Bullish about artificial intelligence and robotics? Buy this ASX ETF

Could this fund be an exciting addition to an investment portfolio?

| More on:
Robot hand and human hand touching the same space on a digital screen, symbolising artificial intelligence.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Artificial intelligence (AI) and robotics are no longer futuristic concepts confined to sci-fi movies.

They are rapidly transforming industries, from healthcare and manufacturing to finance and transportation.

And while the local share market may not have any quality options in the space, that doesn't mean that Aussie investors can't gain exposure to this rapidly growing area of the technology sector. Not when there are ASX ETFs that

For example, investors looking to capitalise on this technological revolution might want to consider the Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ).

Why invest in AI and robotics?

AI is increasingly embedded in everyday life. Whether it's powering virtual assistants, revolutionising medical diagnostics, or driving autonomous vehicles, AI is rapidly reshaping the global economy.

The rise of machine learning, automation, and smart robotics means that companies at the forefront of these fields could potentially deliver outsized returns over the long term.

Similarly, robotics is playing an important role in industries such as logistics, precision manufacturing, and even surgery. With ongoing advancements in automation and AI-driven robotics, companies leading this charge stand to benefit from significant long-term growth.

The Betashares Global Robotics and Artificial Intelligence ETF

The Betashares Global Robotics and Artificial Intelligence ETF provides investors with exposure to a diversified portfolio of global companies that are driving advancements in AI and robotics.

It aims to track the Indxx Global Robotics & Artificial Intelligence Thematic Index before fees and expenses. This index includes companies involved in industrial robotics and automation, artificial intelligence-driven technologies, unmanned vehicles and drones, non-industrial robotics.

By investing in this ASX ETF, investors gain access to a broad selection of companies leading AI and robotics innovation without needing to pick individual stocks.

Key holdings in this ASX ETF

While Nvidia (NASDAQ: NVDA) is the ETF's largest holding—unsurprising given its dominance in AI-focused semiconductors—the fund also includes a diverse mix of companies across multiple industries.

One standout is Intuitive Surgical (NASDAQ: ISRG), which is a leader in robotic-assisted surgery systems. Its Da Vinci surgical platform has revolutionised minimally invasive procedures, which demonstrates the increasing role AI-powered robotics could play in healthcare.

Industrial automation companies like ABB and Keyence Corp are also featured in the fund. These companies are at the forefront of factory automation and smart manufacturing, helping businesses boost efficiency and reduce costs.

Additionally, Dynatrace (NYSE: DT) is a notable holding. It provides AI-powered monitoring solutions that help businesses optimise their digital infrastructure, ensuring applications and systems run smoothly.

Foolish takeaway

The AI and robotics sectors are still in their early stages of growth, meaning that investors today are potentially getting in on the ground floor of a long-term megatrend.

AI is expected to become an even bigger economic driver in the coming decades, and companies leveraging automation will likely gain a competitive edge. It is no wonder then that Betashares recently named this ASX ETF as one to buy for AI exposure.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Intuitive Surgical and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

Man holding out Australian dollar notes, symbolising dividends.
ETFs

5 amazing ASX ETFs to buy with $2,500 this month

These funds offer easy access to some quality stocks. Here's what you need to know about them.

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
ETFs

3 super ASX ETFs to buy and hold until 2030

Looking to grow your wealth? Here are three options to consider.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
ETFs

These ASX income ETFs could be perfect for retirees

Let's see what these funds offer investors.

Read more »

Global technology shares
ETFs

3 ASX ETFs that give you instant access to the world's best stocks

Want to invest in the world's best stocks? Then check out these funds.

Read more »

A smug young man points to his chest feeling proud that he invested in Polynovo shares which are rising today amid a market sell-off
ETFs

Why investors ploughed a record $5.82 billion into ASX ETFs last month

ASX ETFs enable investors to buy a basket of shares in a single trade for one brokerage fee.

Read more »

A man looks surprised as a woman whispers in his ear.
ETFs

3 fantastic ASX ETFs for beginner investors

Starting your investment journey? Here are three funds to consider.

Read more »

Woman customer and grocery shopping cart in supermarket store, retail outlet or mall shop. Female shopper pushing trolley in shelf aisle to buy discount groceries, sale goods and brand offers.
ETFs

These ASX ETFs could help you beat the market

You might have a shot at beating the ASX with these funds.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
ETFs

Why this ASX ETF could be the best long-term investment you make

This fund is an easy way to invest like Warren Buffett.

Read more »