Solactive expands robotics & AI index offering

Feb 22nd, 2018 | By | Category: ETF and Index News

Solactive, a German index provider, has launched the Solactive Industrial Robotics & Automation Index, a thematic index that tracks companies which provide robotics and automation solutions in an industrial context.

Solactive launches another robotics index

Solactive launches another robotics index

The index holds globally listed companies, with a minimum market capitalisation of $1bn, which operate in sectors such as factory automation equipment, semiconductors, industrial machine parts, and programmable logic devices. 

Constituent companies must have positive one-year returns. This means that the index is tilted towards companies whose success is corroborated by their performance over the previous twelve months.

The index is equally weighted and includes 30 constituents. Major constituents include Advanced Micro Devices (3.37%), Intel Corp (3.69%), and Rockwell Automation (3.07%).

To allow for sectoral diversification, each sector is capped at 30% of the index weight

The countries with the highest exposures are the US (52.9%), Japan (19.7%), and Germany (6.7%). The index is calculated as a Net Total Return (NTR) index and is published in US dollar. The composition is readjusted quarterly.

As at 21 February 2018, the year-to-date performance of the index was 3.9% with a maximum drawdown of -11%.

Timo Pfeiffer, Head of Research at Solactive, commented: “The strong demand for robots and automation across all major industries seems to indicate a great market outlook for industrial robotics, with double-digit growth rates in the next couple of years. We are therefore excited to see how major players in this field will perform.”

The International Federation of Robotics has found that robotic density is rising globally in manufacturing industries. According to ABI Research, industrial robotic sales will triple by 2025, reaching an estimated annual revenue of about $45bn.

Solactive already manages several robotics indices, including the ROBO Global Robotics and Automation UCITS Index which was launched in June 2014. It represents the global value chain of robotics, automation and enabling technologies. As at 21 February 2018, its one-year performance was 36.94% and its one-year volatility was 10.89%. Its highest market exposure is to the US (39%), followed by Japan (27%).

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