The robotics and automation industry is currently navigating a significant inflection point. Once characterized by specialized industrial applications, it’s transitioning now to a pervasive industry of industries. The sector currently benefits from both offensive growth and defensive necessity as artificial intelligence integrates with physical systems, Zeno Mercer, head of robotics and AI research at VettaFi, told CNBC during the Exchange conference last week.
Mercer noted that improvements in autonomous systems across various modalities, including aerial and ground-based robotics, are driving growth. This technological convergence is particularly timely given the current geopolitical climate. Modern threats, such as the increasing use of drones in global conflicts, drive demand for modern solutions. This positions robotics as a defensive staple for national security.
A primary example of this momentum is Ondas Holdings Inc. (ONDS). ONDS has spent over a decade consolidating its position through strategic M&A. The firm recently secured a significant partnership with Palantir (PLTR), a move Mercer suggests validates their position within the autonomous systems ecosystem. ONDS represents a specific midcap play. However, the broader trend reflects a robust appetite for physical AI — the application of intelligence to real-world tasks.
Navigating Robotics and AI Opportunities via ETFs
For financial advisors looking to capture this broad-based shift, diversified ETFs offer a streamlined approach to a complex subsector. The ROBO Global Robotics and Automation Index ETF (ROBO ) provides exposure to the global value chain of robotics, offering access to the hardware side of this theme.
Additionally, for those focusing specifically on the intelligence layer, the ROBO Global Artificial Intelligence ETF (THNQ ) targets the infrastructure and software powering these autonomous systems.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for THNQ and ROBO, for which it receives an index licensing fee. However, THNQ and ROBO 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 THNQ and ROBO.
