An old industry with a new spotlight
Carmakers have used robot arms for decades. What has changed is where robots can go: cheaper sensors and better software have taken them into warehouses, hospitals and smaller factories.
That makes robotics less speculative than it sounds. Many of the companies involved are large, profitable engineering firms.
It follows factory spending
Robots are bought by manufacturers when they are expanding or modernising. When the economy slows, or when car and electronics makers cut their budgets, orders fall quickly.
Expect results that rise and fall with the industrial cycle rather than growing smoothly every year.
Look beyond the US
Japan, Switzerland and Germany are home to several of the largest robot and automation makers. A portfolio limited to US-listed companies misses much of the industry.
Holding them means holding shares priced in yen, francs and euros, so exchange rates will affect your returns.
Humanoids: promising, unproven
Robots shaped like people get the headlines, and several companies are developing them. So far they are prototypes and pilot projects, not products sold in volume.
A company's share price can rise a long way on a demonstration video. Whether a profitable business follows is not yet known.
Where robots are used
Factory robots
Robot arms that weld, paint and assemble.
For example: Fanuc, Yaskawa, Kawasaki Heavy Industries
Automation parts
Sensors, controllers and software that run automated production lines.
For example: Keyence, Rockwell Automation, Siemens
Surgical robots
Machines that help surgeons operate with more precision.
For example: Intuitive Surgical, Stryker
Warehouses and logistics
Automated systems that move and sort goods.
For example: Symbotic, Daifuku
Chips and software
The computing that lets machines see and decide.
For example: Nvidia, Teradyne
Companies are listed to show what each category means. They are not recommendations, and the list is not complete.
Three ways to invest
There is no single right route. Many people combine them, and plenty decide a broad global fund is all they need.
- 1
Buy individual shares
Pick one or more robotics companies and buy their shares through a broker or investing app.
- Good for
- Simple to understand. You own exactly what you chose.
- Watch out for
- If you only hold a few companies, one bad result can do real damage. Picking winners is hard, even for professionals.
- 2
Buy a ready-made fund
A fund (often an ETF) holds dozens of companies in one purchase. Examples include the Global X Robotics & Artificial Intelligence ETF (BOTZ) and ROBO Global Robotics and Automation Index ETF (ROBO) in the US, and the iShares Automation & Robotics UCITS ETF (RBOT) in the UK and Europe.
- Good for
- Instant spread across many companies, with very little effort.
- Watch out for
- You get what the fund provider chose, including companies you may not want. Themed funds usually charge more than broad trackers, so check the yearly fee and the top ten holdings. Which funds you can buy depends on where you live.
- 3
Build your own portfolio
Choose your own mix of companies and how much of each, then buy them through your broker. This is what Arithmos helps with: describe the mix in a sentence and it builds and tests one for you to consider.
- Good for
- You decide exactly what is in and what is out, and you can see the reason for every company.
- Watch out for
- More to look after than a fund. Buying many separate shares can cost more in dealing fees, and a tested result is a simulation, not a promise.
What $100 would have done
To make this concrete, here is a real portfolio from this area that anyone can open on Arithmos, and what $100 put into it would be worth. It is one example, shown as it is, whether it went up or down.
If you’d put $100.00 into this portfolio of 10 companies…
The risks
- Cyclical demand. Orders fall when manufacturers cut spending.
- Hype. Excitement about humanoid robots can push prices well ahead of revenue.
- Competition. Lower-cost makers, particularly in China, are gaining ground.
- Currency. Many leading companies are listed outside the US.
- Loose definitions. Some robotics funds hold companies with only a small connection to robots.
Try it yourself
The quickest way to understand a portfolio is to look at one. Here is how to turn this guide into something you can inspect.
- 1
Start from the idea
The button below opens the builder with this guide's idea already typed in. Change any part of it: the number of companies, the countries, the limit per company.
- 2
Read the reason for every company
You get a list of companies, how much of each, and a plain-English reason for each pick. If one looks wrong to you, you can ask for it to be changed.
- 3
Look at the bad years, not just the good ones
The portfolio is replayed against real past prices. Check the biggest fall along the way, and ask yourself whether you could have sat through it.
- 4
Decide for yourself
If you want to act on it, you buy the shares yourself through your own broker. Arithmos never holds your money or places trades.
“Companies that make robots or the parts inside them: factory robots, surgical robots and warehouse automation. 20 companies worldwide, no single one over 8%.”
Browsing portfolios other people have published is free. See pricing for what building your own includes. A tested result is a simulation using past prices. It is not a forecast and not a recommendation.
Common questions
Are robotics stocks the same as AI stocks?
They overlap. AI is making robots more capable, and some chip companies appear in both. But most robotics companies are industrial businesses that sell machines to factories.
Which countries lead in robotics?
Japan has long been the largest maker of industrial robots, with major companies also in Switzerland, Germany, the US and increasingly China.
Can I invest in humanoid robot companies?
A few listed companies are developing them, usually as a small part of a larger business. Specialist developers are often privately owned and cannot be bought through an ordinary broker.
