Global robotics and automation ETF goes live on Nasdaq

Oct 23rd, 2013 | By | Category: Equities

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Exchange Traded Concepts has announced the launch of the Robo-Stox Global Robotics and Automation Index ETF (ROBO), the latest exchange-traded fund to begin trading through the firm’s private-label ETF platform.

Global robotics and automation ETF goes live on Nasdaq

Nasdaq-listed ROBO provides exposure to companies operating in the global robotics and automation industries.

The fund, which has been listed on Nasdaq, seeks to provide investment results that correspond, before fees and expenses, to the price and yield performance of the Robo-Stox Global Robotics and Automation Index – the world’s first index to benchmark the performance of stocks in the robotics and automation industries and related technologies.

Companies eligible for inclusion in the index must derive a portion of revenues and profits from robotics- and automation-related products and services. This can include any technology, service or device that supports, aids or contributes to any type of robot, robotic action or automation system process, software or management. Examples include unmanned vehicles, software that enables virtualized product design and implementation, 3D printers, navigation systems, and medical robots or robotic instruments. Eligible companies must also have a market capitalization exceeding $200 million and a minimum trailing 1-year average daily volume of $200,000.

The index consists of a mix of “bellwether” stocks, securities of companies that Robo-Stox, the index provider, believes are indicative of the performance of robotics and automation companies as a whole, and “non-bellwether” stocks, securities of companies that have a distinct segment of their business involved in robotics- or automation-related areas that Robo-Stox believes will drive higher revenues as such products or services expand. Index components are generally weighted 40% bellwether stocks and 60% non-bellwether stocks.

The index, which is rebalanced quarterly, consists of securities of both US and foreign issuers, including securities of issuers located in emerging market countries. It is anticipated that, under normal circumstances, at least 40% of index components will be non-US issuers. Currently, a significant portion of the index consists of Japanese companies.

Rob Wilson, CEO of Robo-Stox, said: “The growing affordability of robotic productivity gains, coupled with expanding technological capabilities, have moved this sector beyond the ‘tipping point,’ and the adoption of related technologies across multiple industries should continue to accelerate. By introducing the first comprehensive and focused measure of the value of robotics, automation and related technologies, we are giving investors the world’s first benchmark by which to track the growing field of robotics.”

J. Garrett Stevens, CEO of Exchange Traded Concepts, added: “Rob Wilson and his team at Robo-Stox, LLC are another fantastic example of the kind of innovative and avant-garde partners ETC is lucky to have developed a relationship with. The cutting-edge concept and development of ROBO has been an exciting education for ETC and we are confident the time for a fund of this nature is now.”

The fund has an annual management fee of 0.95%.

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