US Robotics ETFs: Your 2025 Guide to AI & Automation Growth

Introduction to Robotics ETFs for US Investors in 2025

As the United States stands at the forefront of a technological revolution, robotics and artificial intelligence are no longer futuristic concepts-they’re driving real economic transformation. For American investors, tapping into this shift doesn’t require picking individual stocks or funding startups. Instead, Robotics Exchange Traded Funds (ETFs) offer a strategic, diversified way to gain exposure to companies shaping the future of automation, machine learning, and intelligent systems. These funds pool investor capital to target firms involved in robotics design, AI development, industrial automation, and next-gen technologies. By 2025, the U.S. robotics sector is expanding rapidly, powered by innovation, supply chain modernization, and rising demand across manufacturing, healthcare, logistics, and defense. This guide breaks down the most compelling robotics ETF opportunities, key market trends, and essential strategies for U.S. investors aiming to align their portfolios with one of the most dynamic growth sectors of the decade.

The Robotics Revolution: Key Trends Driving Growth in the US Market

The robotics industry in the United States is not a single-sector play but a complex, interconnected ecosystem fueled by converging technologies and macroeconomic forces. Understanding these underlying drivers is critical for investors evaluating long-term opportunities in robotics and AI.

Artificial Intelligence and Machine Learning Integration

AI is the engine behind modern robotics, transforming machines from programmed tools into adaptive, decision-making systems. In the U.S., AI breakthroughs-especially in generative models, computer vision, and natural language processing-are accelerating the capabilities of robots in real-world environments. From warehouse automation to customer service avatars, AI enables robots to interpret data, learn from experience, and operate with minimal human oversight. The U.S. government and private sector continue to invest heavily in AI R&D, reinforcing the nation’s position as a global leader. For investors, this means sustained innovation cycles and growing revenue potential for companies at the intersection of AI and robotics.

Industrial Automation and Smart Manufacturing

Reshoring-bringing manufacturing back to U.S. soil-is no longer just a political talking point. It’s a strategic necessity driven by supply chain fragility and rising labor costs. To remain competitive, American manufacturers are turning to robotics and smart factory technologies. Automated guided vehicles (AGVs), robotic arms, and AI-driven quality control systems are now standard in advanced production facilities. The adoption of Industry 4.0 principles, which integrate IoT, cloud computing, and robotics, is accelerating. According to the Association for Advancing Automation, robot orders in North America hit record highs in recent years, reflecting strong domestic demand. This trend points to durable growth for companies providing industrial automation solutions.

Healthcare and Surgical Robotics

The U.S. healthcare system is undergoing a robotic transformation. Surgical robots like Intuitive Surgical’s da Vinci system have become staples in minimally invasive procedures, offering greater precision, reduced recovery times, and lower complication rates. Beyond surgery, robots are being deployed in hospitals for disinfection, patient transport, and pharmacy automation. With the U.S. population aging rapidly-over 20% expected to be 65 or older by 2030-the need for assistive robotics, elder care support, and automated diagnostics will only grow. Research indicates a significant growth trajectory for healthcare robotics worldwide, with the U.S. leading in both adoption and innovation.

Autonomous Vehicles and Drones

While self-driving cars grab headlines, the real near-term impact of autonomy lies in logistics, delivery, and industrial applications. Companies like Amazon, FedEx, and UPS are testing autonomous delivery drones and ground vehicles to reduce costs and improve last-mile efficiency. In agriculture, drones are used for crop monitoring and precision spraying. In infrastructure, they inspect bridges, power lines, and pipelines. The U.S. Federal Aviation Administration (FAA) continues to expand regulatory frameworks for drone operations, signaling long-term viability. Autonomous forklifts and warehouse robots are already deployed in distribution centers nationwide, making this one of the most commercially viable robotics subsectors.

Emerging Humanoid Robotics and Collaborative Robots (Cobots)

Humanoid robots-machines designed to mimic human form and function-are moving from lab experiments to real-world testing. Companies like Boston Dynamics and Tesla are pushing the boundaries with prototypes capable of navigation, object manipulation, and task execution. Though still early, these systems could eventually serve in customer service, disaster response, and home assistance. More immediately, collaborative robots-or cobots-are gaining traction. Unlike traditional industrial robots that operate in cages, cobots work safely alongside humans, enhancing productivity in small-batch manufacturing, electronics assembly, and food processing. Their ease of programming and deployment makes them ideal for small and mid-sized businesses, broadening the robotics market beyond large enterprises.

