Exchange Traded Concepts is planning to launch an exchange-traded fund focused on the growing global robotics and automation industry, according to paperwork filed with the US Securities and Exchange Commission (SEC).
According to the regulatory filing, the Robo-Stox Global Robotics and Automation Index ETF (ROBO) will invest in companies that “derive a significant portion of revenues and profits from robotics-related and/or automation-related products and/or services”.
Under normal circumstances, the fund will invest at least 80 per cent of its net assets, plus the amount of any borrowings for investment purposes, in securities of robotics and automation companies.
The fund may invest up to 20 per cent of its assets in investments that are not included in its underlying index – the Robo-Stox Global Robotics and Automation Index – but which the adviser believes will help the fund track the index. Such investments include cash and cash equivalents, including money market funds.
