The Analyst: investing in robotics and the funds to own
With automation certain to become increasingly important in the decades to come, analyst Dzmitry Lipski describes the outlook and the best way to gain exposure to the theme.
23rd July 2026 13:40
by Dzmitry Lipski from interactive investor
Robot waiter delivering drinks to a restaurant table. Credit: Larisa Stefanuyk/iStock.
Robotics is often viewed as a futuristic investment theme, but the devil is in the detail. For long-term investors, the broader automation ecosystem offers a more diversified and potentially more attractive opportunity than robot manufacturers like Fanuc or ABB Ltd (SIX:ABBN).
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The best investments could be businesses that supply the essential components such as AI chips, industrial sensors, precision gearboxes, machine vision systems and automation software. They often enjoy stronger competitive advantages and higher profitability than the robot firms.
Another underappreciated driver is demographics rather than technology. While advances in AI attract the headlines, the more powerful long-term force is a global shortage of workers. Ageing populations and rising labour costs, especially in countries like Japan, Germany, South Korea and China, are accelerating demand for automation, making robotics an economic necessity rather than simply a technological innovation.
Investors should also look beyond the headlines around humanoid robots. Professional investors are focusing on opportunities in less glamorous areas such as warehouse automation, logistics, semiconductor manufacturing, healthcare and factory automation, where robots are already delivering measurable productivity gains.
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As such, the most important consideration is that robotics is evolving into a form of economic infrastructure. Just as electricity and the internet transformed every industry, automation is becoming embedded across industries. This means many of tomorrow’s winners are more likely to be businesses that successfully deploy automation to improve efficiency and reduce costs.
For this reason, the strongest investment opportunities may lie in the broader automation ecosystem. Many leading semiconductor, industrial technology and AI companies are major beneficiaries of the robotics revolution and can often provide more diversified exposure than specialist robotics funds.
Stock ideas
For investors with a higher tolerance for risk, individual stocks can provide more targeted exposure to the robotics and automation theme.
NVIDIA Corp (NASDAQ:NVDA)is the leader in AI chips that power next-generation robots, while Japan’s Keyence dominates industrial sensors and machine vision systems used in smart factories.
Teradyne Inc (NASDAQ:TER), through its Universal Robots business, is the global leader in collaborative robots or “cobots”, and Rockwell Automation Inc (NYSE:ROK) provides the software and control systems underpinning modern manufacturing.
In healthcare, Intuitive Surgical Inc (NASDAQ:ISRG) remains the market leader in robotic surgery.
Together, these companies represent the key building blocks of the robotics ecosystem and feature prominently in many leading robotics funds.
Fund ideas
iShares Automation&Robotics ETF USD Acc GBP (LSE:RBTX)offers broad, low-cost exposure to around 150 global companies involved in industrial automation, robotics, AI infrastructure and enabling technologies, making it an excellent way to capture the long-term automation trend. The ongoing charge is 0.40%.
Pictet - RoboticsI GBP (BDB6DB9)fund is the strong active option in this space. Its experienced management team invests across the full robotics ecosystem: semiconductors, healthcare, factory automation and software, plus it has the flexibility to identify emerging winners before they become part of market indices. The ongoing charge is 1.09%.
| Total returns year to date (%) | One year (%) | Three years (%) | Five years (%) | |
| iShares Automation & Robotics ETF | 37 | 49.6 | 20.7 | 11.8 |
| Pictet - Robotics | 17.2 | 38.2 | 22.8 | 13.5 |
| MSCI World NR USD | 11.2 | 25.3 | 17.5 | 12.4 |
Notes: Data as of 30 June 2026. Source: Morningstar Direct. Past performance is not a guide to future performance.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
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