ROBO

Exposure to the growing trend for robotics and automation

Invest in robotics, automation and artificial intelligence (RAAI) through the ETFS ROBO Global Robotics and Automation ETF (ASX Code: ROBO)

ABOUT ROBO

ROBO aims to provide investors with a return that (before fees and expenses) tracks the performance of the ROBO Global Robotics and Automation Index. ROBO uses a full-replication strategy to track the index, meaning it holds all the shares that make up the index in proportion to their index weights.

The index comprises up to 200 global companies related to robotics, automation, and artificial intelligence in areas such as manufacturing, 3D printing, logistics and security. These are identified by ROBO Global’s strategic advisory board of experts in these fields. The index incorporates additional market capitalisation and trading volume criteria as well as the application of ROBO Global’s ESG policy.

Why consider ROBO?

• Exposure to the growing robotics, automation and artificial intelligence theme.

• Access to the expertise of ROBO Global, a recognised leader in RAAI solutions.

• Diversification into areas that are underdeveloped in the Australian market.

• Liquid and transparent.

FAQs

What sub-sectors are included in ROBO?

The ROBO Global subsectors are grouped by technology and applications.

Technology captures the critical intelligent systems that interact with the human world, including actuation, sensing, computing and integration.

Applications refer to specific and evolving areas of industry and society where this technology is deployed, including food and agriculture, 3D printing, security, healthcare, material handling, manufacturing, energy and consumer products.

ROBO is sector-agnostic, spanning many different types of businesses across multiple sectors and regions.

What weighting system does ROBO use?

ROBO uses a 2-tier equal weighting system.

Equal-weighting means each holding makes-up the same portion of the portfolio and therefore contributes equally to overall performance.

The choice of an equal-weighting scheme gives investors exposure to the overall theme by allowing all stocks to contribute equally to returns. Large-cap stocks do not dominate as they do where holdings are weighted by market capitalisation.

The two tiers are known as Bellwether holdings and Non-Bellwether holdings. Bellwether holdings are those where the majority of the business is related to robotics and automation. These holdings represent 40% of the index. Non-Bellwether holdings are companies where a portion of their business is involved in robotics and automation. Non-Bellwether holdings account for 60% of the index.

How can I use ROBO in a portfolio?

ROBO may be used as a tool to express long-term strategic or short-term tactical views on the growing trend for robotics, automation and artificial intelligence.

It can also aid portfolio diversification via investment in emerging industries that are largely not present in the Australian market.

ROBO fits in the framework of core-satellite portfolios. It allows investors who have conviction in RAAI to express their views in their portfolios.