BlackRock adds robotics ETF to growing ranks of AI-themed products

BlackRock has launched a new exchange traded fund (ETF) focused on robotics and related technologies, as investor enthusiasm for artificial intelligence cools, according to Reuters. The iShares Future Robotics and Related Technologies ETF was introduced on Wednesday, targeting companies that utilize intelligent machines to automate tasks in various industries, including transportation and manufacturing.

BlackRock views robotics as a crucial component of the next phase of AI adoption, as intelligent machines could extend the technology beyond software and data centers into a broader range of sectors.

The launch of the new fund coincides with a recent period of volatility in AI-related investments. Jay Jacobs, BlackRock's US head of equity ETFs, stated that the recent swings highlight that AI exposure is becoming a more complex investment theme, requiring investors to be deliberate about where and how they take exposure. Despite the volatility, Jacobs emphasized that BlackRock's conviction in the broader AI theme remains unchanged.

The market for AI ETFs is expanding rapidly, with numerous funds now available that target specific aspects of the AI investment story. Investors can choose from a multitude of AI-focused ETFs, alongside technology-focused funds that have significant exposure to major AI-linked companies such as Nvidia and Micron. Over the past month alone, at least six AI-linked ETFs have been launched, each targeting different corners of the industry rather than adopting a broad approach.

Global X recently introduced the LLM ETF, which focuses on firms developing large language models, while Defiance launched an ETF that targets bonds issued by AI infrastructure companies. BlackRock's CEO, Jay Jacobs, highlighted that expectations around AI can change quickly, adoption may develop unevenly, and market risk remains concentrated among a relatively narrow group of companies.

He noted that expectations can shift rapidly, adoption can develop unevenly, and market risk remains concentrated in a relatively narrow group of companies.