Key takeaways:

• The Global X ROBO Global Robotics & Automation ETF is significantly more diversified than the BetaShares Global Robotics and Artificial Intelligence ETF, even though the two share a number of common holdings 

• Although ROBO charges a higher management fee, it has outperformed RBTZ since inception and on a three-year basis, but not across the most recent 12-month period

Last time around, we focused on three yield-focused funds in the Vanguard Australian Shares High Yield ETF (ASX: VHY), SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI), and the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD).

This month our attention shifts to a popular investment theme - artificial intelligence (AI) and robotics. According to Mordor Intelligence, the global robotics market was valued at more than US$23 billion in 2020, with forecasts suggesting it could reach US$74 billion by 2026.

There are two ASX-listed ETFs catering to AI and robotics, so without further ado, let take a look at the ins and outs of the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and the Global X ROBO Global Robotics & Automation ETF (ASX: ROBO).

Fund Objective

BetaShares' Global Robotics and Artificial Intelligence ETF aims to track the performance of an index, before fees and expenses, that includes global companies involved in the production or use of robotics and AI products and services.

RBTZ invests in disruptive innovation relating to the adoption and utilisation of robotics and AI, offering exposure to a technological megatrend that stands to be transformational for multiple industries.

On the other hand, the Global X ROBO Global Robotics & Automation ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ROBO Global Robotics and Automation Index.

More specifically, ROBO focus is companies that potentially stand to benefit from increased adoption and utilisation of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.

Fund Profiles and Holdings

The BetaShares Global Robotics and Artificial Intelligence ETF was admitted to the ASX in September 2018, and since then the fund has grown to approximately $193.1 million in size.

Making its ASX debut a full year earlier, the Global X ROBO Global Robotics & Automation ETF oversees approximately $237.8 million in funds under management (FUM).

Based on recent ASX data covering all broker participants, BetaShares' RBTZ saw its funds under management grow by nearly three times that of the Global X ROBO ETF last month. Funds under management for RBTZ grew by $24.4 million, including $2.6 million in funds inflow across the course of the month. In contrast, FUM for ROBO increased by just $9.2 million, with the fund recording a net outflow of $3 million in funds throughout May.

Trading was more prolific in BetaShares' RBTZ fund, with a total of 2,776 trades across all market participants last month. That was more than double the 1,131 trades involving the ROBO ETF.

When it comes to major holdings, there is surprisingly a large degree of separation between the RBTZ and ROBO ETFs. While the pair feature common names leading the AI revolution like semiconductor stock Nvidia (NASDAQ: NVDA) and robotic-assisted surgery manufacturer Intuitive Surgical (NASDAQ: ISRG), there is a significantly higher level of diversification in the ROBO ETF.

At the time of writing there are 79 separate securities that make up the Global X ROBO Global Robotics & Automation ETF, including companies from the likes of the US, Europe, and Asia. The top 10 holdings account for 18.34% of the fund.

Meanwhile, the BetaShares Global Robotics and Artificial Intelligence ETF features 43 different holdings across the same regions. The top 10 within this ETF represent 64.9% of assets held within the fund.

RBTZ^

ROBO*

1Nvidia

11.7%

Intuitive Surgical

2.2%

2Intuitive Surgical

9.1%

Nvidia

2.1%

3ABB

7.7%

Symbotic

1.9%

4Keyence

7.7%

ServiceNow

1.9%

5Fanuc

7%

Cognex

1.8%

6Dynatrace

4.6%

Kardex

1.8%

7Omron

4.4%

Keyence

1.7%

8Yaskawa Electric

4.4%

Stratasys

1.7%

9SMC

4.2%

Samsara

1.7%

10Cognex

4.1%

Daifuku

1.7%

^ = as at Jun 13, 2023; * = as at Jun 14, 2023

There are only modest differences as far as sector weightings across both funds, which suggests the two ETFs offer broadly similar exposure to industries at the centre of AI and robotics disruption.

RBTZ

ROBO

Technology

48.56%

43.81%

Industrials

34.69%

40.91%

Healthcare

14.9%

12.82%

Financial Services

0.99%

0.0%

Energy

0.43%

0.0%

Consumer Cyclical

0.43%

1.58%

Consumer Defensive

0.0%

0.88%

Basic Materials

0.0%

0.0%

Communication Services

0.0%

0.0%

Real Estate

0.0%

0.0%

Performance and Distributions

Since inception, the BetaShares Global Robotics and Artificial Intelligence ETF has yielded an average return of 7.64% per annum. Performance is markedly higher over the last year, with the fund returning 27.4% over that time. On a three-year basis, the average return is 6.98% per annum.

Returns are after fund management costs, and they assume reinvestment of any distributions and do not take into account tax paid as an investor in the fund.

By way of comparison, the Global X ROBO Global Robotics & Automation ETF has delivered a total return of 10.88% per annum since inception, which takes into account fees, reinvestment of distributions, and the like. The fund one-year and three-year returns are 20.5% and 10.06% per annum respectively.

As always, do keep in mind that past performance is not indicative of future performance. These results do not provide any guarantee that future returns will be of the same magnitude, or that returns will be positive.

Unlike other ETFs, both RBTZ and ROBO pay annual distributions to unitholders. In other words, they only pay one distribution per year. The amount and timing of distributions will vary from period to period, and there may even be periods where no distributions are made.

Fees

In terms of headline costs, RBTZ attracts a management fee and cost of 0.57% of the fund Net Asset Value (NAV) per annum. This consists of a management fee of 0.47%, and recoverable expenses estimated at 0.1% per annum of the fund NAV. Indirect costs are estimated at 0.0%, while transaction costs are estimated at 0.01% per annum of the fund NAV.

For the Global X ROBO Global Robotics & Automation ETF, management fees and costs, which includes indirect costs, are 0.69% per annum of the NAV of the fund. Transaction costs are estimated to be 0.03% per annum of the NAV of the fund.

There may be other fees that apply, including buy/sell spreads. Please refer to the relevant Product Disclosure Statements for up-to-date details on costs and expenses, which may be deducted from the fund assets as and when they are incurred. 

Summary

While neither RBTZ or ROBO are dedicated exclusively to AI, the duo both offer exposure to this theme, as well as the broader robotics segment. The Global X ROBO Global Robotics & Automation ETF is larger than its peer, although it has also been admitted to the ASX for a whole year longer than the BetaShares Global Robotics and Artificial Intelligence ETF.

ROBO features nearly twice as many securities than RBTZ, and with the top 10 holdings accounting for just 18.34% of the fund assets, ROBO is far more diversified than the BetaShares product where the top 10 represent nearly two-thirds of all assets. Despite higher management costs, ROBO has outperformed RBTZ since inception, although this trend reversed across the last 12 months. Both funds pay distributions on an annual basis.

RBTZ

ROBO

Tracking

Indxx Global Robotics & Artificial Intelligence Thematic Index

ROBO Global Robotics and Automation Index

Net Assets

$193.1 million

$237.8 million

Top 10 Holdings (weight)

64.9%

18.34%

Performance since inception (p.a.)

7.64%

10.88%

Distributions

Annually

Annually

Management Fees (p.a.)

0.57%

0.69%

For more information, you can read about the BetaShares Global Robotics and Artificial Intelligence ETF here, and the Global X ROBO Global Robotics & Automation ETF here. Before investing in any ETFs, you should consult the respective Product Disclosure Statement, which will be available on the fund website.SelfWealth Ltd ABN 52 154 324 428 (Selfwealth) (AFSL 421789). The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser and/or accountant. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice.