The Robot ETF Showdown: BOTZ vs. ROBO

Exchange-traded funds (ETFs) remain one of the simplest ways to tap into major growth trends without dealing with the volatility that comes from owning a single stock.

That balanced approach is particularly appealing in robotics, a sector with a huge runway for long-term growth. Precedence Research values the global technology robotics market at $108.43 billion for 2026, expecting that value to climb 283% by 2035 to $416.26 billion.

Today, we'll compare two robotics ETFs, the ROBO Global Robotics & Automation Index ETF (NYSEMKT: ROBO) and the Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ), to judge which may be a winner for your portfolio.

Analyzing BOTZ holdings

The BOTZ ETF offers exposure to both robotics and artificial intelligence (AI) through holding companies that earn a significant portion of their revenue from those fields.

Below are its top two holdings by market weight, as of January 25th. I'll follow that with a quick dive into each company so any potential investor will understand what's under the BOTZ hood.

• Nvidia Corp. (NASDAQ: NVDA): 10.89% of BOTZ portfolio weight

• Fanuc Corp. (OTC: FANUY): 9.13% of BOTZ portfolio weight

Nvidia needs no introduction, as its connection to the AI world is through its advanced chips. Its robotics connection may be a little lesser known. The company says its three-computer solution in its NVIDIA Robotics division, which works on different parts of training, simulation, and deployment, enables robots to "see, learn, perceive their surroundings, and make decisions in real time."

Fanuc Corp's industrial robots are everywhere, a fact underscored in 2023 when the company produced its one-millionth robot. Its ROBOMACHINE unit sells machines for precision manufacturing for tablets, PC components, smartphones, and more. The ROBOT division provides different products for different needs, like picking and packing in the food industry or welding and tightening screws in the electronics industry.

Analyzing ROBO holdings

ROBO is also focused on the intersection of robotics and AI, but a key difference is that companies may not generate as much revenue from robotics and AI as those in the BOTZ ETF, which allows for broader investable opportunities.

Its top holding is Novanta Inc. (NASDAQ: NOVT), with a 1.94% weight.

Its second-largest holding is Fanuc Corp. Since you already got the rundown on Fanuc Corp., I'll go over its third-largest holding (1.78% of the ROBO portfolio), Ondas Inc. (NASDAQ: ONDS).

Novanta provides equipment, tools, and systems to the medical and industrial industries, with 55% of its revenue coming from the medical markets.You can think of it as a pick-and-shovel play on robotic surgeries, which is a growing market. The University of California, San Francisco, said in a 2025 report that 22% of all surgeries in the United States are robot-assisted. Novanta provides the lasers, sensors, and motion systems to the robotic surgery industry, which means it will benefit as that entire sector of the market expands.

Ondas provides private wireless networks, drones, and robotic platforms. Two key acquisitions for Ondas, Roboteam and Apeiro Motion, have expanded its robotics offering into reconnaissance, bomb disposal, logistics, and other operational services for the defense sector. Through AI, the company can analyze drone imagery and monitoring, with the company sharing use cases in oil and gas, railways, construction, and smart cities.

The robot ETF winner

You've seen the similarities in both ETFs, so let's look at how they differ to help you decide whether BOTZ or ROBO may be the better fit for your portfolio.

BOTZ may be a better fit for investors who are comfortable with a more concentrated portfolio and prefer some of the largest players in robotics and AI to be in those holdings. Its top 10 holdings account for 58.34% of its total holdings, so when those stocks are able to outperform, the ETF will perform well. The catch is that it also increases the risk of a smaller amount of stocks having a larger impact on the overall portfolio.

ROBO may be a better fit for investors who want broader diversification and less exposure to any single company. As a reminder, its top position, Novanta, accounts for only 1.94% of its total portfolio allocation. This counters the downside of being overly concentrated in just a single company or a handful of holdings within the ETF, but it also means that individual companies can't drive as meaningful returns.

If you find either of these ETFs fits your strategy, you're positioning yourself to participate in the long-term growth potential of the robotics industry.

Jack Delaney has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Fanuc. The Motley Fool has a disclosure policy.