Investing in the robotics economy

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Investors with an interest in robotics, automation and artificial intelligence can gain exposure to the sector through a new exchange traded fund launched by ETF Securities Australia.

ETFS worked with the robotics and automation index and research provider ROBO Global to develop ETFS ROBO Global Robotics and Automation ETF, which started trading on the Australian Securities Exchange on Friday (ASX: ROBO).

ROBO Global listed a robotics and automation ETF on the Nasdaq exchange in 2013 and also manages the ROBO Global Robotics and Automation Index.

According to ETFS, the robotics economy was worth an estimated US$64 billion in 2015 and could be worth as much as US$1.2 trillion by 2025, as demand for productivity improvements drives increasing industrial, service and consumer applications.

Richard Lightbound, ROBO Global’s EMEA chief executive, says: “The investment opportunity here is significant and if captured correctly the growth prospects from companies within the industry are huge.”

The new ETF will track the performance of 83 stocks, with a focus on small and mid-caps. The ROBO Global index covers 15 countries, with North American companies making up 43 per cent of the index, Asian companies 38 per cent and European companies 19 per cent.

There are no Australian companies in the index.

The index was up 31.2 per cent over the 12 months to the end of August. Over the past three years the index has grown 18.2 per cent a year and over the past five years it has grown 25.7 per cent a year.

The new ETF has a management fee of 69 basis points.

 

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