Whenever discussing disruptive technologies, Robotics and Artificial Intelligence stand out as two that are both closely linked and have the potential to open new doors for many industries. Artificial Intelligence, in particular, has been noted as a ‘core technology’ around which other next-gen offerings will coalesce.
With that in mind, below, we have listed 5 of the top robotics and AI ETFs structured to give savvy and forward-thinking investors exposure to these two technologies
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Robotics & AI-Focused Exchange Traded Funds (ETFs)
*Note: ETFs are ranked by Net Assets of Funds in USD at the time of writing*
1. ARK Autonomous Technology & Robotics
The ARK Autonomous Technology & Robotics ETF (ARKQ) is actively managed and focuses on companies expected to benefit from advancements in autonomous technology, robotics, and AI. The fund seeks to capitalize on the growth potential of autonomous transportation, automation, and innovative robotics technologies.
Key holdings of this fund include the following companies,
- Tesla Inc. (TSLA)
- Teradyne Inc. (TER)
- Kratos Defense & Security (KTOS)
- Iridium Communications Inc. (IRDM)
- Trimble Inc. (TRMB)
| Net Assets of Fund | Expense Ratio | 1-yr Return | 3-yr Return | 5-yr Return |
| ~$800 million | 0.75% | -2.10% | -13.65% | 10.66 |
ARKQ is managed by ARK Invest, which is known for its focus on disruptive innovation and actively managed ETFs. The fund targets companies involved in autonomous transportation, robotics, 3D printing, and energy storage.
What sets it apart from direct competitors?
- Active Management: ARKQ benefits from active management by ARK Invest, allowing for dynamic allocation and timely adjustments based on market conditions and technological advancements.
- Focus on Disruptive Technologies: The fund specifically targets companies that are expected to lead the way in disruptive innovations, including autonomous vehicles and advanced robotics.
- Expertise in Innovation: Managed by ARK Invest, which is known for its expertise and focus on identifying companies with high growth potential in emerging and disruptive technologies.
ARKQ was launched in September 2014 and has gained attention for its strategic focus on high-potential areas within the autonomous technology and robotics sectors.
2. Global X Robotics & Artificial Intelligence
The Global X Robotics & Artificial Intelligence ETF (BOTZ) provides targeted exposure to companies involved in the development and production of robotics and artificial intelligence technologies. The fund aims to capitalize on the growth and advancement in robotics and AI across various sectors.
Key holdings of this fund include the following companies,
- NVIDIA Corp. (NVDA)
- ABB Ltd. (ABB SW)
- Keyence Corp. (6861 JP)
- SMC Corp. (6273 JP)
- Fanuc Corp. (6954 JP)
| Net Assets of Fund | Expense Ratio | 1-yr Return | 3-yr Return | 5-yr Return |
| ~$2.82 billion | 0.68% | 7.74% | -3.93% | 8.52% |
BOTZ is managed by Global X, a renowned provider of thematic ETFs known for its focus on emerging sectors and innovative technologies. The Fund seeks to track the Indxx Global Robotics & Artificial Intelligence Thematic Index, which is designed to provide broad exposure to the AI and robotics sector.
What sets it apart from direct competitors?
- Pure AI and Robotics Play: Unlike broader tech ETFs, BOTZ offers concentrated exposure to companies explicitly involved in robotics and AI.
- Geographical Diversification: The fund includes significant investments in companies from Japan, the U.S., and Switzerland.
- Industry-Specific Focus: The focus on robotics and AI provides investors with targeted exposure to these technologies’ growth potential.
BOTZ was launched in September 2016 and has grown to be a popular choice for investors seeking to invest in the AI and robotics revolution.
3. Vanguard Information Technology
The Vanguard Information Technology ETF (VGT) focuses on large-cap technology stocks, providing exposure to companies that are leaders in the tech industry, including those involved in AI.
