Exploring the Future: Top 7 AI and Robotics ETFs

The acceleration of artificial intelligence (AI) defines this decade, creating a turning point for the industries of AI and robotics. To navigate this transformative era, investors are turning to ETFs that provide well-rounded exposure to these technologies. Here, we introduce seven ETFs that offer distinct perspectives on the burgeoning AI and robotics sectors.

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1. Global X Artificial Intelligence & Technology ETF (AIQ)

• Assets under management: $613.5 million
• Expenses: 0.68% (or $68 annually for every $10,000 invested)

The Global X Artificial Intelligence & Technology ETF (AIQ, $26.30) is a five-year-old fund targeting companies developing AI products and services, along with those facilitating AI through hardware. With a diverse portfolio of nearly 90 stocks, it encompasses:

• Consumer-focused AI: Meta Platforms, Microsoft, Apple
• Back-end services AI: Salesforce.com, Oracle
• Hardware manufacturers: Nvidia, Intel

AIQ strikes a balance with mega-cap, stable stocks, making it investor-friendly. Importantly, it captures different aspects of the AI sector, including tech, communication services, consumer discretionary, industrials, healthcare, and financials. While two-thirds of the fund is U.S.-based, it also holds stocks from 10 other countries, providing geographical diversification.

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Market Insights and Growth Prospects:

The prominence of AI and robotics is unmistakable, with their influence expanding across various sectors. Investors seeking exposure to these transformative technologies must carefully consider the distinctive approaches of each ETF. As AI and robotics continue to redefine industries, these funds serve as gateways for investors looking to be part of the future.

2. ARK Autonomous Technology & Robotics ETF (ARKQ)

• Assets under management: $6.9 billion
• Expenses: 0.75%

ARKQ, managed by ARK Invest, offers a comprehensive focus on autonomous technology and robotics. With a substantial AUM of $6.9 billion, it includes companies involved in various innovative sectors:

• Electric Vehicles (EVs): Tesla, NIO
• 3D Printing: Stratasys, Desktop Metal
• Autonomous Vehicles: Alphabet (Waymo), Deere & Company

Catherine Wood’s visionary approach ensures exposure to disruptive technologies shaping the future. The fund’s emphasis on innovation across industries makes it a compelling choice for investors seeking a dynamic portfolio.

3. iShares Robotics and Artificial Intelligence ETF (IRBO)

• Assets under management: $3.2 billion
• Expenses: 0.47%

iShares Robotics and Artificial Intelligence ETF (IRBO) stands out for its balanced approach. With a diversified portfolio of global companies, it captures the essence of AI and robotics. Key holdings include:

• Industrial Automation: Rockwell Automation, ABB
• Semiconductors: ASML, Applied Materials
• AI Software: Adobe, Autodesk

The fund’s emphasis on various facets of AI and robotics, from automation to software, provides investors with a well-rounded exposure to the evolving landscape.

4. Robo Global Robotics and Automation ETF (ROBO)

Assets under management: $6.1 billion

• Expenses: 0.95%

ROBO Global Robotics and Automation ETF (ROBO) takes a global approach, targeting companies at the forefront of the robotics revolution. Its diversified holdings span:

• Healthcare Robotics: Intuitive Surgical
• Automation Solutions: Cognex Corporation
• Industrial Robotics: Yaskawa Electric

With a solid AUM of $6.1 billion, ROBO offers investors access to a wide array of companies driving advancements in robotics and automation.5. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

• Assets under management: $3.5 billion
• Expenses: 0.65%

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) provides investors with exposure to the Nasdaq CTA Artificial Intelligence and Robotics Index. This ETF includes companies engaged in the development and utilization of AI and robotics technologies. Key sectors covered include:

• Data Analysis: Palantir Technologies
• Robotics Solutions: Teradyne, iRobot
• AI in Healthcare: Siemens Healthineers

ROBT’s targeted approach to specific sectors within AI and robotics offers investors a focused perspective on key growth areas.

6. WisdomTree Artificial Intelligence ETF (AIQ)

• Assets under management: $130 million
• Expenses: 0.95%

The WisdomTree Artificial Intelligence ETF (AIQ) adopts a unique dividend-weighted strategy within the AI space. The ETF includes companies that generate revenue from AI and exhibit potential for sustainable dividend payments. Notable holdings encompass:

• Speech Recognition: Nuance Communications
• AI in Manufacturing: Siemens AG
• Data Processing: Teradata Corporation

AIQ’s approach combines the potential for capital appreciation with a focus on companies capable of providing consistent dividends in the AI sector.

7. L&G Robotics and Automation UCITS ETF (ROBO)

Assets under management: $1.8 billion

• Expenses: 0.49%

L&G Robotics and Automation UCITS ETF (ROBO) offers a European perspective on the robotics and automation landscape. It tracks the performance of the ROBO Global Robotics and Automation UCITS Index. Key holdings include:

• Automation Software: SAP
• Collaborative Robots: ABB
• Sensor Technology: Keyence Corporation

With a substantial AUM of $1.8 billion, ROBO provides European investors with a focused approach to companies driving innovation in the robotics and automation sectors.

Strategic Considerations:

In the ever-evolving landscape of AI and robotics, these ETFs offer investors diverse strategies and perspectives. The selection depends on individual preferences, risk tolerance, and the desired level of exposure. Whether prioritizing innovation, dividends, or a regional focus, these ETFs contribute to a well-rounded investment approach aligned with the transformative forces shaping the future. As the AI and robotics narrative unfolds, strategic considerations become paramount for investors navigating this dynamic terrain.