L&G Robo Global Robotics and Automation

ETF description

This ETF focuses on companies involved in the automation and robotics industry. It invests in businesses that design, develop, and produce automated systems and robotic technologies used in a wide range of sectors, such as manufacturing, healthcare, and logistics.

This ETF may appeal to investors who are interested in the growth potential of automation and robotics as these technologies become more integrated into everyday business operations. It could suit those looking to diversify their portfolio by investing in a specific segment of the technology sector that is expected to play an increasingly important role in the global economy.

Issuer details

Legal & General Investment Management (LGIM) is one of Europe’s largest asset managers and a subsidiary of Legal & General Group plc. With over £1.5 trillion in assets under management as of June 2024. Established in 1836, LGIM has a long history and is known for its strong focus on index investing, providing investors with cost‑effective and diversified exposure to various markets. LGIM is also recognized for its innovative ESG integration across its investment strategies and expertise in liability‑driven investment (LDI) solutions. Notable ETFs include the L&G Global Technology Leaders UCITS ETF and the L&G Cyber Security UCITS ETF, reflecting LGIM’s commitment to providing access to innovative and thematic investment themes. LGIM offers a range of investment solutions and covers various market segments.

Index details

The ROBO Global Robotics and Automation UCITS index tracks the performance of a basket of stocks of companies that are actively engaged in robotics and automation related activities.

The Index is comprised of companies which are publicly traded on various stock exchanges around the world that generate a material proportion of their revenues from the robotics and automation industry. The industry is deemed to be comprised of the following two subsectors: (1) Technology, which includes sensing, processing, computing and artificial intelligence, actuation, and integration; and (2) Applications, which includes manufacturing and industrial automation, 3D printing, logistics automation, food and agriculture, surveillance and security, energy, healthcare and consumer products.

A company is only eligible for inclusion in the Index if it is of a sufficient size (determined by reference to the total market value of its shares) and it is sufficiently ‘“liquid”’ (a measure of how actively its shares are traded on a daily basis). Within the Index, companies are weighted according to a modified ROBO‑factor weighting scheme. The Index is rebalanced quarterly in March, June, September and December.