U.S. Markets closed

Here's Why You Should Invest in Robotics ETFs

Neena Mishra
Robotics, AI and automation are transforming our lives. Here's what investors need to know.
  • (1:15) - Will We Continue To See The Use of Robots Increase and How?
  • (4:35) - When Could We Expect Self Driving Cars?
  • (8:45) - The Future Potential For Healthcare Robotics
  • (12:15) - What Sectors Will Benefit From Robotics?
  • (14:30) - ROBO Global Robotics and Automation Index ETF Overview
  • (20:25) - The Rise of The Machine: Will Robots Continue To Steal Our Jobs?
  • (24:00) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I talk with Jeremie Capron, Director of Research at ROBO Global. ROBO Global is the creator of the first index to track the global robotics, automation and artificial intelligence industry.

Robots and AI are improving and becoming an integral part of our lives. Earlier this month, Walmart WMT announced that it is expanding the use of robots in its stores to help track inventory, scrub floors and unload trucks. Food delivery robots are already here and delivery drones are being used in real world settings.

Will we see more robots in our day-to-day lives?

Self-driving cars are no longer science fiction. Silicon Valley giants and big automakers have poured billions of dollars into these technologies. These cars have already driven millions of miles for testing. Google’s GOOGL Waymo, a leader in the technology, has launched a robot taxi service in Phoenix, AZ, but at a very small scale and with human drivers for support.

Uber, another major player, had halted its autonomous car testing after a fatal accident last year that raised questions about the technology and resumed limited testing in Pittsburgh in December.

Will self-driving cars be ready for wide-scale deployment anytime soon?

Another area that has profound robotic applications is healthcare. We discuss how companies like Intuitive Surgical ISRG are transforming healthcare.

We also discuss why investors should not ignore this rapidly evolving and exponentially growing space.

We then discuss the index created by ROBO Global. The company has a team of experts that looks at the entire robotics and automation landscape to identify the companies to be included in the index.

Jeremie explains the process of selection of constituents—bellwether as well as non-bellwether.  He also talks about the benefits of equal weighing approach, which largely eliminates single stock risk.

About 48% of ROBO’s assets are invested in US companies and rest in international companies. Japanese companies get about 22% weight, which makes sense since Japan has been a pioneer in robotics.

While we are familiar with companies like iRobot IRBT, Rockwell Automation ROK and Nvidia NVDA, most investors do not know much about foreign companies that are at the forefront of these technologies. We talk about some such companies.

Finally, we discuss whether robots are going to take our jobs.

In addition to ROBO, the Global X Robotics & Artificial Intelligence ETF BOTZ, the iShares Robotics Artificial Intelligence ETF IRBO and the First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT provide exposure to this space and are worth a look.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports
 
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
 
iRobot Corporation (IRBT) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
iShares Robotics and Artificial Intelligence ETF (IRBO): ETF Research Reports
 
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
 
First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research