“Thanks very much for your comments on robots today. I would like to invest in a fund that is specialising in investing in companies that produce robots. Are you aware of or does anybody in the collective know any such funds? As always thanks very much for such a wonderful service. Best rgds”

David Fuller's view

Thanks for your kind words and a very interesting question. 

There is an exchange traded fund – Robo-STOX Robotics and Automation Index ETF (ROBO US Equity).  It US Dollar denominated and also has listings in other countries, including the UK, but volume is negligible outside of the US, where most of the shares are listed.  This appears to have been listed in October 2013, and the performance is virtually unchanged from that date.  ROBO’s capitalisation is currently only just over $28m.  It is not exactly what you want, judging from this Bloomberg comment:

“The ETF seeks to track the performance of the Stox Global Robotics & Automation Index.  The ETF weights the holdings using a multi factor methodology that primarily holds US based information technology and industrial companies.”

In the US there is also iRobot Corporation (IRBT US) which does not appear to be in the Robo ETF above, or at least not in its top ten holdings.  Here is Bloomberg’s description which starts with a somewhat comical first sentence:

“iRobot Corporation manufacturers robots that vacuum and wash floors, and perform battlefield reconnaissance and bomb disposal.  The Company markets its products to consumers through retailers, and to the United States military and other government agencies worldwide.” 

iRobot sells at and estimated p/e of 21.5 and does not pay a dividend.  Consequently, I would prefer Fanuc Ltd. (6954 JP), which I have mentioned several times over the last two decades or more.  This Japanese company has been around since at least the 1970s, and broke up out of a massive base in 2013, helped by the weaker yen.  Fanuc Corporation sells at an estimated p/e of 21 and yields 1.15%.  Here is Bloomberg’s description:

“Fanuc Corporation manufactures factory automation (FA) systems and equipments, and robots.  The Company’s products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill Fanuc participates in a joint venture with General Electric in the FA field.”

We are certain to hear a great deal more about robotics in the years ahead and this service will remain very interested, and welcome any good articles, reports or other feedback which can be shared with the Collective of Subscribers.