BOTZ vs. ROBO: Two ETFs Bet Big on AI and Robotics Growth
Two major exchange-traded funds (ETFs) are offering investors different ways to tap into the fast-growing robotics and artificial intelligence sectors. The BOTZ ETF focuses on companies that earn significant revenue from these fields, while the ROBO ETF takes a broader approach. Both funds aim to capitalise on a market expected to surge from $108.43 billion in 2026 to $416.26 billion by 2035.
The BOTZ ETF provides concentrated exposure to robotics and AI, with top holdings including Nvidia Corp. (NVDA) at 10.89% and Fanuc Corp. (FANUY) at 9.13%. Nvidia supplies advanced chips critical for AI and robotics, while Fanuc specialises in industrial robots and precision machinery. This fund suits investors seeking larger stakes in companies deeply involved in these technologies.
The ROBO ETF, on the other hand, spreads its investments more widely. Its biggest holding, Novanta Inc. (NOVT), makes up 1.94% of the portfolio, supplying equipment for robot-assisted surgeries and industrial applications. Ondas Inc. (ONDS), at 1.78%, provides private wireless networks and robotic platforms for defence and smart cities. While ROBO includes firms like Tesla, NVIDIA, and Infineon Technologies, its broader focus means companies may generate less revenue from robotics and AI than those in BOTZ.
Neither fund relies solely on one sector. BOTZ offers a more targeted approach, while ROBO diversifies across multiple industries. Both, however, position investors to benefit from the long-term expansion of robotics and automation.
The choice between BOTZ and ROBO depends on investor preference. BOTZ delivers a concentrated bet on robotics and AI, with larger holdings in key players. ROBO spreads risk more evenly, appealing to those who favour broader diversification. Each fund aligns with the projected growth of a market set to more than triple in value by 2035.
