It’s important to remember the difference between Index Funds and ETFs. Index funds simply track the performance of an index, but ETFs are more complicated and can involve complicated derivative structures.
Have Vanguard Produced A Robotics ETF?
Unfortunately, Vanguard do not have a robotics ETF, or even an ETF catering to technology stocks. Their products are usually more conservative and cater to bigger markets for diversification. There are certainly other options when investing in passive investments, but you should be extremely careful when choosing them. it always pays to be on the side of caution when investing in anything.
If you find a suitable ETF, take extra care to make sure the product is safe and the company is honest. You could invest in a safe investment product, but it would be extremely dangerous if the company was in a precarious financial position. On the eve of the financial crisis, there were probably many people with shares in Lehman Brothers investment products which weren’t dangerous. That didn’t stop them getting severely burnt.
It pays to research your ETFs, because they can be dangerous. Even the founder of index funds says they should be approached with caution:
Robotics Investments 2018
With the disclaimer out of the way, there are a few robotics investments one can make in 2018.
iShares Automation & Robotics UCITS ETF
This ETF invest in physical securities that match the performance of the iSTOXX Fact Set Automation & Robotics Index. It gives exposure to companies producing robotics-related goods and services in emerging economies…
Expense ratio: .40%
Benchmark: iSTOXX® FactSet Automation & Robotics Index
Performance: the fund is only a year old, however it has already outperformed the S&P by roughly 20%…
Polar Capital Investment Trust
Another option is Polar Capital’s Automation & Artificial Intelligence Fund.
The fund aims to outperform the benchmark MSCI ACWI Net TR Index, an MSCI index made of popular, large cap companies.
One would wonder why Polar Capital aren’t being measured against an index focused soley on robotics, something which seems or simply is dishonest.
Expense Ratio: .80%
Performance Fee: 10%
It is unclear how much assets are under management, but I would imagine it is substantial as the demand for AI-focused equities is huge.
The performance of the fund is not clear so far, however judging by the performance of Polar’s previous offering, focused solely on Tech, investors could be on to a winner…