ETF Securities ROBO ETF (ASX:ROBO)
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.
What does the ROBO invest in?
ROBO invests in all the shares that make up the ROBO Global Robotics and Automation Index, closely in proportion to their index weights. For the selection process, the Index classifies companies as either “bellwether” stocks (where a majority of business is related to robotics and automation) or “non-bellwether” stocks (where only a distinct portion of business is involved in robotics and automation). The Index then allocates 40% to bellwether companies and 60% to non-bellwether companies.
What do investors use ROBO for?
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.
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