5 Biggest Robotics ETFs in 2023
Revenue in the robotics market is projected to grow significantly over the coming decade. Have you considered investing in robotics ETFs?
With widespread adoption expected to continue across various industries, the robotics sector is projected to see major growth in the years to come.
To give an idea of the investment opportunities in robotics, data from Markets and Markets shows that the industrial robotics market will grow at a compound annual growth rate (CAGR) of 14.3 percent from 2022 to reach US$30.87 billion by 2027. The global service robot sector is also slated to experience significant growth in the coming decade, states Future Market Insights, growing at a CAGR of 21 percent to reach US$267 billion by 2033.
With the robotics market poised to thrive in the coming years, the industry is certainly garnering attention from investors. Exchange-traded funds (ETFs) are a popular way for interested individuals to get exposure to an overarching market, and there are a number of robotics ETFs available for those interested in the space.
Here the Investing News Network looks at five robotics ETFs. All data comes from ETFdb.com, and was current as of February 13, 2023. These robotics ETFs have a focus on developed markets and are listed below according to their assets under management (AUM) from largest to smallest.
1. Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ)
ETF Profile
AUM: US$1.56 billion
First on this robotics ETFs list is the Global X Robotics & Artificial Intelligence Thematic ETF, which launched on September 12, 2016. It has 43 holdings and is targeted towards investors interested in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI).
Large-cap companies make up 54 percent of its holdings, while 8 percent are small caps. In terms of sector breakdown, companies catering to the producer manufacturing sector have a weightage of nearly 40 percent in the ETF, and 24 percent are companies in the electronic technology space.
NVIDIA (NASDAQ:NVDA), ABB (NYSE:ABB), Intuitive Surgical (NASDAQ:ISRG), Keyence (OTC Pink:KYCCF,TSE:6861) and Fanuc (OTC Pink:FANUF,TSE:6954) are the ETF’s top five holdings.
2. ROBO Global Robotics & Automation Index ETF (ARCA:ROBO)
ETF Profile
AUM: US$1.34 billion
Created on October 22, 2013, the intention of the ROBO Global Robotics & Automation Index ETF is to provide investors with exposure to the rapidly evolving robotics, automation and AI industries.
This ETF currently has 81 holdings across 15 countries in developed and emerging markets. In terms of market cap breakdown, nearly 36 percent of its picks are large-cap stocks, while 16 percent are small-cap companies.
The fund's top holdings include Harmonic Drive Systems (TSE:6324), IPG Photonics (NASDAQ:IPGP), Fanuc and Kardex Holding (SWX:KARN).
3. IShares Robotics And Artificial Intelligence ETF (ARCA:IRBO)
ETF Profile
AUM: US$281.99 million
The iShares Robotics and Artificial Intelligence ETF is the most recent ETF on this list, having launched on June 26, 2018. It gives investors exposure to companies that spearhead robotics and AI innovation.
This robotics ETF has 120 holdings and consists mostly of large-cap companies at 36 percent and mid-cap companies at 35 percent; small-cap companies make up 25 percent of its holdings. Companies involved in technology services account for 50 percent of its constituents, while 30 percent are involved in the electronic technology segment.
The top holdings of the ETF include iQIYI (NASDAQ:IQ), Hello Group (NASDAQ:MOMO), Sumo Logic (NASDAQ:SUMO) and Spotify Technology (NYSE:SPOT).
4. First Trust NASDAQ Artificial Intelligence & Robotics ETF (NASDAQ:ROBT)
ETF Profile
AUM: US$198.6 million
Launched on February 21, 2018, this ETF was designed to track the performance of companies involved in AI, robotics and automation. The First Trust NASDAQ Artificial Intelligence & Robotics ETF has 112 holdings, with 72 percent involved in technology and 17 percent focused on producer manufacturing. Roughly 41 percent of its holdings are large-cap companies, followed by mid-cap companies at 37 percent and small caps at 17 percent.
The top five holdings for this ETF are Ciena (NYSE:CIEN), Ambarella (NASDAQ:AMBA), Elbit Systems (NASDAQ:ESLT) and Hexagon (STO:HEXA.B).
5. Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (ARCA:UBOT)
ETF Profile
AUM: US$18.29 million
The Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares first came to the market on April 19, 2018. The Global X Robotics & Artificial Intelligence Thematic ETF, mentioned above, is its majority holding with a weightage of 55.73 percent.
This product tracks the Indxx Global Robotics and Artificial Intelligence Thematic Index, which provides exposure to public companies in developed markets that could benefit from the adoption and use of robotics and AI.
Source: https://investingnews.com/daily/tech-investing/emerging-tech-investing/robotics-investing/robotics-etfs/
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