Last week I covered the growing upside for the global robotics industry.
Investment, development and application are all reinforcing the case for investment in this sector.
In good news for those interested in this space, the team at Global X have just announced the new Global X Humanoid Robotics ETF (ASX: HMND).
Image source: Getty Images
Fund overview
The Global X Humanoid Robotics ETF (HMND) aims to capture the next phase of AI as intelligence moves into the physical world.
Global X said it includes companies across humanoid and service robotics, industrial and autonomous systems and assistive technologies. It also targets the underlying AI and hardware stack that powers next-generation robotics.
Selection is based on measurable exposure to the theme, ensuring that constituents derive a meaningful portion of their revenues from relevant activities.
By taking a value chain approach, the strategy avoids relying on a narrow set of early-stage manufacturers and instead provides exposure to the broader infrastructure required for humanoid robotics to scale globally.
The fund includes 30 underlying holdings.
The majority of the fund includes companies based in China (37.03%), South Korea (30.50%) and The United States (26.45%).
The management cost is 0.57% per annum.
The case for humanoid robotics
According to a new report from Global X, the global economy is entering the next phase of the AI cycle. Intelligence is now extending beyond software and into the physical world.
The report said the past decade has been defined by digital platforms and computing. However, the next phase is centred on applying that intelligence to real-world tasks through robotics.
Humanoid robots are designed to operate within human environments, enabling automation across a far broader set of use cases than traditional industrial systems. This shift is not incremental as it reflects a transition from automating processes to replicating human capability.
As labour constraints intensify, productivity growth remains constrained, and capital continues to flow into AI, the convergence of robotics and artificial intelligence is beginning to unlock a new multi-year investment cycle that extends well beyond the factory floor.
AI and robotics funds
Global X is an ETF provider that has built out a considerable list of thematic ASX ETFs.
The new Global X Humanoid Robotics ETF, is the latest to target robotics and AI.
For investors looking for other ASX ETFs in this sector, some options include:
- Etfs Robo Global Robotics And Automation ETF (ASX: ROBO) – seeks to invest in companies that potentially stand to benefit from increased adoption and utilisation of robotics and artificial intelligence.
- Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) – targets global companies involved in the production or use of robotics and robotics-focused AI products and services.
