Sun. Sep 24th, 2023
    The 10 Best Robotics ETFs: Investing in the Future of Technology

    The robotics industry is experiencing significant growth and transformation due to the integration of artificial intelligence (AI), the Internet of Things (IoT), and autonomous technologies. This powerful synergy is driving the adoption of robotics in various sectors and creating investment opportunities for those looking to capitalize on this trend.

    According to Mordor Intelligence, the robotics industry was valued at $114.7 billion in 2023 and is projected to reach $258.4 billion by 2028, growing at a compound annual growth rate (CAGR) of 17.6%. The industry can be divided into two categories: industrial robots used in manufacturing, and service robots that assist humans in non-industrial tasks.

    In terms of industrial robots, they are widely used across industries such as automotive, electronics, metals, plastics, and chemicals for tasks like assembly, packaging, and testing. The industrial robotics segment comprises 91% of the total robotics industry and is expected to grow at an average annual rate of 7.9% to reach $165.4 billion by 2028.

    On the other hand, service robots assist humans in non-industrial tasks like logistics, healthcare, hospitality, agriculture, and defense. Factors such as increases in labor costs and the need for assistive robots for aging populations have driven the demand for service robots in recent years.

    Investors are taking notice of the potential in the robotics industry and are making significant investments. The top three sectors driving the adoption of robotics are the medical field, domestic services, and the entertainment industry. The automotive industry, in particular, has seen a surge in the demand for robotics in new production facilities, with nearly $16 billion invested in the robotics industry in 2022.

    For investors looking to gain exposure to the robotics industry, there are several ETFs available. The following are the 10 best robotics ETFs based on their 5-year performance as of September 8, 2023:

    1. ALPS Disruptive Technologies ETF (DTEC)
    2. Robo Global Robotics and Automation Index ETF (ROBO)
    3. iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
    4. Global X Robotics & Artificial Intelligence ETF (BOTZ)
    5. First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT)
    6. ETFMG Prime Mobile Payments ETF (IPAY)
    7. First Trust Indxx Innovative Transaction & Process ETF (LEGR)
    8. ARK Autonomous Technology & Robotics ETF (ARKQ)
    9. VanEck Vectors Video Gaming and eSports ETF (ESPO)
    10. Global X Internet of Things ETF (SNSR)

    These ETFs provide exposure to companies engaged in robotics, automation, and related themes. They have been ranked based on their 5-year performance, and their holdings consist of leading robotics companies such as Thermo Fisher Scientific Inc., Intuitive Surgical, Inc., and UiPath Inc.

    Investing in robotics ETFs can be a strategic way to participate in the growth of the robotics industry and benefit from the potential returns offered by this emerging sector. As the adoption of robotics continues to accelerate, these ETFs may provide investors with a diversified and long-term investment option.

    – Mordor Intelligence
    – International Federation of Robotics