What does the ROBO ETF do for a diversified portfolio?
The ETFS ROBO ETF provides investors with exposure to the global value chain of robotics, automation and artificial intelligence (RAAI) related companies. Some investors consider RAAI-related companies as disruptors to industries across the globe and thus, a ‘thematic’ or ‘megatrend’ to invest in.
The ROBO ETF could be used by Australian investors to gain exposure to the RAAI investment thematic. These are companies that have the potential to disrupt industries around the world, and the ROBO ETF provides investors with a means to participate in this high growth and rapidly evolving megatrend.
How big is the Global X ROBO ETF?
The Global X ROBO ETF had $213.99 million of money invested when we last pulled the monthly numbers. Given ROBO’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
ROBO ETF fees reviewed
Global X charges investors a yearly management fee of 0.69% for the ROBO ETF. This means that if you invested $2,000 in ROBO for a full year, you could expect to pay management fees of around $13.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the ROBO ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Global X ROBO report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.