Key facts
- BlackRock believes robotics is key to the next wave of AI adoption.
- The new ETF focuses on companies using intelligent machines for repetitive tasks.
- Recent volatility has made investors more cautious about the AI investment theme.
BlackRock launched a new exchange-traded fund focused on robotics and related technologies on Wednesday, expanding its suite of AI-themed products. The iShares Future Robotics and Related Technologies ETF aims to invest in companies that employ intelligent machines to automate tasks in industries such as transportation and manufacturing, which BlackRock views as the next significant area for AI adoption.
Despite the launch, investor enthusiasm for the AI theme has faced recent headwinds, according to Jay Jacobs, US head of equity ETFs at BlackRock. He noted that recent volatility serves as a reminder that AI is not a monolithic investment and that market risk remains concentrated in a few companies.
Investors have a wide array of options, with scores of ETFs explicitly tracking AI and dozens more technology-focused funds holding significant stakes in AI-related stocks like Micron and Nvidia. Several other AI-linked ETFs have debuted in the past month, often focusing on niche areas such as large language models or AI infrastructure bonds.