ROBO Global Robotics & Automation Index ETF

ROBO

Market cap $1.24B

ROBO Global Robotics and Automation Index ETF earns a "Buy" rating, targeting 3%-5% allocation for exposure to secular growth trends in industrial automation and robotics. ROBO offers diversified global exposure across 77 holdings, with 56% of assets in overseas companies and a balanced mix of large, mid, and small caps. Reindustrialization and automation investments, projected to reach $4.7 trillion, provide strong thematic tailwinds for ROBO's portfolio companies.

While AI applications dominate the conversation, a less-visible hardware trend is already delivering results. Key photonics companies are posting strong earnings, validating the theme for investors in AI and robotics and automation ETFs.

Investors who watched the robotics space peak back in 2021 may see the current rally with apprehension. Back then, the narrative of a China-driven logistics and e-commerce boom sent robotics stocks to dizzying heights.

VettaFi's Zeno Mercer sees robotics booming toward a $7 trillion industry. A.I.'s acceleration adds to his case that robotics is here to stay.

Some technological innovations are transformative. The introduction of the personal computer was one great example.

One way to invest in artificial intelligence (AI) is to pick a few companies that you think will likely be the biggest winners in the future. That's easier said than done.

Investing in AI represents one of, if not the, key themes for tech investing in the years to come. It has already made a huge contribution for investor portfolios this year after a healthy 2024.

The Robo Global Robotics and Automation Index ETF is rated a Buy for its global diversification, long track record, and exposure to robotics innovation. ROBO offers a unique mix of mid- and small-cap international equities, with significant allocations to Asia and industry leaders like FANUY and KYCCF. AI advancements are accelerating automation, making both ROBO and the WisdomTree Artificial Intelligence and Innovation Fund ETF compelling complementary holdings.

 Amid the push to reshore, the United States faces a clear challenge when it comes to labor. Even though manufacturing has been contracting (PMI below 50 for more than two years), the U.S. still has 380,000 unfilled manufacturing jobs.

Keeping up with the latest tech trends can be challenging, but doing so can allow you to rake in significant returns in the long run. The problem, however, is that even if you find the next big area of tech to focus on, you also have to decide which stock to buy, since not every business involved is going to be a winner.