Robotics ETF to Augment a Portfolio’s Growth Potential

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As a way to jump on new developments and the growth potential of advancing technologies, investors may consider gaining exposure to disruptive tech like robotics and artificial intelligence.

During the recent annual ETF Trends Virtual Summit, an online virtual conference environment where financial advisors learned about current ETF issues, Chris Buck, Head of Capital Markets & Sales at ROBO Global, argued that the robotics and artificial intelligence industry is set on an exponential growth path.

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.

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.

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.

As a way to access diversified exposure to these various market segments, investors can look at something like the ROBO Global Robotics & Automation Index ETF (NASDAQ: ROBO), the original ETF dedicated to robotics investing.

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 North America, Europe, Asia and the Middle East and offers almost no overlap with traditional equity indices.

Robotics-related and automation-related companies 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. For instance, products and services include products that incorporate artificial intelligence, unmanned vehicles, software that enables virtualized product design and implementation, three-dimensional printers, navigation systems and medical robots or robotic instruments.

Click here to watch​ the Innovative Industries Leading ETF Strategies and the Technology Revolution' Virtual Summit panel On Demand (CE Credit available to financial advisors).

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