New Robotics and Automation ETF: ROBO

Exchange Traded Concepts announces the launch of the ROBO-STOX^TM Global Robotics and Automation Index ETF (ticker symbol:ROBO), the latest exchange-traded fund that began trading yesterday.

Overall, ROBO tracks a robotics and automation index created by Robo-Stox. That index consists of 77 U.S. and overseas companies involved in robotics and automation. No company currently accounts for more than 2.22% of the index. In addition, 40% of the index consists of stocks that Robo-Stox considers bellwethers for the field, while 60% are seen as non-bellwethers but related to robotics and automation.

Some of the ETF’s holdings are probably what can be easily guessed, such as iRobot (IRBT), robotic surgery pioneer Intuitive Surgical (ISRG)  and aerial drones maker AeroVironment (AVAV).

 Robo-Stox, one of the companies behind the ETF, says that it evaluates companies across industries for inclusion, since pure-play robotics companies are extremely rare. So, some of the holdings may be surprising to some, such as tractors maker Deere (DE) and Oceaneering International (OII), a provider of oilfield services and products. 

 ROBO also provides a little exposure to 3D printing via holdings like 3D Systems (DDD). An expert at Schneider Electric(FR:SU ; also one of the ETF’s holdings) has said 3D printing will become an integral part of industrial automation.

 ROBO's expense ratio is 0.95%.