ROBO ETF passes $2bn AUM

Jan 22nd, 2018 | By | Category: Equities

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The ROBO Global Robotics & Automation Index ETF (ROBO US) has crossed the $2 billion threshold, having doubled its assets under management in the last five months. 

ROBO ETF passes $2bn

Nasdaq-listed ROBO has surpassed $2bn in assets. (file image)

The fund has returned 49% over the past year and 76% since its inception in 2013.

It is linked to the ROBO Global Robotics & Automation Index and was the first ETF to track the global robotics, automation and artificial intelligence sector.

The ETF is comprised of 89 stocks across 12 sub-sectors, focused on the entire robotics and automation value chain. Constituents include rapidly developing companies in the global robotics and automation industry.

US stocks contribute the largest geographic weight, at 40%, followed by Japan with 28%. The majority of stocks are mid-cap (52%); small-caps make up 25% and large-caps 23%.  

Whilst it has proved very popular with investors, is more expensive than your average ETF with an expense ratio of 95 bps.

A lower cost comparable ETFs is available from Global X Funds through its Global X Robotics & Artificial Intelligence ETF (BOTZ), which costs 68 bps and already has $2.4bn AUM despite launching some three years later than ROBO.

ROBO Global Indices are licensed in 11 countries and are calculated on nine exchanges throughout the US, Europe, Asia, Canada and Australia. Total AUM for investment products tracking the ROBO indexes is $3.2 billion to date.

In Europe it offers the $1.3bn ROBO Global Robotics and Automation GO UCITS ETF, issued by ETF Securities, soon to be part of LGIM. This ETF, which is based on a UCITS-compliant derivative of the same index, is listed across multiple exchanges including LSE, Euronext, SIX Swiss, Deutsche Börse and Borsa Italiana, and comes with a TER of 0.80%.

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