BlackRock launches robotics ETF as AI investors turn selective

BlackRock launched the iShares Future Robotics and Related Technologies ETF on Wednesday, October 21, targeting companies that use intelligent machines to automate repetitive work in sectors including manufacturing and transportation. Economic Times Markets, citing Reuters, reported that the launch comes as investors become more selective about their exposure to artificial intelligence.

The asset manager views robotics as a route for AI adoption to spread beyond software and data centres into physical operations across more industries. The new exchange-traded fund adds a more specialised option to its expanding AI-focused range.

Conviction in AI, but greater attention to exposure

Jay Jacobs, BlackRock’s US head of equity ETFs, said recent market swings highlighted the need to distinguish between different AI investments rather than treat the entire theme as one trade. He said the volatility had not weakened the firm’s broader conviction in AI.

Jacobs also cautioned that expectations can move rapidly, adoption can progress at different speeds and market risk remains concentrated in a relatively small group of companies. His comments frame the robotics launch as a targeted approach to AI, rather than a claim that every part of the sector will advance together.

A growing range of specialised AI funds

At least six AI-linked ETFs have launched over the past month, according to the reporting. Investors already have scores of explicitly AI-focused ETFs to choose from, alongside technology funds with substantial exposure to companies such as Nvidia and Micron.

Recent launches illustrate how fund providers are dividing the theme into narrower categories. Global X introduced the LLM ETF for companies developing large language models, while Defiance launched a fund targeting bonds issued by AI infrastructure companies. BlackRock’s robotics offering focuses instead on businesses using intelligent machines to automate tasks.