Rainer Michael Preiss — Global Markets Commentary | July 2026
As artificial intelligence moves from software into the physical world, robotics and automation emerge as one of the most attractive long-term structural themes.
Investment Rating
| Rating | BUY |
| Investment Horizon | 5–10 years |
| Risk Profile | Medium-High |
| Suitable Allocation | 3–5% core thematic allocation; up to 8% for growth-oriented portfolios |
Executive Summary
The next stage of artificial intelligence is shifting from software to the physical economy. Robotics, industrial automation, machine vision, warehouse automation, autonomous systems and medical robotics are expected to become major beneficiaries. The ROBO ETF provides diversified global exposure to companies enabling this structural transformation.
Why Invest Now?
- AI adoption is expanding into factories, logistics and healthcare.
- Ageing populations and labour shortages are accelerating automation.
- Manufacturing reshoring requires higher levels of factory automation.
- Falling hardware costs and improving AI models are increasing commercial adoption.
- Diversified exposure reduces single-stock risk versus owning only mega-cap AI companies.
Investment Catalysts
- Humanoid robots entering commercial deployment
- Warehouse and logistics automation
- Semiconductor capacity expansion
- Healthcare robotics and robotic surgery
- Industrial productivity and reshoring
Portfolio Role
ROBO complements broad global equity exposure and semiconductor or AI software holdings by providing exposure to the application layer of AI. It is suitable as a satellite position within diversified global portfolios.
Key Risks
- Cyclical manufacturing spending
- Technology sector volatility
- Higher interest rates affecting growth valuations
- Execution risk for emerging robotics technologies
Conclusion
We believe robotics and automation represent one of the most attractive long-term structural investment themes. As AI increasingly moves into the physical world, demand for automation solutions should continue to expand across industries. We therefore maintain a BUY recommendation on the ROBO Global Robotics & Automation ETF for long-term investors seeking diversified exposure to Physical AI.
This commentary is provided for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors should consider their objectives, risk tolerance and consult professional advisers before investing. Past performance is not indicative of future results.
Rainer Michael Preiss is a German national and an investment advisor based in Singapore. He has over 25 years of experience in global private banking and multi-family office business across Europe, Middle East, Africa and Asia. Michael was previously the Chief Equity Strategist at Standard Chartered Bank (SCB) where he was one of seven voting members on the Global Investment Council which decided on SCB's global investment policy. He is also a prolific and renowned contributor to the financial media world where he is a columnist for Forbes and is frequently featured on Bloomberg, CNA and CNBC.
