BlackRock is adding a robotics fund to its AI investment lineup with the launch of the iShares Future Robotics and Related Technologies Active ETF (RBTX). The new robotics ETF is for investors who want reduced exposure to AI and robotics names as the enthusiasm for bets on AI continues to drop.
The fund will trade on NYSE Arca, carrying an expense ratio of 0.65%. It will also use the MSCI ACWI Net Index as a benchmark, according to a company press release.
What RBTX actually buys
The RBTX ETF is actively managed. Its managers select different companies for the fund to invest in, instead of tracking market indices. BlackRock noted that the fund will cover the entire robotics industry.
Tesla (TSLA) is the fund’s largest holding at 5.27%, according to TradingView data. Advanced Micro Devices (AMD) accounts for 4.87%, while Nvidia (NVDA) makes up 4.59%.
BlackRock’s Tony Kim and Reid Menge manage the ETF through the firm’s Fundamental Equities Technology Team, which oversees more than $50 billion in AI and technology investments.
Why robotics, and why now
Kim said robotics could drive the next stage of AI adoption as the technology moves beyond data centers and into the physical world. He said AI is being used more widely in real-world industries, with robotics playing an increasingly important role.
The launch of the robotics ETFs coincides with investors becoming more selective about AI-related investments. Jay Jacobs, BlackRock’s US head of equity ETFs, told Reuters that recent price swings show investors are taking a more selective approach to AI investments rather than treating the sector as a single bet.
A crowded field of AI funds
BlackRock already runs the largest AI ETF in the US, the iShares A.I. Innovation and Tech Active ETF (BAI), which has attracted more than $14 billion since launching in October 2024.
BlackRock also has a strong incentive to expand its ETF offerings. Reuters reported that iShares is the world’s third-largest active ETF provider, attracting more money into its active funds than any competitor this year. Its assets have almost doubled over the last 12 months to about $200 billion.
BlackRock expects the global active ETF market to keep growing. The asset manager is projecting that assets will triple to $4.2 trillion by 2030 from $1.4 trillion.
The smartest crypto minds already read our newsletter. Want in? Join them.