ROBO Global Robotics & Automation Index ETF

ROBO

Market cap $1.41B

Todd Rosenbluth, head of research at VettaFi, joined host Nate Geraci this week on ETF Prime to preview five key ETF stories to watch in 2026 following a record year that saw nearly $1.5 trillion in net inflows.

There is no question that 2026 is already set up to be something of a continuance of 2025, at least in the sense of moving deeper into the world of AI, automation, and robotics.

Thematic investors are split between two big future bets: robotics and electric vehicles.

The global economy is entering a supercycle defined by the marriage of AI (the brain) and robotics (the body). At VettaFi's 2026 Market Outlook Symposium, the conversation shifted from speculative hype to tangible utility.

For the past year, the artificial intelligence (AI) narrative has centered largely on enterprise efficiency and consumer-facing chatbots. However, a distinct shift is underway in Washington that is redefining the sector's growth trajectory.

ROBO is the first ETF in the world dedicated to robotics and automation, one of the few that in my opinion really manages to isolate the robotics trend. This, however, comes at a cost, high, equal to an expense ratio of 0.95%, even though at its core there is a sort of passive replication. If compared to AI ETFs or technology ETFs, ROBO underperforms, proving to be less competitive.

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.