Solactive introduces the Solactive Industrial Robotics & Automation Index, a thematic index tracking companies providing robotics and automation solutions in an industrial context……
Timo Pfeiffer, Head of Research at Solactive
The index holds globally listed companies with a minimum market capitalization of USD 1 billion operating in sectors such as factory automation equipment, semiconductors, industrial machine parts, and programmable logic devices. The index rules only select companies with positive one-year return. In this way, the composition is tilted towards companies whose success in these areas is corroborated by their stock’s performance over the previous twelve months.
The Solactive Industrial Robotics & Automation Index offers investors the opportunity to capitalize on the digitization trends affecting world economies, with a specific focus on the ongoing changes in the manufacturing and industrial sectors. The International Federation of Robotics has found that robotic density is rising globally in manufacturing industries1. According to ABI Research, industrial robotic sales will triple by 2025, reaching an estimated annual revenue of about USD 45 billion (2).
Timo Pfeiffer, Head of Research at Solactive, commented: “Companies included in the Solactive Industrial Robotics & Automation Index play a crucial role in the transition to Industry 4.0. 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.”
Jorge Masalles, Head of Institutional and Private Bank Sales at Commerzbank, said: “Robotics is an area of the equity market which many of our clients have shown an interest in and would like to gain exposure to. Commerzbank’s structuring expertise provides clients with a customised exposure to the index. For example, providing volatility targeted versions of the index which are suitable for capital protected products.”
The Solactive Industrial Robotics & Automation Index is equally-weighted and includes 30 constituents.
Examples of components include Advanced Micro Devices, Intel Corp, and Rockwell Automation. To allow for sectoral diversification, each sector is allowed to account for a maximum of 30% of the index weight. The most represented countries are the U.S., Japan, and Germany. The Index is calculated as a Net Total Return (NTR) index and is published in USD. The composition is readjusted quarterly.
1 International Federation of Robotics (2018). Robot Density Rises globally
2 ABI Research (2017). Industrial Robot Revenue Will Nearly Triple by 2025, Fueled by Chinese Demand