It’s without question that some of the most exciting (and profitable) investment opportunities in the last decade have been in the technology sector as our society has advanced digitally by leaps and bounds. When it comes to accessing technology stocks today, ETFs offer a plethora of ways to gain cheap, diversified exposure to the sector; furthermore, the ongoing growth of the ETF universe has spawned a number of industry-specific funds, allowing for investors to truly hone in on a particular theme [see 101 ETF Lessons Every Financial Advisor Should Learn].
Frank Tobe, Co-Founder of ROBO-STOX LLC and Editor of recently took time to discuss with us the newly launched ROBO-STOX Global Robotics and Automation Index ETF, a first-to-market fund offering exposure to what is arguably one of the most lucrative corners of the technology market.
ETF Database (ETFdb): What was the inspiration behind creating the ROBO-STOX Global Robotics and Automation Index ETF (ROBO)?
Frank Tobe (FT): We wanted to give investors an opportunity to capitalize on the ongoing growth of the worldwide robotics and automation sector. Prior to the launch of our ETF, there was no benchmark for investors to use when gauging investments in this industry.
We created the ROBO-STOX Global Robotics and Automation Index, which the ETF tracks, to give investors access to the most promising long-term robotics companies. The index finds the robotics stocks with the best long-term value potential, and investors can harness the growth of the companies in the index through our ETF.
The original inspiration was mine: I thought that robotics and automation was the next big thing. I’ve been tracking the industry for years but was joined last year by Rob Wilson, ROBO-STOX Co-Founder and CEO, who converted my database and expertise into a workable financial product: the index that underlies the ETF.
ETFdb: Broadly speaking, where do you view the robotics industry right now in terms of the technology adoption life cycle as a whole?
FT: The industry has reached a tipping point The adoption of, and demand for, robots continues to accelerate in several areas of the global economy: automobile and general manufacturing; military/defense and search-and-rescue; service robots involved in healthcare; and soon, agriculture. Some very innovative robots for use in these sectors are presently in the research-and-development phase.
