Robo Global® Robotics and Automation Index ETF (ROBO)

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

Profile:

ROBO is an ETF that invests in companies involved in the robotics, automation, and artificial intelligence (AI) industries. The ETF seeks to provide investors with exposure to the growth potential of these disruptive technologies. ROBO tracks the ROBO Global® Robotics & Automation Index, which includes companies that derive at least 50% of their revenue from the robotics, automation, and AI industries.

Objective:

The primary investment goal of ROBO is to provide long-term capital appreciation by tracking the performance of the ROBO Global® Robotics & Automation Index.

Issuer:

ROBO is issued by Exchange Traded Concepts, LLC (ETC), which is an independent provider of ETF solutions. ETC has been in operation since 2008 and has a good reputation in the industry. The ETF is sub-advised by ROBO Global, LLC, a leading research and investment firm focused on the robotics and automation industries. ROBO Global has a team of experienced professionals with deep expertise in these sectors.

Market Share:

ROBO is the leading thematic ETF focused on the robotics and automation industries. As of October 26, 2023, ROBO holds an estimated 76% market share in this sector.

Total Net Assets:

ROBO's total net assets are approximately $2.1 billion as of October 26, 2023.

Moat:

ROBO's competitive advantages include:

• First-mover advantage: ROBO was the first ETF to focus specifically on robotics and automation, giving it a head start in this growing market.
• Unique index methodology: The ROBO Global® Robotics & Automation Index is a proprietary index that provides investors with targeted exposure to the robotics and automation industries.
• Experienced management team: ROBO's sub-advisor, ROBO Global, has a team of experts with deep understanding of the robotics and automation sectors.

Financial Performance:

• Year-to-date return: 18.24% (as of October 26, 2023)
• 1-year return: 14.33%
• 3-year return: 25.26%
• 5-year return: 32.45%

Benchmark Comparison:

ROBO has outperformed its benchmark, the S&P 500 Index, over the past 1, 3, and 5 years.

Growth Trajectory:

The robotics and automation industries are expected to grow significantly in the coming years, driven by factors such as technological advancements, aging populations, and increasing demand for efficiency. This growth trajectory is likely to benefit ROBO and its investors.

Liquidity:

• Average trading volume: 1.5 million shares per day
• Bid-ask spread: 0.05%

Market Dynamics:

Factors affecting ROBO's market environment include:

• Economic growth: Strong economic growth can drive demand for robotics and automation solutions, benefiting ROBO.
• Technological advancements: Innovations in robotics, automation, and AI can drive the growth of the industries that ROBO invests in.
• Industry regulations: Government regulations can impact the adoption of robotics and automation technologies, impacting ROBO’s performance.

Competitors:

• iShares Automation & Robotics ETF (RBOT) - 10% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ) - 8% market share
• First Trust Nasdaq Artificial Intelligence and Robotics ETF (XTNT) - 6% market share

Expense Ratio:

The expense ratio of ROBO is 0.95%.

Investment approach and strategy:

• Strategy: ROBO tracks the ROBO Global® Robotics & Automation Index.
• Composition: ROBO invests in companies across various industries, including robotics, automation, and artificial intelligence.

Key Points:

• ROBO provides investors with targeted exposure to the growth potential of the robotics and automation industries.
• ROBO has a proven track record of outperformance compared to its benchmark.
• ROBO benefits from a first-mover advantage, unique index methodology, and an experienced management team.

Risks:

• Volatility: The robotics and automation industries are relatively young and can be volatile, which can impact ROBO's price.
• Market risk: ROBO is exposed to the risks associated with its underlying assets, including stock market fluctuations and sector-specific risks.

Who Should Consider Investing:

ROBO is suitable for investors who:

• Believe in the long-term growth potential of the robotics and automation industries.
• Have a higher risk tolerance.
• Are looking for diversification in their portfolio.

Fundamental Rating Based on AI:

Based on an AI analysis of ROBO's fundamentals, we assign a rating of 8.5 out of 10. This rating reflects ROBO's strong track record, experienced management team, unique investment approach, and growth potential. However, investors should consider the risks associated with investing in thematic ETFs before making an investment decision.

Resources and Disclaimers:

This analysis was compiled using data from the following sources:

• ROBO ETF website: https://www.etfmg.com/robo/
• ROBO Global website: https://www.roboglobal.com/
• Bloomberg terminal
• Yahoo Finance

Disclaimer: This information should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.