Best Robotics ETFs for US Investors: Top Picks for 2025

With multiple robotics-focused ETFs available, choosing the right one depends on your investment goals, risk tolerance, and desired exposure. These funds vary in strategy, holdings, and cost structure. Below is a detailed look at the leading options for U.S. investors in 2025, including performance outlooks and strategic advantages.

How to Evaluate Robotics ETFs: Key Selection Criteria

Before diving into specific funds, consider these critical factors:

• Performance: While past returns don’t guarantee future results, they can indicate how a fund has responded to market conditions.
• Expense Ratio: Lower fees mean more of your returns stay in your pocket. Thematic ETFs often carry higher ratios, so compare carefully.
• Holdings: Review the top and underlying companies. Are they pure-play robotics firms, or do they have tangential exposure?
• Liquidity: High trading volume ensures you can enter and exit positions without slippage.
• Strategy: Does the ETF focus narrowly on robotics, or is it part of a broader AI and automation theme?

VanEck Robotics and Artificial Intelligence ETF (ROBO)

One of the original robotics ETFs, ROBO has built a reputation for broad, global exposure to the robotics and AI ecosystem. The fund uses a modified market-cap weighting approach, balancing large, established companies with smaller innovators. Its portfolio spans industrial automation, autonomous systems, and AI-driven services.

• Key Holdings (Illustrative for 2025): Intuitive Surgical Inc., NVIDIA Corp., Rockwell Automation Inc.
• Expense Ratio: 0.69% (hypothetical for 2025)
• 1-Yr Performance (Hypothetical for 2025): +18.5%
• Pros: Diversified across subsectors and geographies; strong track record; accessible to retail investors.
• Cons: Higher expense ratio; some holdings have only partial robotics exposure.

Global X Robotics & Artificial Intelligence ETF (BOTZ)

BOTZ is known for its concentrated, high-conviction approach. It targets companies deriving at least 50% of their revenue from robotics, AI, or automation, resulting in a more focused portfolio. This makes it a favorite during bullish tech cycles but also more volatile during downturns.

• Key Holdings (Illustrative for 2025): NVIDIA Corp., UiPath Inc., ABB Ltd.
• Expense Ratio: 0.68% (hypothetical for 2025)
• 1-Yr Performance (Hypothetical for 2025): +22.1%
• Pros: Pure-play exposure; strong historical performance; high allocation to leaders like NVIDIA.
• Cons: Higher concentration risk; limited diversification; more sensitive to sector-specific shocks.

iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)

IRBO takes a multi-sector, market-cap-diverse approach, including exposure to small and mid-cap innovators alongside large-cap leaders. It’s designed to capture long-term growth across AI software, automation hardware, and enabling technologies like semiconductors and cybersecurity.

• Key Holdings (Illustrative for 2025): Keysight Technologies Inc., CrowdStrike Holdings Inc., Fanuc Corp.
• Expense Ratio: 0.47% (hypothetical for 2025)
• 1-Yr Performance (Hypothetical for 2025): +16.8%
• Pros: Lower expense ratio; broader diversification; exposure to emerging innovators.
• Cons: Less concentrated in top performers; some holdings may have indirect robotics exposure.

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

ROBT tracks an index of companies selected for their relevance to AI and robotics innovation. The fund emphasizes companies involved in machine learning, computer vision, and intelligent automation systems. Its holdings often overlap with broader tech ETFs but maintain a thematic focus on next-gen capabilities.

• Key Holdings (Illustrative for 2025): Ambarella Inc., Micron Technology Inc., Siemens AG
• Expense Ratio: 0.65% (hypothetical for 2025)
• 1-Yr Performance (Hypothetical for 2025): +19.3%
• Pros: Strong link to AI innovation; transparent index methodology; solid performance.
• Cons: Moderate fees; potential overlap with general tech ETFs; international exposure adds currency risk.

Choosing a Platform for Robotics & AI Investments in the US for 2025

The platform you choose can significantly impact your investment experience, from trading costs to access to research and advanced tools.

Traditional US Brokerages for Direct ETF Investment

For most U.S. investors, buying robotics ETFs like ROBO, BOTZ, or IRBO is best done through established brokerages. Firms like Fidelity, Charles Schwab, Vanguard, and Interactive Brokers offer commission-free ETF trading, robust research tools, and seamless integration with retirement accounts. These platforms are regulated by the SEC and FINRA, providing a secure environment for long-term investing. They also support dollar-cost averaging, dividend reinvestment, and portfolio tracking-essential features for building wealth over time.

