Rise of the machines

Are the machines taking over? The field of robotics is a major subset within automation. Industries like autos and healthcare are already using robots to make their processes more efficient: for instance, autonomous – or self-driving – vehicles is currently the most in vogue use of robotics in the autos industry; in healthcare, robots are used extensively to make medical equipment – and others to read and process your x-ray scans without any human intervention. It doesn’t stop there: Statista predicts the global robotics market will grow from $39 billion of annual revenue in 2017 to $500 billion in 2025. Maybe the machines really are taking over… 🤖

How can I invest in robotics? In a roundabout way, you might already be doing so – or at least, investing using a robot – if you use robo advisors to manage your investments. They use automated algorithms to invest your money with minimal human supervision.

But putting that aside, individual public companies that offer exposure to robotics include iRobot, KUKA, Cognex, and Fanuc – as well as ABB and Rockwell Automation mentioned earlier. There are also a handful of ETFs tracking the theme including the ROBO Global Robotics and Automation ETF, the Global X Robotics & Artificial Intelligence ETF, and the iShares Robotics and Artificial Intelligence ETF. A more daring option would be actively managed funds, where an investment manager picks individual stocks they think will outperform: two such funds include Pictet – Robotics and AXA Framlington Global Technology.