Investing in robotics stocks

Its applications are far-reaching, but company valuations tend to be high.

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Robots automate the world around us and enjoy an impressively diverse range of uses. But is investing in robotics stocks worth your money? Robotics may be on the rise, but high rates of competition may threaten your investment.

What is robotics?

Robotics is the study, design and construction of robots. The field is closely related to many engineering disciplines, including computer science, artificial intelligence and bioengineering.

There are many types of robots, including drones, telepresence devices, self-driving cars, household appliances, toys, industrial machines and so many more. As the field of robotics continues to expand, the more likely we are to encounter robots in our daily lives.

Robotics stocks come from companies involved in the conception or construction of robots. Broadly speaking, they include:

  1. Core automation and production. Focused on the development and construction of robots and automated processes.
  2. Robot technology. Specialize in specific segments of the robot market, like vision systems, sensors and video compression.
  3. Industrial software. Develop industrial software solutions that enable automated robotic processes.
  4. Robotic integration. Use robotics to enhance their product offerings, like domestic appliances, farming equipment and aircraft systems.

How to invest in robotics?

There are several ways you can invest in robotics stocks. You can buy shares of individual robotics stocks. You can also purchase shares of an ETF that invests in several stocks.Here's how to start:

  1. Choose a stock trading platform. You have plenty to choose from in Australia, so be sure to compare your options to find the one that works best for you.
  2. Open your account. Be ready with your ID and bank account information.
  3. Fund your account. You'll need to transfer money to your brokerage account before you can start investing. Some platforms let you start with as little as $1.
  4. Search for stocks. Look up stocks by ticker symbol or use a stock screener to filter the types you're interested in.
  5. Place an order. Once you've found an investment you want, specify how much of it you wish to purchase and submit your order.
  6. Monitor your investments. Track the performance of your portfolio by logging on to your account.

Robotics stocks

The robotics industry is growing in Australia and internationally. Investors can select from stocks traded directly on Australian exchanges or purchase over-the-counter shares from international companies.

Robotics stocks on AU exchanges

International robotics stocks

To purchase these stocks, you'll need an international share trading account. Because a lot of beginner-friendly brokerages, this can limit your account options.

  • Daifuku (OTC: DFKCY)
  • Fanuc (OTC: FANU.Y)
  • KION Group (OTC: KIGR.Y)
  • Kuka (OTC: KUKA.F)
  • Siemens (OTC: SIEG.Y)
  • Yaskawa (OTC: YASK.Y)

What ETFs track robotics stocks?

Most ETFs that track robotics companies also have an eye on the artificial intelligence industry.

  • BetaShares Global Robotics and Artificial Intelligence ETF (RBTZ)
  • ETFS ROBO Global Robotics and Automation ETF (ROBO)

Why invest in robotics stocks?

It’s hard to argue against the excitement of investing in the tech sector. And the robotics industry in particular presents an enticing opportunity for investors.

There’s a lot of long-term growth potential in robotics. Like artificial intelligence, the robotics industry is on an impressive growth trajectory.

From 2018 to 2026, the robotics industry is expected to grow by about 11% per year, according to the Global Industrial Robotics Market Analysis 2020. And the sweeping practical applications of this technology seem endless including uses in healthcare, industrial assembly, military, automotive, consumer goods.

Robotics stocks also offer investors the opportunity to back a technology they may actually benefit from like surgical robots, disaster-response robots or farming robots.

Risks of investing in robotics stocks

There are two risks to consider before you invest in robotics stocks: competition and company valuations.

Market sectors poised for growth hold plenty of investment potential but tend to experience higher rates of competition. And competition can be cutthroat — especially for newly hatched startups that lack the capital and resources of better-established companies.

And the other major risk factor associated with robotics stocks plays into the first: high company valuations. It’s no secret that the robotics industry is on an upward trajectory, and the market has adjusted in response. Like many other industries in this sector, robotics stocks can get expensive, and that’s a result of the higher valuations associated with companies in this industry.

The bottom line? Australian investors risk pouring funds into an expensive stock only to watch the company flounder amid competition.

Compare trading platforms

To invest, you’ll need a brokerage account. Explore your options below.

Name Product Standard brokerage fee Inactivity fee Markets International
eToro (global stocks)
US$0
US$10 per month if there’s been no login for 12 months
Global shares, US shares, ETFs
Yes
Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
IG Share Trading
$8
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
Yes
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
$5
No
ASX shares, US shares
Yes
Earn up to 15,000 Qantas frequent flyer points when you transfer an exisiting balance or trade. Offer valid for all new and existing Superhero members until 28 February.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
ThinkMarkets Share Trading
$8
No
ASX shares
No
Limited-time offer: Get 10 free ASX trades ($0 brokerage) when you open a share trading account with ThinkMarkets before 31 December 2021(T&Cs apply). $8 flat fee brokerage for CHESS Sponsored ASX stocks (HIN ownership), plus free live stock price data on an easy to use mobile app.
Bell Direct Share Trading
$15
No
ASX shares, mFunds, ETFs
No
Finder Exclusive: Get 5 free stock trades and unlimited ETF trades until 31 Dec 2021, when you join Bell Direct. T&Cs apply.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
Saxo Capital Markets (Classic account)
$5
No
ASX shares, Global shares, ETFs
Yes
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
CommSec Share Trading Account
$10
$0 for ASX shares, US$25 for global
ASX shares, Global shares, Options trading, ETFs
Yes
Trade with Australia's largest online stockbroking firm.
Enjoy fast, simple and affordable trades, with market leading research and broker recommendations all in one platform
CMC Markets Invest
$11
No
ASX shares, Global shares, mFunds, ETFs
Yes
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
SelfWealth (Basic account)
$9.5
No
ASX shares, US shares
Yes
Trade ASX and US shares for a flat fee of $9.50, regardless of the trade size.
New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
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Compare up to 4 providers

Important: Share trading can be financially risky and the value of your investment can go down as well as up. Standard brokerage is the cost to purchase $1,000 or less of equities without any qualifications or special eligibility. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Bottom line

The field of robotics is growing and there are many ways to apply the technology. But the price of investing in robotics may be higher than Australian investors are willing to risk in such a competitive industry.

Review your platform options with multiple providers before you open an account.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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