To ride the “physical AI” boom while keeping risk in check, spreading across three ETFs can make a lot of sense.

 

Why diversify an investment in Physical Ai (Robotics and Ai Automation) into 3 ETFs

• Different construction methods: Passive index, equal-weight index, and active management will behave differently in bull/bear phases.

• Factor diversification: You get mega-caps (NVIDIA, ABB), mid/small innovation plays (Symbotic, Ocado), and early-stage disruptors (eVTOL, drones).

• Risk management: Cuts concentration risk from one sector shock (e.g., if industrial automation slows but defense robotics accelerates).

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My pick for a balanced 3-ETF mix (as of Aug 2025)

ETF	Role in the Trio	Why it earns a slot
RBOT (TSX)	Core robotics/AI index, CAD access	Your “set-and-forget” Canadian-listed core. Holds the global robotics leaders, easy to keep in a TFSA/RRSP without FX conversions.
ROBT (Nasdaq)	Mid/small-cap & equal-weight tilt	Captures smaller innovators and balances weighting so you’re not 30% NVIDIA. Adds Symbotic, Ocado, Palantir, Ambarella.
ARKQ (Nasdaq)	High-octane growth sleeve	Active bets on early-stage autonomy—drones, eVTOL, defense robotics. Higher volatility, but asymmetric upside in breakthroughs.

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Allocation Example (Moderate Risk)

• RBOT: 45% (core global leaders, CAD-listed stability)

• ROBT: 35% (innovation/mid-cap kicker)

• ARKQ: 20% (high-growth satellite position)

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Outlook (2 years)

• Base case: Global capex into automation, warehouse robotics, and industrial AI keeps order books healthy.

• Upside case: Breakthrough in humanoid/physical AI or defense robotics triggers re-rating in ARKQ and small/mid-caps.

• Downside risks: Global manufacturing slowdown, policy restrictions (export controls on chips/sensors), or prolonged rate pressure.

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ROBT‑RBOT-ARKQ portfolio (45% / 35% / 20%), since that mix offers a balanced combination of core robotics, innovation exposure, and high‑conviction growth.

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1-Year Performance Recap

ETF	12-Month Return
RBOT (TSX)	+14.05% total return Seeking Alpha+6
ROBT (Nasdaq)	Trend suggests ~+10–15% potential; average price target shows +15.35% upside range TipRanksStockInvest
ARKQ (Nasdaq)	Previously reported +61.7%, but we’ll conservatively estimate around +50–60% for modeling purposes

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Estimated Past-12-Month Return for the 45/35/20 Mix

• RBOT (45% weight): 0.45 × 14.05% ≈ 6.32%

• ROBT (35% weight): 0.35 × 15.35% ≈ 5.37%

• ARKQ (20% weight): 0.20 × 55% ≈ 11.00%

Estimated blended return ≈ 6.32% + 5.37% + 11.00% = ~22.7%

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2-Year Outlook

No crystal ball, but here’s what the market data and forecasts suggest:

• Robotics sector growth: Expected CAGR ~11–15% through 2030 as robot deployment expands and unit costs fall Nasdaq+14Kiplinger+14StockAnalysis+14.

• ROBT’s forecast: Average price target implies further mid-teens upside (~15%) ahead TipRanks.

• ARKQ’s alpha potential: If key themes (e.g., autonomous logistics, drones, e-VTOL, defense robotics) catch fire, ARKQ could continue delivering outsized returns—but volatility will remain elevated.

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Conclusion: Is This Mix a Smart Choice?

• Yes, if you want diversified robotics/AI exposure with:

  • Stability & CAD convenience (RBOT)

  • Broader innovation & mid-cap upside (ROBT)

  • Aggressive, high-growth bets (ARKQ)

• Result: You get both consistency (via RBOT), balanced innovation (via ROBT), and serious upside potential (via ARKQ).