The growth prospects of the robotics sector are truly impressive.
The global robotics market was valued at $62.75 billion in 2019 and is expected to reach $189.36 billion by 2027, with a compound annual growth rate (CAGR) of 13.5% during the forecast period.
When it comes to analyzing the stock market performance of the robotics sector, many use the Global Robotics and Automation Index as a benchmark.
One of the largest and most popular ETFs in the robotics sector that seeks to track this index is the ROBO Global Robotics and Automation ETF (ROBO).
This ETF provides exposure to a wide range of leading companies in the field of robotics, automation, and related technologies.
With a relatively high expense ratio of 0.95%, ROBO has a net asset value of over $2 billion, making it one of the most favored passive investment tools in thematic investing.
Despite the limited solutions in the robotics market, this fund is quite diversified, investing in approximately 90 stocks.
The top three holdings within the ROBO ETF are Intuitive Surgical Inc.
(ISRG), NVIDIA Corporation (NVDA), and ABB Ltd (ABB), representing focal points in the robotics sector.
These three companies have shown outstanding performance in line with other technology stocks in recent years.
Looking at other stocks among the top 10 holdings of the ETF, there are equally interesting options that, for various reasons, have not yet benefited from the bullish trend seen in the sector.
One such standout is Teradyne (TER), which has yet to surpass its 2021 highs.
However, the company exceeded analysts’ expectations in the first quarter of 2024, with a revenue of $600 million.
Furthermore, Teradyne provided positive guidance for the second quarter of 2024, with an expected maximum earnings per share of $0.65.
Despite its robust performance, Teradyne is often overlooked compared to giants like NVIDIA and Intuitive Surgical.
The information and considerations contained in this article should not be used as the sole or primary basis for making investment decisions.
The reader retains full freedom in their investment choices and full responsibility for executing them, as only they know their risk tolerance and time horizon.
The information contained in the article is provided for informational purposes only, and its disclosure does not constitute, nor is it to be considered, an offer or solicitation to the public for savings.
For more insights, you can also read about the 13% drop in Nvidia shares over three days.
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