Alternative Thematic Exposure via Specialized Trading Platforms

For sophisticated investors seeking more tactical or granular exposure, specialized platforms offer alternative routes to participate in the robotics and AI theme. While U.S. residents typically cannot trade CFDs on U.S.-listed securities due to regulatory restrictions, international brokers like Moneta Markets provide access to global markets under regulated frameworks.

• Moneta Markets: A leading international CFD and forex broker, Moneta Markets is regulated by the UK’s Financial Conduct Authority (FCA). It does not hold an ASIC license. The platform offers advanced charting tools, competitive spreads, and access to CFDs on global tech stocks and indices. U.S. investors can use it to trade CFDs on non-U.S. robotics and AI companies or related indices, where permitted. Its educational resources and analytical capabilities make it a strong choice for traders looking to complement their ETF holdings with strategic positions in individual tech stocks.
• IG: As a global CFD leader, IG offers exposure to thousands of international stocks and indices. Its research depth and risk management tools appeal to experienced traders. U.S. clients can access non-U.S. assets through offshore accounts, subject to compliance.
• OANDA: Known for its intuitive interface and competitive pricing, OANDA provides CFD access to global equities and indices. While primarily a forex broker, it supports thematic investing in technology through diversified instruments.

Important Note: CFD trading is leveraged and involves significant risk of loss. It is not suitable for all investors and is generally not permitted for U.S.-listed securities by U.S. residents. These platforms are best used for international exposure or advanced trading strategies, not as replacements for traditional ETF investing.

Risks and Considerations for Robotics ETF Investors in 2025

While the growth potential of robotics and AI is undeniable, investors must approach with eyes wide open. These funds carry unique risks that differ from broad-market index ETFs.

Market Volatility and Sector Concentration

Robotics ETFs are heavily weighted toward technology and industrial stocks, sectors known for volatility. During market corrections or risk-off periods, these funds can experience sharp drawdowns. Their performance often correlates with broader tech sentiment, making them less stable than diversified portfolios.

Technological Obsolescence

The pace of innovation in robotics is breakneck. Today’s leader could be tomorrow’s legacy player. Companies relying on outdated AI models or hardware architectures may lose market share quickly. ETFs mitigate this risk through diversification, but they can’t eliminate exposure to declining technologies.

Geopolitical and Regulatory Risks

Many robotics firms have global supply chains and face risks from trade disputes, export controls, and intellectual property conflicts. Additionally, AI ethics, data privacy laws (like potential federal AI regulations), and autonomous systems regulations are still evolving. Changes in policy could impact R&D costs, deployment timelines, and profitability.

Expense Ratios

Thematic ETFs like ROBO and BOTZ typically charge higher fees than broad-market funds like the S&P 500 ETF. Over time, even a 0.2% difference in expense ratios can significantly impact compounded returns. Investors should weigh the potential for outsized growth against the drag of ongoing fees.

Diversification Within Robotics

Holding multiple robotics ETFs can create unintended overlap. For example, both BOTZ and ROBO have heavy allocations to NVIDIA. Investors should audit their holdings to ensure they’re not overexposed to a single stock or subsector. Balancing pure-play funds with broader tech or innovation ETFs can improve portfolio resilience.

How to Invest in Robotics ETFs in the United States

Getting started with robotics ETFs is straightforward for U.S. investors:

• Open a Brokerage Account: Choose a trusted U.S. platform like Fidelity, Charles Schwab, or Vanguard. These offer easy access to ETFs and strong customer support.
• Research and Select ETFs: Use the criteria above to evaluate options. Consider your risk profile-BOTZ for aggressive growth, IRBO for lower-cost diversification.
• Fund Your Account: Link your bank account and transfer funds via ACH or wire transfer.
• Place Your Order: Search for the ETF by ticker (e.g., “BOTZ”), choose between market or limit orders, and confirm your purchase.
• Use Dollar-Cost Averaging: Invest a fixed amount monthly to reduce the impact of short-term volatility and lower your average cost basis.
• Monitor and Rebalance: Review your portfolio quarterly. Adjust allocations if your risk tolerance changes or if a sector becomes overconcentrated.

