Home etftrends.com Navigating the Robotics Landscape: ROBO’s Q1 2024 Index Rebalance

Navigating the Robotics Landscape: ROBO’s Q1 2024 Index Rebalance

This article examines the first rebalance and reconstitution of 2024 for the ROBO Global Robotics and Automation Index. This index underlies the $1.3 billion ROBO Global Robotics and Automation Index ETF (ROBO). Index movements are due to scoring changes resulting from a combination of sector trends, individual companies’ financial health, quantitative analysis, and the insights of seasoned professionals and an advisor network. The rebalance and reconstitution took place on March 15, 2024.

Every quarter, the ROBO Global Indices undergo a rebalancing process based on our proprietary, research-driven scoring methodology. This methodology considers various factors. These include revenue purity, market leadership, technology leadership, financials, growth opportunities, Investment areas, and business models, as well as macro and regulatory considerations.

Our scoring framework assesses companies based on their revenue generated from business activities related to their assigned subsector(s), their investments in existing or new business areas, market share, addressable markets, competitive advantages, executive leadership, financial stability, and risk factors relative to their peers. Additionally, we evaluate each company’s technological capabilities, technical moats, patents, development pace, positioning, and innovation factor within their specific theme and subsectors.

The ROBO Global team is advised by world-leading experts in robotics and AI, including members of our strategic advisory board such as Daniela Rus, Ph.D.., Henrik Christensen, Ph.D., Wyatt Newman, Ph.D., and Illah Nourbakhsh, Ph.D.

The changes this quarter were as follows:

ROBO Index Rebalance: Additions

Joby Aviation

Joby Aviation is a leader in the development of all-electric, vertical take-off and landing (eVTOL) aircraft. It has been added to the ROBO Global Automation Index. That inclusion is due to its innovative technology and potential to revolutionize urban transportation. Joby’s eVTOLs are designed to provide fast, quiet, and emissions-free aerial ridesharing services, offering a compelling solution worldwide.

Joby has achieved key milestones in manufacturing, certification (now in stage 4 of 5 for the FAA certification process), and strategic partnerships (exclusive air tax rights in Dubai, Toyota as Technical Partner). The firm leverages cutting-edge electric propulsion, autonomous systems, and precision manufacturing. It also is poised to make emissions-free, convenient aerial ridesharing a reality. That will unlock transformative opportunities in the rapidly growing eVTOL market.

Source: https://www.jobyaviation.com/news/joby-flies-quiet-electric-air-taxi-new-york-city/  

Shenzhen Inovance Technology Co.

Shenzhen Inovance Technology Co., a leading industrial automation solutions provider, has been added to the ROBO Global Automation Index. Inovance’s innovations span the full range of industrial automation. They range from compact high-performance drives and servos to application-specific solutions leveraging their PLCs, HMIs, motion control and CNC technologies. This positions them to optimize machines and production lines across a wide variety of industries.

Inovance is further well-positioned to capitalize on the growing industrial automation market.

ROBO Rebalance 2

Source: https://idea-tech.in/about/about-inovance/ 

ROBO Rebalance 3

Source: https://www.inovance.eu/fileadmin/_processed_/6/7/csm_Product_family_d0008cda7f.png 

ROBO Index Rebalance: Removals

Faro Technologies

Faro Technologies faces mounting challenges in the growing 3D measurement, imaging, and realization markets. New players, ranging from direct competitors to nontraditional entrants and open-source projects, are introducing innovative methods to recreate 3D environments using less expensive or proprietary techniques. This dynamic landscape threatens to disrupt Faro’s established business model.

Luminar

Luminar’s technology has shown promise in enabling high-performance, long-range 3D perception for autonomous driving. However, the company faces increasing competition and market pressures. The autonomous vehicle landscape is rapidly evolving. New entrants are leveraging advancements in computer vision, AI, and alternative sensor technologies. These developments are leading to potential commoditization and price erosion in the lidar market. Additionally, significant launch delays with key partner Volvo have impacted Luminar’s growth trajectory and cash position. As the autonomous driving market matures and consolidates, Luminar will need to demonstrate a clear path to profitability and differentiation to remain competitive.

For more information on the methodology of the ROBO Global Robotics and Automation Index please visit the index’s home page.

For more news, information, and analysis, visit the Disruptive Technology Channel.

VettaFi LLC (“VettaFi”) is the index provider for ROBO, for which it receives an index licensing fee. However, ROBO is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ROBO.

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