The current environment may present a compelling opportunity for investors seeking to increase their allocation to the automation industry via a highly-efficient ETF.
Fears around tariffs weighed heavily on automation stocks in April. While the sector has rebounded tremendously in the past month as of May 9, 2025, the Fidelity Disruptive Automation ETF (FBOT ) is still off recent highs seen in February 2025. The depressed valuations within the automation sector have unveiled a potentially advantageous entry point for long-term investors.
Automation refers to the use of technology to perform tasks, effectively reducing human involvement. Driven by advancements in robotics, artificial intelligence, and machine learning, automation is an important driver of efficiency gains and productivity improvements across various industries.
Global emphasis on sovereign industrial security is predicted to rapidly increase the demand for automation solutions. This trend, coupled with a likely rise in onshoring, could drive significant growth in the automation sector.
Companies involved in industrial automation, software for automated processes, and related enabling technologies stand to benefit from this ongoing transformation.
The long-term potential of automation to reshape industries coupled with currently depressed valuations makes FBOT worthy of consideration. An allocation to the automation industry could potentially provide portfolio diversification and growth potential.
Under the Hood of Fidelity’s Disruptive Automation ETF
FBOT invests in, but isn’t limited to, companies manufacturing and designing automation. It also invests in companies that enable processes, technology, or tools related to artificial intelligence and robotics. Also included are companies involved in machine vision, pneumatic systems, process sensors, autonomous driving, and 3D printing. Importantly, FBOT invests across sectors.
The Fidelity ETF’s top holdings as of April 30 include Taiwan Semiconductor Manufacturing, PTC, NVIDIA, Shenzen Inovance Technology, Siemens, Deer & Co, Recruit Holdings, Daifuku, and Uber Technologies.
The fund charges 50 basis points and has $97 million in assets under management as of May 9.
For more news, information, and analysis, visit the ETF Investing Channel.
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