Best Robotics ETFs of 2024-25: Top Performing Funds

Robots are no longer science fiction. They build cars, help doctors, and even clean homes. In 2024 and 2025, the robotics industry is growing fast. Many companies are using robots to save time and money. As this trend rises, more investors want a piece of the action.

But buying single tech stocks can be risky. That’s why robotics ETFs come into discussion. They give us a smart way to invest in many robotics companies at once. We don’t have to pick winners on our own. These ETFs do it for us.

Let’s find out the best robotics ETFs of 2024-25. We’ll look at what makes them strong, how they performed, and why they’re worth watching.

Why Invest in Robotics ETFs?

The robotics industry is growing fast. In 2024, it’s valued at about $78 billion and is expected to reach $165 billion by 2029. This growth is happening because of new AI tools, more robots, and their use in factories and hospitals.

Investing in robotics ETFs offers several benefits:

ETFs include many companies, reducing the risk associated with investing in a single stock.
ETFs spread investments across various firms. It help manage potential losses.
Long-Term Growth: As technology advances, robotics is expected to play a bigger role in our lives, making ETFs a smart choice for future-focused investing.

Factors to Consider Before Investing

Consider the following before investing in robotics ETFs:

Larger funds with high trading volumes are generally more stable and easier to buy or sell.
This is the annual fee charged by the fund. Lower expense ratios can lead to higher net returns over time.
Look at the companies included in the ETF and ensure they align with your investment goals.
Historical performance not a guarantee of future results, can provide insight into the fund’s management and strategy.
Some ETFs focus on U.S. companies, while others include global firms. Consider your preference for domestic versus international exposure.

Top Performing Robotics ETFs in 2024–25

A. Global X Robotics & Artificial Intelligence ETF (BOTZ)

Performance: BOTZ has shown strong performance, benefiting from investments in leading tech companies.
Key Holdings: Includes companies like NVIDIA, Keyence Corp, and Mitsubishi Electric
Sector Breakdown: Industrials (42.32%), Technology (41.58%), Healthcare (12.54%)
Pros: Focused exposure to top robotics and AI companies.
Cons: Higher expense ratio at 0.68%.

B. iShares Robotics and Artificial Intelligence Multi Sector ETF (IRBO)

Strategy: Employs an equal-weight approach. It offers balanced exposure across its holdings.
Diversification: Includes global companies involved in robotics and AI.
Performance: As of the latest data, IRBO has a 1-year return of -0.45%.
Risk Factor: The equal-weight strategy may underperform in markets where large-cap stocks dominate.

C. ROBO Global Robotics and Automation Index ETF (ROBO)

Overview: ROBO offers exposure to a wide range of robotics and automation companies.
Performance: In Q2 2024, ROBO had a return of -5.6%, underperforming the broader market.
Stability: Despite short-term underperformance, ROBO provides diversified exposure to the robotics sector.

D. Other Noteworthy ETFs

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT): Focuses on companies engaged in AI and robotics.
ARK Autonomous Technology & Robotics ETF (ARKQ): Invests in companies involved in autonomous technology and robotics.

Trends Shaping Robotics ETF Growth

Several trends are driving the growth of robotics ETFs:

Robotics is being used more in manufacturing, defense, and healthcare to improve efficiency and reduce costs.
The rise of generative AI and machine learning is enhancing the capabilities of robots.
Global labor shortages are pushing companies to automate processes.
Companies like NVIDIA are investing in robotics technology, such as the Jetson Thor, to drive future growth.

Risks and Considerations

Investing in robotics ETFs offers growth potential but there are risks also:

Tech-heavy ETFs can experience significant price swings.
Changes in regulations can impact the robotics and AI sectors.
High-growth sectors may be more affected during market downturns.
Investors should be prepared for long-term investment horizons, as short-term gains may be limited.

Closing

Robotics ETFs offer a way to invest in a rapidly growing industry with applications across various sectors. These ETFs spread your money across top tech companies, which makes them a smart choice for long-term investing. However, it’s essential to consider the associated risks and conduct thorough research before investing.

Frequently Asked Questions (FAQs)

What ETF is heavy in AI?

The Global X Artificial Intelligence & Technology ETF (AIQ) focuses on AI companies. It includes Nvidia, Meta, and Microsoft. It offers broad exposure to the AI sector.

Is there a Robotics Index fund?

Yes, the ROBO Global Robotics and Automation Index ETF (ROBO) tracks companies in robotics and automation. It provides diversified exposure to the robotics industry.

What is the best AI fund?

The Global X Artificial Intelligence & Technology ETF (AIQ) is considered a top AI fund. It holds major tech firms and offers broad AI exposure.

What is the best AI ETF in 2024?

In 2024, AIQ stands out for its diversified AI holdings and strong performance. It includes companies like Nvidia and Meta.

Disclaimer:
This content is for informational purposes only and does not constitute financial advice or investment recommendations. Always do your own research before investing.