Have you ever wanted to invest in your own robot? Maybe a maid
to clean your house like Rosie from The Jetsons?
The idea sounds far-fetched and it may be in 2013, however
there are robotics being used all around the globe by individuals
and corporations to improve production and output.
The ROBO-STOX Global Robotics & Automation ETF (NYSE:
) was launched this week and offers investors the first
opportunity to invest money in robot-related companies.
ETF Outlook for October 30, 2013
According to the ETF provider, ROBO tracks the first index to
benchmark the value of robotics, automation, and related
technologies. Because there are only a few pure-play robotics
companies the index expands to include companies that have ties
to the above-mentioned niche sectors.
There are currently 77 stocks that make up the ETF with 20 of
them considered the bellwether companies.
Some of the more popular names include 3D Systems (NYSE:
), a maker of 3-D printing systems and iRobot (NASDAQ:
), the maker of the self-cleaning vacuum the Roomba.
Along with the names investors would assume are in a robotics
ETF, there are a few names that may stand out. Energy company,
) and machinery maker Deere & Co. (NYSE:
) are two such names that are not often tied to robotics.
A positive is that the largest holding in the ETF only makes
up 2.2 percent of the allocation, giving investors
diversification in the area.
The U.S. accounts for 36 percent of the portfolio with Japan
making up 25 percent. Because the companies are often narrowly
focused, 80 percent of the stocks in the ETF fall into either the
small-cap or mid-cap asset class.
How much money ROBO is able to attract and how well it will
perform is yet to be seen, but it sure will raise some eyebrows
in the coming weeks. From a pure investment viewpoint the makeup
of the ETF looks attractive and the only potential red flag is
the above-average expense ratio of 0.95 percent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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