2 ETFs to Invest in The Robotics Revolution

These funds are interesting. They are both based on indices, and I'll save this for my wildcard category, but to me, these are indexes that were created for these funds. Bots is really focused on the development and production, whereas Robo is more about the transformative aspects of robotics and AI. So they're both giving you exposure to robotics and AI, but in very different ways.

They generally have similar constraints and guidelines in terms of whether or not a stock could be included are relatively similar. Market cap minimums are $200 million for Robo and $300 million for Bots. There are market cap and concentration limits and maximum size. They both have some information in here regarding IPOs and how they take into consideration that these tend to be IPO-heavy industries, and how do they bring IPOs into the mix.

I will point out that Robo has some ESG screens that they include, which I think is really interesting, and uses scores rather than other ways to market cap weight. Instead of using pure play market cap, Robo does a score, and then it's weighted by the score. So it's the score divided by the sum of all the scores is how they wait. So it's not market cap per se, but there is a market cap element to it. The primary way is based on the score and pure play to the philosophy of the product.

I think they're both really interesting. I do have a preference for Bots. I do like that it's more in the production of the input. I'm sort of on the record that I like those types of names in environments. They tend to have less volatility and so on and so forth.

I will point out that Robo does have a volatility flag of 18%. There's an 18% target ball score, which I do find interesting. But ultimately, I think Bots is a little more sustainable over a full market cycle because it's more of the inputs and less driven by consumer demand. So to me, Bots is the winner.