The market, as any seasoned goblin will tell you, is a fickle beast. It demands tribute, occasionally bestows fortune, and has a distressing habit of changing the rules mid-game. But even a goblin can see that things with gears and wires are becoming rather popular. Exchange Traded Funds, or ETFs as the accountants insist on calling them, offer a way to dabble in these trends without the sheer terror of picking a single stock. It’s like betting on the entire forge, rather than hoping Old Man Hemlock’s self-oiling hammer doesn’t explode.
Robotics, it seems, is poised to become rather significant. Precedence Research, a cabal of number-crunchers, values the global technology robotics market at $108.43 billion for 2026, and predicts it will swell to $416.26 billion by 2035. That’s a lot of cogs. Naturally, everyone wants a piece. Today, we’ll be peering under the hoods of two ETFs aiming to capture this mechanical boom: the ROBO Global Robotics & Automation Index ETF (ROBO) and the Global X Robotics & Artificial Intelligence ETF (BOTZ). Consider it a polite inspection, before the automatons start inspecting us.
Dissecting the BOTZ Portfolio
BOTZ, you see, focuses on companies that actually do robotics and Artificial Intelligence, meaning they earn a significant portion of their revenue from the practice. It’s a bit like visiting a wizard who can demonstrably turn lead into gold, rather than one who merely claims to. Let’s start with the big names.
- Nvidia Corp. (NVDA +0.63%): A hefty 10.89% of the BOTZ portfolio.
- Fanuc Corp. (FANUY +0.96%): Clocking in at 9.13%
Nvidia, of course, needs no introduction. They provide the brains – or, more accurately, the silicon – behind much of the current AI frenzy. Their connection to robotics is perhaps less heralded, but no less crucial. They claim their three-computer solution allows robots to “see, learn, perceive their surroundings, and make decisions in real time.”1 Which is all very well, but does it also make a decent cup of tea? That’s the real test of intelligence, you know.
Fanuc, meanwhile, is building the bodies. They produced their millionth robot in 2023. A million!2 That’s a lot of metal arms assembling… well, everything, really. From tablets to smartphones, their ROBOMACHINE unit churns out the components of modern life, while the ROBOT division handles the actual assembly, picking, packing, welding, and tightening of screws. It’s a remarkably efficient system, if you ignore the existential dread of being replaced by a tireless automaton.
Peering into ROBO’s Gears
ROBO also chases the robotics/AI intersection, but with a slightly different approach. They’re willing to invest in companies that might benefit from the robotic revolution, even if robotics isn’t their primary source of income. It’s a bit like investing in the blacksmith who makes the tools for the robot builders. Still profitable, just… less directly involved in the metallic mayhem.
Their top holding is Novanta Inc. (NOVT +1.03%), with a 1.94% weight.
Their second-largest holding is, predictably, Fanuc Corp. Since we’ve already dissected Fanuc, let’s move on to their third-largest, Ondas Inc. (ONDS 7.87%).
Novanta provides equipment to the medical and industrial sectors, with 55% of its revenue stemming from medical applications. Think of them as providing the pickaxes and shovels for robotic surgery, a growing market. UCSF predicts 22% of all surgeries in the US will be robot-assisted by 2025. Novanta provides the lasers, sensors, and motion systems that make it all possible. It’s a shrewd play, capitalizing on the inevitable march of robotic surgeons.
Ondas, meanwhile, specializes in private wireless networks, drones, and robotic platforms. Two acquisitions, Roboteam and Apeiro Motion, have expanded their robotics offerings into reconnaissance, bomb disposal, logistics, and other services for the defense sector. They also utilize AI to analyze drone imagery for applications in oil & gas, railways, construction, and smart cities. It’s a bit unsettling, really, the thought of AI-powered drones watching our every move, but progress rarely asks for permission.
The Robotic Verdict
So, which ETF is the better fit for your portfolio? Both have their merits, but they cater to different sensibilities.
BOTZ is ideal for investors who prefer a concentrated portfolio and are comfortable with a smaller number of larger holdings. Its top 10 holdings account for 58.34% of its total assets. When those stocks perform well, BOTZ will soar. However, that concentration also increases risk. A downturn in a few key holdings could significantly impact the ETF’s performance.
ROBO, on the other hand, offers broader diversification and less exposure to any single company. Its top holding, Novanta, accounts for only 1.94% of its total portfolio. This mitigates the risk of over-concentration, but also means that individual companies are less likely to drive significant returns.
If either of these ETFs aligns with your investment strategy, you’re positioning yourself to participate in the long-term growth potential of the robotics industry. Just remember, even the most sophisticated robots still require a human to occasionally oil the gears.
1
And presumably, a hefty warranty. Robots, like dragons, are notoriously unreliable when provoked.
2
One can only imagine the celebratory gathering of robots that ensued. Probably involved a lot of synchronized arm movements.
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2026-01-30 00:53