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Investing in robotics stocks

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

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.

1 - 7 of 7
Name Product Price per trade Inactivity fee Asset class International
eToro
Finder AwardExclusive
eToro
$0
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
CFD service. Capital at risk.
Join the world's biggest social trading network when you trade stocks, commodities and currencies from the one account.
CMC Invest
Finder Award
CMC Invest
$0
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply).
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Moomoo Share Trading
US$0.99
$0
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get an additional 30 days on top of the regular brokerage-free period for new accounts. T&Cs apply.
Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 20 million investors.
Spaceship US Investing
US$0
$0
US shares, ETFs
Yes
Dive into US markets with $0 brokerage, starting with just a $10 investment.
Unlock US stocks and ETFs with minimal entry barriers, offering straightforward, low-cost options for new and seasoned investors.
Tiger Brokers
US$2
$0
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get 10 no-brokerage US or ASX market trades in the first 180 days + 7% p.a. on uninvested cash + US$30 TSLA & US$30 NVDA shares with deposits up to AU$2,000. T&Cs apply.
Trade Australian, US and Asian stocks with no minimum deposit on Tiger Broker’s feature-packed platform.
Webull
US$0.25
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Sign up & deposit $200 to get $100 of rewards value, or deposit $1,000 to get $200 worth. Up to $5,450 value available. T&Cs apply.
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
Saxo Invested
US$1
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Access 22,000+ stocks on 50+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. 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. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

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