Horizons ETFs has launched the Horizons Robotics and Automation Index ETF (ROBO) on the TSX. With a management fee of 0.75% plus applicable sales taxes, it’s the first Canada-listed ETF to offer global exposure to the rapidly growing robotics and automation industry.
ROBO seeks to track the performance of the ROBO Global Robotics and Automation Index, which is designed by ROBO Global, a leading investment research and index provider covering the robotics, automation, and artificial-intelligence industries. It comprises more than 80 stocks from rapidly developing robotics- and/or automation-related companies listed in 14 different countries across 12 sub-sectors.
“Despite the quick ascendency of the robotics, automation and artificial intelligence sectors, it's still in its very early days,” said Steve Hawkins, president and co-CEO of Horizons ETFs. “This could be the largest untapped investment opportunity for Canadian investors, particularly since very few likely own these stocks in their equity portfolios."
The equity securities in ROBO will mainly come from issuers within the index, and its US currency exposure will be hedged to the Canadian dollar at all times. Horizons ETFs has partnered with ROBO Global, which launched the original US-domiciled Robo Global Robotics and Automation ETF, to find issuers that derive significant revenues from robotics and automation.
“We're excited to partner with Horizons ETFs to potentially enhance the portfolios of Canadian investors, by giving them an easier way to access the sector of robotics, automation and artificial intelligence,” said Travis Biggs, CEO of ROBO Global, US.
The US-based version of ROBO has posted the fastest year-to-date growth among all US ETFs in the US. Between Jan. 1 and Oct. 31, it grew from US$134.7 million to nearly US$1.7 billion in AUM. According to an outlook by Allied Market Research from May 2015, the global robotics technology market is anticipated to reach US$82.7 billion by 2020.
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