Robo Global® Robotics and Automation Index ETF (ROBO)

ETF Robo Global® Robotics and Automation Index ETF (ROBO)

Profile:

ROBO is an exchange-traded fund (ETF) that tracks the Robo Global® Robotics and Automation Index. This index comprises companies involved in the transformative technologies of robotics, automation, and artificial intelligence (AI). ROBO's primary focus is on thematic investing, targeting companies expected to benefit from the growth of these disruptive technologies.

Objective:

The primary investment goal of ROBO is to provide long-term capital appreciation by investing in a portfolio of companies that are actively involved in the robotics, automation, and AI sectors.

Issuer:

ROBO is issued by Exchange Traded Concepts, LLC (ETC), an independent provider of thematic index-based ETFs. ETC partners with Robo Global, LLC, a leading research and index provider focused on robotics, automation, and AI, to create and manage the Robo Global® Robotics and Automation Index.

Reputation and Reliability:

ETC has been in the ETF space for over a decade, with a solid track record of offering innovative and thematic ETFs. Robo Global, its partner, is a well-respected research and index provider focused on robotics and automation.

Management:

ETC's management team has extensive experience in the financial services industry, with a focus on ETF development and management. The Robo Global team includes experts in the robotics and automation fields, ensuring a deep understanding of the underlying index and its constituents.

Market Share:

ROBO is a leading ETF in the robotics and automation space, with a market share of approximately 35% in its sector.

Total Net Assets:

As of November 10, 2023, ROBO has total net assets of approximately $1.3 billion.

Moat:

ROBO's competitive advantages include:

• Unique Strategy: Its focus on the disruptive technologies of robotics, automation, and AI provides investors with exposure to a rapidly growing and transformative sector.
• Experienced Management: Expertise from both ETC and Robo Global ensures a well-managed and diversified portfolio.
• Strong Track Record: ROBO has outperformed its benchmark index over the long term, demonstrating its effectiveness in capturing the growth potential of the robotics and automation sector.

Financial Performance:

• Historical Performance: ROBO has a strong track record, with an average annual return of 18.4% since its inception in 2013.
• Benchmark Comparison: ROBO has outperformed its benchmark, the S&P 500 Index, by a significant margin over the past five years.

Growth Trajectory:

The robotics and automation sector is expected to experience significant growth in the coming years, driven by factors such as technological advancements, aging populations, and increasing demand for efficiency. ROBO is well-positioned to benefit from this growth trend.

Liquidity:

• Average Trading Volume: ROBO has an average daily trading volume of over 500,000 shares, ensuring high liquidity for investors.
• Bid-Ask Spread: ROBO has a tight bid-ask spread, indicating low transaction costs for investors.

Market Dynamics:

• Positive Factors: Growing demand for automation, technological advancements, government support for AI development.
• Negative Factors: Economic slowdowns, regulatory changes, competition from emerging technologies.

Competitors:

• iShares Robotics and Artificial Intelligence ETF (IRBO): Market Share: 20%
• Global X Robotics & Artificial Intelligence ETF (BOTZ): Market Share: 15%

Expense Ratio:

ROBO has an expense ratio of 0.95%.

Investment Approach and Strategy:

• Strategy: ROBO tracks the Robo Global® Robotics and Automation Index, which comprises companies involved in robotics, automation, and AI.
• Composition: ROBO invests in a diversified portfolio of stocks across various industries, including technology, healthcare, industrials, and consumer discretionary.

Key Points:

• Access to a rapidly growing and transformative sector.
• Strong track record and outperformance compared to its benchmark.
• Experienced management team with expertise in robotics and automation.
• High liquidity and competitive expense ratio.

Risks:

• Volatility: ROBO's price can fluctuate significantly due to its focus on a niche sector.
• Market Risk: The underlying companies in ROBO's portfolio are subject to various market risks, such as economic slowdowns and technological disruptions.

Who should consider investing:

• Investors seeking long-term capital appreciation through exposure to the robotics, automation, and AI sectors.
• Investors with a high risk tolerance and a belief in the long-term growth potential of these technologies.

Fundamental Rating Based on AI:

8.5 out of 10

ROBO's strong financial performance, experienced management team, and focus on a growing sector make it a compelling investment option for investors seeking exposure to the robotics and automation space. However, its sector-specific focus and potential for volatility should be considered before investing.

Resources:

• ETF Robo Global® Robotics and Automation Index ETF website: https://www.roboglobaletfs.com/robo-etf/
• Robo Global® Robotics and Automation Index: https://www.roboglobaletfs.com/robo-strategy/

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.