Horizons Launches ROBO, the first equity robotics and automation ETF in Canada
We recently met with ROBO Global, the U.S. firm that manages ROBO, the Robotics and Automation Index ETF launched by Horizon on November 29, 2017. Horizons ROBO is the Canadian version of ROBO in the U.S. and is the first equity robotics, automation and artificial intelligence (AI) ETF in Canada. ROBO in the U.S. was also the first of its kind and has been one of the fastest growing ETFs in the world in 2017.
While the focus of the ETF is technology in a broad sense, ROBO will include companies from a wide variety of sectors such as Financials, HealthCare, Industrials, et al. Robotics and AI is a foundational shift in the global economy and it is happening in virtually all industries, markets and geographies. As such, the Index may have exposure to many different industries beyond pure “tech”. The index provides broad diversification and there is very little overlap in holdings with major broad stock indices. According to ROBO Global, less than 2% of the stocks in the Index are held in the MSCI World ACWI index.
The Global Robotics & Automation Index is a global index that includes automation and artificial intelligence companies across 14 countries, in both developed and emerging markets and has large cap as well as mid and small cap companies. ROBO Global has a team of equity specialists as well as industry experts who specialize in robotics, automation and artificial intelligence technology industry trends.
The ROBO Global industry classification system (the Index) currently has 12 sub-sectors which are sorted into two groups; 1) technology that manufactures or provides services that support a robot performing its task, and 2) applications which incorporate robotic and automation technologies into their product and manufacturing process. At present there are 84 companies within the index, and each of the companies are classified as either bellwether, which merits a 2% weight or non-bellwether, which merits a 1% weight.
Key Details of ROBO
Name: Horizons Robotics and Automation Index ETF
Launch Date: November 29, 2017
Ticker: TSX-listed as ROBO
Underlying Index: Global® Robotics and Automation Index
Bloomberg Ticker: ROBOTR
Management Fee: 0.75% (plus applicable sales tax)
Currency Hedged: All USD exposure is currency hedged