Global Robotics & Automation Index ETF

[freedom2022]

Hi,

More robots are coming to the workplace in the future.
Anybody invest in ROBO, Global Robotics & Automation Index ETF?
Any thought?
Thanks.

 

[Sunset]

They are already here.
Resistance is Futile.

"There were 12 million robotic units worldwide in 2020."
"The number of robotic units sold in 2020 rose to 465,000."

https://techjury.net/blog/robotics-industry-statistics/

 

[Luvtoride]

They are already here.
Resistance is Futile.

"There were 12 million robotic units worldwide in 2020."
"The number of robotic units sold in 2020 rose to 465,000."

https://techjury.net/blog/robotics-industry-statistics/

Interesting article but it is very general with tons of statistics and very few specific examples of companies and applications in the space.

I just invested in a SPAC that brought a Robotic Surgical instrument company public. Who knows which will be the winners and losers in this field?

 

[Bamaman]

Most automobile factories today will have almost 200 robots of all kinds, including painting, etc. And it takes about two technicians per robot on average to keep'em running.

So many car factories have been built in our state that our local community college has an immense school of robotics. It's paid off with the new Mazda-Toyota factory being completed close by with 4,000 new employees.

But as far as investing in robot related businesses, it's unclear who the suppliers of robots are. Names of companies are not commonly known even. Obviously it's a large industry, however.

 

[ERD50]

Hi,

More robots are coming to the workplace in the future.
Anybody invest in ROBO, Global Robotics & Automation Index ETF?
Any thought?
Thanks.

From a standpoint of personal investing, does it matter?

If everyone is aware it is a growth industry, then aren't those stocks already bought up to that level of expectations? So doesn't that mean those stocks have to do better than expectations, and that's a paradox, to expect them to do better than expected?

So I guess the question becomes not is this a growth industry, but is it currently undervalued? Which means everyone else is wrong? What insight do you have to know better than 'everyone'?

-ERD50

 

[chassis]

I have special knowledge on the topic, not the etf.

The etf in my view is a buzzword product meant to capture money from people who just read an article about robots and automation. Likely won’t return better than the SP500.

Robots and automation are real and are a growth area. Investing in this is like anything else- you need to know how to assess companies and their prospects. A catchy-labeled etf isn’t meaningful in my view.

Side comment: funds, mainly etfs, are getting dumbed down so Karen the Kindergarten teacher can invest in her 403b. Nothing wrong with Karen or kindergarten teachers, but the dumbing down of investments needs to be noted. The list of holdings might be pretty but the fund performance will likely be a lot like vanilla ice cream, possibly vegan no sugar vanilla ice cream.

 

[freedom2022]

I have special knowledge on the topic, not the etf.

The etf in my view is a buzzword product meant to capture money from people who just read an article about robots and automation. Likely won’t return better than the SP500.

Robots and automation are real and are a growth area. Investing in this is like anything else- you need to know how to assess companies and their prospects. A catchy-labeled etf isn’t meaningful in my view.

Side comment: funds, mainly etfs, are getting dumbed down so Karen the Kindergarten teacher can invest in her 403b. Nothing wrong with Karen or kindergarten teachers, but the dumbing down of investments needs to be noted. The list of holdings might be pretty but the fund performance will likely be a lot like vanilla ice cream, possibly vegan no sugar vanilla ice cream.

Would you like to share any specific stocks that you pick?

 

[chassis]

The usual Buffett/Lynch criteria - the gold standards for a good business.

Growing revenue
Strong gross margin
Strong 1/3/5/10 year total return
Low debt

I broaden the circle to include any "tech" company involved in Industry 4.0 or IIoT (Industrial Internet of Things). The number of companies in this bucket are so numerous that there are many good ones to choose from. Microsoft, for instance is involved in Industry 4.0 and IIoT. MSFT is one recommendation, there are dozens of others.

