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Robotics & Automation: Fascinating trade fair visitors and investors
The Hanover trade show on industrial automation describes itself as “the global hotspot for Industry 4.0”. And it’s true – linking traditional production with the possibilities of modern IT plays a key role at this major industry event. At the most recent edition, in April 2018, the 200,000-plus visitors were able to gain an impression of the latest technological trends. The automation solutions and industrial robots on show at the event generated astonishment. On the stock market, too, the English expression “Robotics & Automation” has arrived. Companies operating in this area are attracting investors, with high growth rates and strong share performance. To enable investors to have systematic and diversified access to the segment, Leonteq has launched a Solactive Industrial Robotics & Automation Index tracker certificate.
Index methodology: Strict criteria, regular adjustment
The composition of the benchmark is arrived at using a multi-stage selection process. The first of these involves the companies satisfying a range of quantitative criteria. In addition to a stock market listing in an industrialised country, these include adequate share liquidity and a market capitalisation of at least USD 1 bn. Furthermore, the free-float must be not less than one-tenth of the overall stock. To be considered for the Index, the companies must be active in one of the following sectors: production automation, the general semiconductor industry, industrial machines (parts and accessories), semiconductor processors, application-specific integrated circuits or the specialist semiconductor industry. From the companies making it through the sieving process as outlined, those companies whose share price trend was negative over the past twelve months are screened out. After this, the 30 companies with the highest market capitalisation are included in the Index. One further restriction applied: only nine shares from the same sector can be included in the selection at any one time. The Solactive Industrial Robotics & Automation Index is rebalanced on a quarterly basis.
Index composition: Industry 4.0 specialists from all over the world
In the initial listing, it is US shares that are setting the tone. Representatives from the world’s biggest economy include the semiconductor giant Intel and Lincoln Electric, a company specialising in welding devices. Naturally, the leading robot constructors are also represented. Sector giant Fanuc made it into the Index, together with a further five further companies from Japan. Index member Hexagon is similarly positioned at the very heart of Industry 4.0. The Swedish group supplies software and sensors used in a wide range of sectors of industry. The historical simulation backs up the Solactive Industrial Robotics & Automation Index: back-testing to 2012 demonstrated impressive performance. Of course, the historical trend is not an indicator of what will happen in future. However, the strong global economy, together with the technological shake-up in the industry, argue in favour of the Index concept. Click here to directly access the current index composition of the «Solactive Industrial Robotics & Automation Index».