Key holdings of this fund include the following companies,
- Apple Inc. (AAPL)
- Microsoft Corp. (MSFT)
- NVIDIA Corp. (NVDA)
- Broadcom Inc. (AVGO)
- Advanced Micro Devices Inc. (AMD)
| Net Assets of Fund | Expense Ratio | 1-yr Return | 3-yr Return | 5-yr Return |
| ~$87.6 billion | 0.10% | 31.25% | 13.96% | 23.34 |
VGT is managed by Vanguard, one of the largest asset management firms in the world. The fund tracks the MSCI US Investable Market Information Technology 25/50 Index, which includes a wide range of technology stocks with significant exposure to AI.
What sets it apart from direct competitors?
- Low Expense Ratio: VGT offers one of the lowest expense ratios in the industry, making it a cost-effective choice for tech investors.
- Large-Cap Focus: The fund includes major tech companies, providing exposure to industry leaders in AI and other technologies.
- Broad Tech Exposure: VGT covers a wide range of technology sectors, ensuring diversified exposure to the tech industry.
VGT was launched in January 2004 and has grown to become one of the largest and most popular tech-focused ETFs.
4. ROBO Global Robotics and Automation Index
The ROBO Global Robotics and Automation Index ETF (ROBO) focuses on companies involved in robotics, automation, and related technologies. The fund provides exposure to a wide range of companies across different sectors and geographies.
Key holdings of this fund include the following companies,
- Novanta Inc. (NOVT)
- Harmonic Drive Systems Inc. (6324 JP)
- Rockwell Automation Inc. (ROK)
- Zebra Technologies Corp. (ZBRA)
- Intuitive Surgical Inc. (ISRG)
| Net Assets of Fund | Expense Ratio | 1-yr Return | 3-yr Return | 5-yr Return |
| ~$1.25 billion | 0.95% | -5.45% | –5.36% | 6.82% |
ROBO is managed by ROBO Global, an investment advisory firm specializing in robotics and automation. The fund tracks the ROBO Global Robotics & Automation Index, an equal-weighted index that includes a diverse mix of companies involved in robotics and automation.
What sets it apart from direct competitors?
- Equal-Weighted Index: ROBO uses an equal-weighted index, providing balanced exposure to a wide range of companies.
- Broad Sector Coverage: The fund includes companies from both developed and emerging markets, covering a broad spectrum of the robotics and automation industry.
- Innovative Focus: ROBO targets companies that are leading in innovation in robotics and automation, providing exposure to cutting-edge technologies.
ROBO was launched in October 2013 and has become a popular choice for investors looking to invest in the future of robotics and automation.
5. iShares Robotics and Artificial Intelligence Multisector
The iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) provides exposure to companies involved in robotics and AI across multiple sectors. The fund aims to capture the growth potential of AI and robotics technologies worldwide.
Key holdings of this fund include the following companies,
- Sirius XM Holdings Inc. (SIRI)
- ARM Holdings American Depositary S (ARM)
- Cognex Corp. (CGNX)
- Adobe Inc. (ADBE)
- Hello Group ADR Inc. (MOMO)
| Net Assets of Fund | Expense Ratio | 1-yr Return | 3-yr Return | 5-yr Return |
| ~$686 million | 0.47% | 1.89% | -8.20% | 7.18% |
IRBO is managed by iShares, a leading provider of ETFs. The fund tracks the NYSE FactSet Global Robotics and Artificial Intelligence Index, an equal-weighted index that includes companies from various sectors and regions involved in robotics and AI.
What sets it apart from direct competitors?
- Cost-Effective: IRBO offers one of the lowest expense ratios among AI ETFs, making it a cost-effective choice for investors.
- Global Diversification: The fund includes companies from the U.S., Japan, China, and other countries, providing broad geographical exposure.
- Sector Variety: IRBO targets a diverse range of sectors, ensuring exposure to different aspects of the AI and robotics industries.
IRBO was launched in June 2018 and has quickly gained popularity among investors seeking diversified exposure to AI and robotics technologies.
Final Thoughts
Over the coming years, robotics and artificial intelligence are the two sectors with, perhaps, the highest potential for growth and ability to transform the world we live in. This perception is reflected in associated robotics and AI ETFs as investors are clearly showing an increasing belief in the two intertwined sectors. If, after reading this, you find yourself of the same opinion, make sure to visit our look at the top online brokers that can help you invest and gain exposure to what may be lucrative opportunities.
