These Robotics ETFs Offer Diversified or Concentrated Holdings

If you take a look at these two funds just from a high level, they look pretty similar. Their compositions are fairly similar. A lot of it, as you'd expect, is industrials and tech stocks. Both of them have a fairly heavy international exposure, so these are true global funds. Bots is a little more large cap tilted, but for the most part, if you just look at a high level from a sector or regional perspective, you'd think they look pretty different.

As Shaya mentioned, they've got some fairly different ways of constructing the portfolio, and you can see that in the portfolio overlap. It's relatively low, even though the high-level composition of the fund looks similar. So the big differentiator, if you're looking at the numbers here, is that Bots has about 60% of its portfolio in the top 10 holdings. Nvidia is the top holding at about 10%. Robo only has about 17% in its top 10 holdings.

With Bots, you get a little more idiosyncratic risk in there. You get the robotics and AI theme, but you're a little more reliant on a smaller number of companies for success. Robo, because it's a little more spread out and, like Shaina said, has that scored weighting methodology, you get your individual holdings spread out across a far larger number of names.

So, it really comes down to whether you want concentrated or diversified. I personally prefer diversified. I think that's the way to go, especially in these thematic funds. So, for me, in this category, Robo is the winner.