Robots and artificial intelligence (AI) are increasingly gaining precedence in our daily life. The pandemic-driven stay-at-home trend made it more important as we have become more dependent on the technology. The growing accessibility and falling costs are also making the space more demanding and lucrative. The global robotics technology market size was valued at $62.75 billion in 2019, and is projected to reach $189.36 billion by 2027, at a CAGR of 13.5%, per Allied Market Research. No wonder, AI-related investing tools like Global X Artificial Intelligence & Technology ETF (AIQ Quick QuoteAIQ - Free Report), ROBO Global Robotics & Automation ETF (ROBO Quick QuoteROBO - Free Report), iShares Robotics and Artificial (IRBO Quick QuoteIRBO - Free Report) and First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT Quick QuoteROBT - Free Report) are hot bets now.

Robots and artificial intelligence (AI) are increasingly gaining precedence in our daily life. The pandemic-driven stay-at-home trend made it more important as we have become more dependent on the technology. The growing accessibility and falling costs are also making the space more demanding and lucrative. The global robotics technology market size was valued at $62.75 billion in 2019, and is projected to reach $189.36 billion by 2027, at a CAGR of 13.5%, per Allied Market Research. No wonder, AI-related investing tools like Global X Artificial Intelligence & Technology ETF AIQ, ROBO Global Robotics & Automation ETF ROBO, iShares Robotics and Artificial IRBO and First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT are hot bets now.

Visit our ETF Hub for investor news and education, market updates and analysis and easy-to-use tools to help you select the right ETFs. Robotics-focused exchange traded funds have seen "massive" outflows in recent weeks as one of the hottest trends of the past six months threatens to implode. The sharp reversal is starkest in Europe, where robotics and automation-themed ETFs chalked up inflows of $753m between September 2020 and February, according to data from Global X, a New York-based ETF manager. However, a record $506m of this money was pulled out of the market in March alone, cutting assets 8.5 per cent to $5.4bn. The US robotics segment also witnessed "significant" outflows of $363m, pulling sector-wide ETF assets down 6.1 per cent to $8.9bn, according to Global X.

Thematic funds are slowly claiming their dominance in the investment world. Notably, the collective assets under management in these funds have risen nearly three times to roughly $195 billion globally from $75 billion, over a period of three years, ending Dec 31, 2019 (per a Morningstar report). Moreover, the figure is equivalent to around 1% of total global equity-fund assets, rising from the 10-year ago level of 0.1%. Also, the options available for thematic investing have increased over time. By the end of December 2019, around 923 thematic funds were available for investing in the market (per a Morningstar's global database), with 154 new thematic funds being added globally in 2019. North America has witnessed thematic assets tripling to $30.5 billion during the trailing three-year period through Dec 31, 2019 on the back of solid net inflows.

ETF Securities Australia has launched an exchange-traded product on the ASX that provides access to global robotics, artificial intelligence and automation stocks. The ETF Securities ROBO Global Robotics and Automation ETF (ROBO), which tracks the ROBO Global Robotics and Automation Index, began trading on the ASX yesterday. According to a statement by ETF Securities, the robotics economy is estimated to be worth US$1.2 trillion by 2025, driven by demand for higher productivity and applications in various industries. Commenting on the launch of the ETF, head of ETF Securities Australia Kris Walesby said, "The robotics and automation industries are part of a global megatrend which is expected to outperform the broader market in coming decades. "ROBO Global is the pioneer in this area, having created the first robotics and automation ETF on the NASDAQ in 2013, and continues to work with a strategic advisory team including leading robotics experts.

A new 300-page research report from Bank of America Merrill Lynch, Robot Revolution – Global Robot & AI Primer, and to a lesser extent BSG's report: Man and Machine in Industry 4.0, make for interesting reading and highlight the role of AI and the changing nature of jobs and work in the exponential growth of the robotics industry. "We are facing a paradigm shift which will change the way we live and work," the authors of the BoA ML report said. "The pace of disruptive technological innovation has gone from linear to parabolic in recent years. Penetration of robots and artificial intelligence has hit every industry sector, and has become an integral part of our daily lives." BoA ML report projects that the total global market for robots and artificial intelligence will reach 152.7 billion by 2020, and estimates that the adoption of these technologies could improve productivity by 30% in some industries.