Investing

Investing in Robotics and Automation

  • Last Updated:
  • Dec 4th, 2017 9:41 pm
[OP]
Newbie
Dec 24, 2014
7 posts
North York, ON

Investing in Robotics and Automation

Hi all,

What are your views on the robotics and automation sector? Horizons just listed an index ETF covering this space (ROBO):
https://www.horizonsetfs.com/etf/robo

As far as I can tell, the holdings do not substantially overlap with whole market indices, because the companies are relatively small.

Thoughts?
5 replies
Member
Jun 2, 2017
470 posts
160 upvotes
Robotics/AI is a specialized space but definately has potential with the amount of investments going into it (i.e clients are spending on AI/Robotics Process Automation etc).

Another ETF to consider comparable to ROBO is BOTZ

https://www.globalxfunds.com/funds/botz/

I personally have some money in these.
Deal Addict
User avatar
May 11, 2014
4091 posts
4412 upvotes
Iqaluit, NU
I personally own shares of Fanuc and Sysmex in Japan. Fanuc you will see is the 2nd largest holding in the ETF you have posted. They are big in manufacturing robotics.

Sysmex is a hematology diagnostic analyzer manufacturer. They are currently developing more point of care systems which will reduce laboratory testing costs and are industry leaders in developing hematology diagnostic methods and mechanization. They took all the marketshare away from leaders such as Beckman Coulter and Abbott in hematology.

I like to look at single players if you have the ability to buy their shares. An ETF could be a quick, easy way to get in, however you have less control of knowing what you exactly are buying.
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Temp. Banned
Jun 18, 2008
5095 posts
4629 upvotes
Montreal
This one is a bit late to the party. There is BOTZ and ROBO in the US and both have had massive runs for ETFs. Should be ok long term but all these are made up of large Japanese companies so the economics of Japan should also be monitored. How much more can they run?
Newbie
Mar 7, 2015
43 posts
1 upvote
Scarborough, ON
ottofly wrote: This one is a bit late to the party. There is BOTZ and ROBO in the US and both have had massive runs for ETFs. Should be ok long term but all these are made up of large Japanese companies so the economics of Japan should also be monitored. How much more can they run?
That is an interesting opinion. Any one else care to chime in? Thinking about diversifying my portfolio, robotics imo seemed promising...looking for an industry/company I can lock in and hold for the next 3-5 years.
Deal Addict
Dec 3, 2014
2019 posts
1273 upvotes
Ontario
I have looked into this industry a little, but still know very little. You can also get exposure through some of the larger tech companies.
Is there a particular industry or market that robotics will address that you are after?

There are some interesting, and I would presume lucrative, applications in the medical industry, primarily for surgery.

I agree these have run-up, but the industry is still in its infancy. We don't see the application of robotics yet in our day-to-day lives unless one works in an advanced factory.

The company that had my eye was Mazor Robotics Ltd. (MZOR). I did not pull the trigger unfortunately before it took off and then it got away from me entirely, running up significantly from late March 2017 to end of October. It is starting to lose steam here and pulled back slightly in November.

Edit: As refreshing my memory on MZOR, noticed that some insider trading concerns were raised this AM, so do your due diligence. There are also lots of companies that can pop at any time. The industry is not dissimilar to biotech. A lot of action/trading in CVRS right now.

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