A company in Canada has launched a new investment vehicle for people interested in robotics, automation and related sectors.
Horizons ETFs Management, which is a subsidiary of the Mirae Asset Financial Group, is partnering with Robo Global in offering the exchange-traded fund, which will be called Horizons Robo.
Horizons Robo says it seeks to replicate the performance of the Robo Global Robotics and Automation Index.
The Index is designed to provide exposure to the performance of equity securities of robotics-related and/or automation-related companies.
Horizons Robo will be mainly invested in the equity securities of issuers within the Index and will seek to hedge its US currency exposure to the Canadian dollar at all times.
Comprising more than 80 stocks focused on the entire robotics and automation industry, the Index includes securities from rapidly developing companies around the world – listings can be found on exchanges in 14 different countries, across 12 sub-sectors.
As a rules-based Index, it employs specific investment criteria focused on companies that derive a portion of revenues and profits from robotics-related and/or automation-related products and / or services.
Steve Hawkins, president and co-CEO of Horizons ETFs, says: “We could be witnessing the most transformative technological change of our lifetime as robotics and automation start to become integral to much of what we do on a daily basis.
“Despite the quick ascendency of the Robotics, Automation and Artificial Intelligence sectors, it’s still in its very early days. This could be the largest untapped investment opportunity for Canadian investors, particularly since very few likely own these stocks in their equity portfolios.”
Finding issuers that derive significant revenues from robotics and automation requires substantial expertise and knowledge.
It is for this reason Horizons ETFs says it partnered with Robo Global, an investment research and index provider covering the robotics, automation and artificial intelligence industries.
Robo Global launched the original US-domiciled Robo Global Robotics and Automation ETF in August 2013, along with its underlying Index.
Year-to-date, the US version of Robo, which is listed on the Nasdaq stock exchange, claims it has been the fastest-growing ETF in the US.
On January 1, 2017, the US version of Robo had $134.7 million in assets under management.
By October 31, 2017, it had nearly $1.7 billion in AUM.
The global robotics technology market is expected to reach $82.7 billion by 2020, according to Allied Market Research (May 2015).
Travis Biggs, CEO of Robo Global, US, says: “We’re excited to partner with Horizons ETFs to potentially enhance the portfolios of Canadian investors, by giving them an easier way to access the sector of robotics, automation and artificial intelligence.
“We feel Horizons ETFs is an excellent partner, based on their success in bringing innovative ETF solutions to Canadians.”
Horizons Robo has closed its initial offering of units and will begin trading on the TSX when the market opens this morning.