Productivity is a necessary (necessary means it is required) building block to higher standard of living. Any company whose products or services are proven to improve productivity scores high marks on my investing screening process.

Robotizing and automation is not new, however it is taking the next couple of steps forward. The market for boring products like wireless routers, CAT5 cable and the like is expanding in an underserved segment: factories and industrial companies. You would be amazed at the high percentage of industrial companies that do not have computers covering the factory floor, monitoring or controlling the production process.

Lots of computers in manufacturing companies are on the factory floor, scrolling slides of the latest retirement party and the cafeteria lunch menu, or announcing the next yoga-at-lunch session.

 

[freedom2022]

Thanks for responding to my question.
Do you think CEO is also an important factor?
Under Steve Ballmer, Microsoft was flat. Under Satya Nadella the stock reach high.
Although the QE helps.

 

[RobbieB]

I've been working in this field (automation) my entire career. Been through 8 jobs in 36 years. Never been worried about employment.

You just have to ask yourself a question; Do you see more or less automation in the future?

 

[BooBoo]

You just have to ask yourself a question; Do you see more or less automation in the future?

Well do you punk ?

 

[ncbill]

You just have to ask yourself a question; Do you see more or less automation in the future?

Well do you punk ?

Old Glory Insurance

 

[BooBoo]

I might have to add Old Glory to the retirement budget.

 

[target2019]

ROBO Etf has about 90 companies and M* calls it mid-growth. So you're capturing smaller companies than you'd find in QQQ. The expense ratio is 1% approximately. I guess it could work for some.

 

[SecondAttempt]

I do not follow ROBO but have been watching another robotics ETF, BOTZ. I am and have been familiar with many of the companies it holds as an engineer for at least 2-3 decades and would not invest in any of them. So why would I buy the ETF?

Automation, IIoT etc are very real and very important. But they are being driven by plummeting prices for devices. That puts the companies in that field in peril but benefits the customers enormously. One of BOTZ big holdings has been producing its product for almost a century and is highly regarded. Enter a Chinese startup making a slightly inferior product that is "good enough" and I think you will see 2 bankruptcies - the old company because they are undercut on prices and the Chinese company because they are not charging enough and tick customers off with poor service and reliability. But the companies that automate at low prices will do well over time from increased productivity. But they are not in the robotics ETFs!

I think it is a lot like the dotcom boom of 21 years ago. The benefits of the internet have proven to be real. But even most of the most solid leaders of the late 90s are gone and investors lost everything.

 

[Markola]

I might have to add Old Glory to the retirement budget.

Joe Namath will probably soon be hawking it endlessly to pad his own retirement budget.

 

[oiseux]

I do not follow ROBO but have been watching another robotics ETF, BOTZ. I am and have been familiar with many of the companies it holds as an engineer for at least 2-3 decades and would not invest in any of them. So why would I buy the ETF?
snip

I always felt that my opinion of a company wasn't always matched by the street, hence inherent risk in being too close to the subject matter.

Automation, IIoT etc are very real and very important. But they are being driven by plummeting prices for devices.
snip

That's quite true of IoT and automation -- the hardware will have prices driven down tremendously (look how many M2M module businesses have been sold off). But in robotics, the real value will be in the development environment, software and services. That customize training and integration that unlocks the productivity in the factory won't be coming from a generic device.

 

[joejetski]

I have a little in Robo, a little in BLOK, and a little in ICLN, add to them when they go down a lot. Someday I will pass those on to grandkids.

 

[SecondAttempt]

But in robotics, the real value will be in the development environment, software and services. That customize training and integration that unlocks the productivity in the factory won't be coming from a generic device.

I agree but those companies don't seem to have been founded yet or at least are not in the ETFs.

 

[SecondAttempt]

But in robotics, the real value will be in the development environment, software and services. That customize training and integration that unlocks the productivity in the factory won't be coming from a generic device.

I agree but those companies don't seem to have been founded yet or at least are not in the ETFs.