Robo, AI ETF hits $100m

ETF Securities Australia has reported its Robo Global Robotics and Automation exchange-traded fund (ETF) has achieved inflows of $100 million just nine months after its launch.

The ETF represents a partnership between ETF Securities Australia and United States-based specialist robotics and automation index and research provider Robo Global, tracking the Robo Global Robotics and Automation Index.

It is the first ETF in Australia to provide investors with access to global companies focusing on robotics, automation and artificial intelligence (AI) technologies.

“While Australian investors are often maligned for their failure to consider impressive opportunities in overseas markets, their response to the Robo ETF is nothing short of outstanding and clearly shows that ETFs are becoming a core part of many portfolios,” ETF Securities Australia head Kris Walesby said today.

“Robo provides local investors with unique access to a global spread of transformational technologies and is the cheapest way of gaining access to robotics, automation and AI, which has returned a hefty 18.76 per cent in the year to 31 May.”

The Robo ETF tracks the performance of 87 stocks from 12 high-growth sectors, focusing on particularly innovative small and mid caps, while avoiding more mature technology names, which may lack innovation.

The index captures both technology and application stocks from more than 15 countries, with North American companies accounting for 45 per cent of the index as at 31 May, followed by 32 per cent in Asia and 23 per cent in Europe.

Walesby said the robotics, automation and AI industries are part of a global megatrend forecast to outperform the broader market in coming decades.

“Companies are increasingly investing in automation as they seek to improve productivity, reducing production costs and in turn increasing profitability,” he noted.

“Already generating more than $200 billion annually, sales in the robotics and automation sectors are tipped to increase more than fivefold over the next decade.”

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