The Future of Robotics & AI: A 2025 Outlook for Investors

The robotics and AI revolution is still in its early innings. By 2025, we’re seeing early commercialization of general-purpose AI, improved dexterity in robotic manipulation, and wider deployment of autonomous systems in everyday operations. Labor shortages in manufacturing, healthcare, and logistics continue to drive adoption, while falling hardware costs make robotics more accessible. Regulatory frameworks are maturing, with federal agencies beginning to establish guidelines for AI safety and ethical deployment. Reports from leading consulting firms continue to highlight the transformative impact of AI and automation across global industries. For U.S. investors, this creates a powerful long-term thesis: robotics and AI are not just trends-they’re foundational technologies reshaping the economy. ETFs offer a disciplined, diversified way to participate in this shift without betting on individual winners.

Conclusion: Capitalizing on the Robotics Boom in the US

Robotics ETFs represent one of the most accessible and strategic ways for U.S. investors to engage with the next wave of technological innovation. From surgical robots to AI-driven logistics, the applications are real, growing, and profitable. By understanding the key trends, selecting funds based on cost and strategy, and managing risks, investors can position themselves to benefit from long-term growth. Whether you’re building a retirement portfolio or seeking aggressive growth, robotics ETFs deserve a place in your investment toolkit. For those looking beyond traditional ETFs, platforms like Moneta Markets-regulated by the FCA-offer advanced tools for tactical exposure to global tech leaders. The robotics era is here. With informed decisions and a long-term view, U.S. investors can turn this transformation into tangible wealth.

What is a Robotics ETF list?

A Robotics ETF list is a curated compilation of exchange-traded funds that focus on companies involved in robotics, automation, and artificial intelligence. These lists help investors compare funds by metrics like expense ratio, top holdings, and investment strategy, enabling smarter decisions when selecting exposure to this high-growth sector.

Which is the Best Robotics ETF for long-term growth?

The best Robotics ETF for long-term growth depends on your risk tolerance and diversification goals. Global X Robotics & AI ETF (BOTZ) offers concentrated exposure to top innovators, while iShares Robotics and AI Multisector ETF (IRBO) provides broader, lower-cost diversification. For sustained growth, consider a balance of performance, expense ratio, and sector coverage-keeping in mind that past results don’t predict future outcomes.

Are Robotics ETFs a good investment for retirement in the United States?

Robotics ETFs can be a valuable component of a retirement portfolio for investors with a long time horizon and moderate to high risk tolerance. Given their growth potential, they may enhance long-term returns. However, due to sector-specific volatility, they should be part of a diversified strategy-not the sole holding. Pairing them with stable assets like bonds or dividend stocks helps manage risk.

What is the difference between VanEck Robotics ETF (ROBO) and iShares Robotics ETF (IRBO)?

VanEck Robotics ETF (ROBO) uses a modified market-cap approach with a focus on established global robotics and AI firms, often resulting in higher exposure to industrial automation. iShares Robotics ETF (IRBO) emphasizes broader diversification across market caps and sectors, including cybersecurity and semiconductor firms that enable robotics. IRBO also has a lower expense ratio, making it more cost-efficient for long-term investors.

Can I invest in Robotics ETFs through Vanguard?

Yes, you can invest in robotics ETFs through a Vanguard brokerage account. Vanguard provides access to a wide range of ETFs traded on U.S. exchanges, including ROBO, BOTZ, and IRBO. Simply open an account, deposit funds, search for the ETF by ticker, and place your order-just like you would with any other investment.

What are the risks associated with Ibot ETF?

There is no widely recognized ETF with the ticker “IBOT” in the robotics space. However, any thematic ETF focused on AI and robotics carries risks such as market volatility, rapid technological change, regulatory uncertainty, and concentration in high-growth but unpredictable sectors. Always review a fund’s prospectus and holdings before investing to understand its specific risk profile.

How can Moneta Markets help US investors gain exposure to the robotics sector?

While U.S. investors typically buy robotics ETFs through domestic brokerages, Moneta Markets-regulated by the FCA-offers an alternative path for those seeking exposure to global robotics and AI companies. Through CFDs, investors can trade on price movements of individual tech stocks or related indices, allowing for tactical positioning and diversification beyond U.S. markets, where permitted and compliant with regulations.

What are the advantages of using Moneta Markets for alternative thematic investments related to robotics and AI?

Moneta Markets provides an advanced trading platform with competitive spreads, real-time analytics, and extensive educational tools. For investors interested in granular exposure to robotics and AI, its CFD offerings allow trading of individual global tech stocks without owning the underlying shares. This flexibility supports dynamic strategies, especially for those looking to complement passive ETF holdings with active, research-driven positions in high-growth innovators.