Lyxor launches robotics ETF

Lyxor launches robotics ETF

Lyxor has launched a robotics and artificial intelligence ETF.

The ETF holds 150 stocks, consisting of all cap ranges, selected from 210 companies based on their combined ranking for research and development expenditures/net sales, return on invested capital and three-year sales growth.

Lyxor said its ETF is more diverse than other robotic and AI products in Europe, holding 50 to 70 per cent more stocks.

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Robotics ETFs have attracted €1bn in investment this year, increasing their assets to €3.7bn, this surge in investment comes as robotics and artificial intelligence become increasingly established in industry, Lyxor said. 

Lyxor said this approach means its ETF captures companies that would not appear in a traditional robotics selection, as it can reach beyond the firms involved in the development of robotic and AI to include those that use it in their business, the company said.

Chanchal Samadder, head of equity product development at Lyxor said: "As the market develops, the Robotics and AI industry is likely to change significantly as more players create and adopt the technology. The unique universe captured by our ETF could really help investors stay at the forefront of this dynamic market."

The index, tracked by Lyxor, is built on a classification which uses big data to identify suitable companies to invest in.

This universe of stocks, which is eligible for index inclusion, is defined by Société Générale’s thematic research team and futurist Martin Ford

Patrick Connolly, head of communications at Chase De Vere, said: "This is another example of how using ETFs can give investors access to a wide range of investments. There is little doubt about the future growth potential of robotics and AI and some companies will perform incredibly well.

"However, this is a high risk and specialist area and many companies will fall by the wayside as competition and innovations continually evolve. This new index provides some diversification amongst robotics and AI companies, but it will be a huge challenge to identify the future winners and there must be some doubt about whether the index can achieve that on a consistent basis."

The Lyxor Robotics is listed on the London Stock Exchange, Xetra and Borsa Italiana with a total expense ratio of 0.40 per cent.