Investing in AI represents one of, if not the, key themes for tech investing in the years to come. It has already made a huge contribution for investor portfolios this year after a healthy 2024. Investors and market watchers may want to know where to look next. While humanoid robots tend to garner attention and captivate imaginations, humanoids are still in early stages. Other robotic forms are likely to gain traction more quickly, as recently explored in a VettaFi webinar.
See more: As AI Becomes Increasingly Physical, Consider THNQ
The webinar, “Mapping the Future of Robotics for Investors: Humanoids in a Multi-Form Factor World,” included thoughts from VettaFi Head of Robotics and AI Research Zeno Mercer. Qualcomm Chancellor’s Chair of Robot Systems, Distinguished Professor of Computer Science University of California, San Diego, Dr. Henrik I. Christensen, also spoke. A replay of the webcast is available on-demand here.
AI and Robotics
The pair discussed the various robotics trends based on forms and the benefits of AI-driven, specialized robotics to work with people. Attendees, prompted to identify the robotics segment that made them most excited, identified industry specific robots as their most anticipated area at 57%. Additionally, humanoids, autonomous vehicles, and flying cars saw 31%, 23%, and 17% respectively in that audience poll.
How, specifically, can investors look ahead towards robotics? Where might artificial intelligence take the robotics industry in next ten years? On the demand side, Mercer explained, demographics underscore the need for more robotic support for future work. On the supply-side, AI is not only expanding robotic capabilities, but additionally parsing through the administrative and operational side of these companies, providing underappreciated benefits.
In the nearer term, reshoring is already driving the need for robotics in the U.S. Autonomous factories, driven by AI, could see robots work at all hours of the day. Furthermore, homes may see smart appliances as a key frontier of AI-driven robotics, though individuals may not immediately see them that way. Christensen spoke to that ten year outlook with excitement.
“You will start to see lights-out warehouses, where you don’t need people to actually be in the warehouses,” he said of robotics driven by AI. “I think we will get to a point where autonomous driving for logistics on the interstates will be largely driverless.”
Additionally, Christensen said that areas like elder care and even education could see robotics play an important role, especially combined with generative AI capabilities. Robots can offer different form factor benefits with multiple appendages to contribute to the future of work.
Robotics ETFs and Artificial Intelligence
The ROBO Global Artificial Intelligence ETF (THNQ) and the ROBO Global Robotics & Automation Index ETF (ROBO) provide routes into this physical manifestation of artificial intelligence through robotics, together, in the digital and physical forms. THNQ includes global leaders in AI infrastructure and applications. Concurrently, ROBO provides exposure to innovative companies in robotics and automation. There is a ~15% overlap between the two strategies.
The underlying indexes for ROBO and THNQ take a unique research-driven approach. Index construction is advised by world-renowned experts in robotics and AI, including 4 PhDs and 2 winners of the prestigious Engelberger Robotics Award. Christensen won the Engelberger Award in 2011. Advisors help identify emerging industry trends and relevant companies.
Representing the tech stack of a more autonomous physical and digital future, the duo of ROBO and THNQ provides a strong set of options to embrace the marriage of AI and robotics, appealing to investors with their minimal (~15%) portfolio overlap.
For more on robotics, AI, and healthcare, please join our upcoming webcast on October 8 at 11 a.m. ET. Register here.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ROBO and THNQ ETFS, for which it receives an index licensing fee. However, the ROBO THNQ ETFs are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of the ROBO andTHNQ ETF.