Robo-Stox Global Robotics and Automation Index ETF
Principal Exchange: NASDAQ
INDEX UNIVERSE?Exchange Traded Concepts (ETC), the Okla.-based firm that helps other companies bring their ETF ideas to market, tomorrow is launching a fund targeting the growing global robotics industry that will have its primary listing on the NASDAQ under the catchy symbol ?ROBO.?
The Robo-Stox Global Robotics and Automation Index ETF (ROBO) is a global tactical play on the robotics and automation industry, and will based on the Robo-Stox Global Robotics and Automation Index, according to recent regulatory paperwork detailing the fund. It will have an annual expense ratio of 0.95 percent, or $95 for each $10,000 invested.
The 77-constituent index holds companies whose main businesses are the technologies, services or devices that contribute to any type of robot, robotic action or automation system in realms including health care, manufacturing and military applications. It even has a few names in the rapidly expanding world of 3D printing.
ROBO is vaguely comparable to the $12.4 B Technology Select Sector SPDR Fund (XLK | A-81) and the $569M iShares Global Tech ETF (IXN | B-86). Still, the comparison is limited, as ROBO is the first ETF of its kind to focus so tightly on robotics and automation.
ROBO will hold companies with market values that are greater than $200M. About 40 percent of the portfolio will be global companies.
The constituents will be a 40/60 balance between ?bellwether? and ?non-bellwether? stocks, with bellwether stocks being those that the index provider deems indicative of overall performance within the robotics and automation sector, and non-bellwether stocks representing stocks that the index provider believes will drive revenue due to a specialized or unique contribution to the sector.
Also, at the discretion of ETC, the fund?s advisor, ROBO may invest 20 percent in nonrobotic or automation-related constituents, such as cash or money market funds.
Index Management Solutions will act as sub-advisor.
The index was created by Dallas-based Robo-Stox, and the index will be calculated by S&P.