robotics and has acquired Universal Robots and Mobile Industrial Robots to expand its market share.
As a way to capture these innovative and quickly growing companies, investors may turn to something like the ROBO Global Robotics & Automation Index ETF (NYSEArca: ROBO), the original ETF dedicated to robotics investing. The fund is backed by an expert team with an exclusive focus on robotics and is uniquely positioned to access, understand and track the robotics and automation ecosystem.
ROBO includes global exposure with its largest tilt toward U.S. 42%, followed by Japan 26%, Germany 9%, Taiwan 5% and Switzerland 5%. The ETF includes companies that touch upon various market industries, including 18% computing and A.I., 15% manufacturing, 13% actuation, 10% healthcare and 10% sensing.
Due to its cross-market exposure, the fund is relatively diversified compared to traditional cap-weighted indices. Specifically, ROBO only has a 2.37% overlap with the S&P 500 Index and a 1.33% overlap with the MSCI World Index.
“Robotics and automation is positioned to outperform the global market and is becoming increasingly visible in every aspect of our daily and business lives,” Capron said.
Financial advisors who are interested in learning more about robotics investments can watch the webcast here on demand.