Actionable news
All posts from Actionable news
Actionable news in ROBO: Robo-Stox Global Robotics and Automation Index ETF,

Are Trendy Robot Funds Making Suckers of Us All?

Robots are seen as an inescapable part of our future, whether you're Jeff Bezos romping around in a giant mechanical suit or Barack Obama warning that humans are at risk of being automated out of a job. So, as with lots of cutting-edge stuff, people are throwing money at the industry. Funds that invest in robot tech are attracting record inflows.

An error has occurred

You have 1 free Businessweek article left.

Register for more.

Register or Sign In

Already a subscriber? Link your Bloomberg Terminal account or your Businessweek subscription account to access all articles.

Yet the parallel rise on financial markets of cheap tracker funds such as ETFs, which follow trends and particular sectors—like robotics—has created some strange distortions that may be helping to support bubble-like valuations for companies with certain products.

The humble vacuum cleaner is one such oddity.

A first port of call for any general investor wanting to invest in our future robot overlords might be the ROBO ETF, designed to track the performance of the Robo Global Index. This U.S. ETF has attracted inflows of $514.1 million so far this year and risen 20 percent in value...