BlackRock has launched another exchange-traded fund focused on artificial intelligence, expanding its range of investment products tied to the technology even as market volatility and uneven adoption challenge investors’ enthusiasm for the AI trade.
The world’s largest asset manager said on Wednesday that its iShares Future Robotics and Related Technologies ETF (RBTX) would invest in companies using intelligent machines to automate repetitive tasks across industries such as transportation and manufacturing. BlackRock views robotics as a key area in the next phase of AI adoption, as the technology moves beyond software applications into physical systems capable of performing work in industrial and commercial settings.
The launch comes amid growing interest in specialized investment products that give investors exposure to different segments of the AI industry. At the same time, investors are becoming more selective about where they place their money as expectations for technology adoption shift and market risks remain concentrated among a relatively small group of companies.
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“Recent volatility is a reminder that AI is not a single trade and that investors need to be deliberate about where and how they take exposure,” said Jay Jacobs, BlackRock’s US head of equity ETFs.
The volatility has not weakened the firm’s conviction in the long-term AI investment theme, Jacobs added. However, he warned that expectations can change quickly, adoption may progress unevenly, and market risks remain concentrated in a narrow group of companies.
AI has increasingly become a source of both returns and risk, including within broadly diversified portfolios, as technology stocks account for a substantial share of market performance.
BlackRock’s new fund targets the intersection of AI and robotics, an area that could benefit as businesses seek to automate physical tasks, improve productivity and reduce dependence on repetitive manual processes.
Unlike AI applications focused primarily on generating text, images, or software code, robotics combines intelligent systems with machines that interact with the physical world. Potential applications span manufacturing, logistics, transportation, and other industries where automation can improve efficiency or address operational constraints.
For investors, the appeal is the possibility that AI adoption will extend beyond the companies developing large language models and the semiconductor suppliers powering data centers. Robotics could broaden the range of businesses benefiting from the technology as AI systems become more capable of interpreting their surroundings and carrying out tasks.
However, commercial adoption is unlikely to progress uniformly. Companies must demonstrate that automated systems can operate reliably, integrate with existing equipment, and deliver economic benefits that justify their purchase and maintenance costs. Deployment may also depend on safety requirements, infrastructure investment and the complexity of the tasks being automated.
Those considerations make robotics a distinct investment proposition rather than simply another way to invest in the same companies dominating the broader AI market.
BlackRock’s product launch also reflects the growing effort by asset managers to package emerging technology themes into specialized funds. Such products allow investors to target particular areas of the AI ecosystem without having to select individual stocks, although their performance is still tied to the companies held in each portfolio and the prices investors pay for exposure.
Investors already have access to scores of exchange-traded funds explicitly linked to AI, alongside dozens of technology-focused funds with significant exposure to companies such as Micron and Nvidia.
The expanding range of products reflects the breadth of the AI investment thesis, which encompasses semiconductor manufacturing, cloud computing, data-center infrastructure, software development and applications built around AI models. At least six AI-linked ETFs have launched in the past month, according to the report, with many targeting narrower segments of the market rather than offering broad exposure to the technology.
Global X recently introduced the LLM ETF, which provides exposure to companies developing large language models. Defiance has also launched an ETF targeting bonds issued by AI infrastructure companies, giving investors a route into the debt financing behind the sector’s expansion.
The emergence of products targeting both equities and bonds shows that AI investment is extending beyond the shares of prominent technology companies. Investors can now seek exposure to businesses developing AI models, companies supplying the computing infrastructure needed to run them, and borrowers financing the construction of that infrastructure.
Yet the proliferation of specialized funds does not necessarily mean that every segment offers attractive returns. A strong long-term growth outlook can coexist with disappointing investment performance if valuations already incorporate expectations that prove difficult to meet.
Investors must also distinguish between companies that develop AI technology, those that supply the infrastructure and those that use it to improve their operations. These groups face different cost structures, competitive pressures, and paths to profitability, meaning the commercial benefits of AI may not be distributed evenly across the market.
Jacobs’ warning that AI is not a single trade captures this distinction. The technology may continue to spread across industries while individual companies and investment themes experience very different outcomes.
BlackRock’s decision to expand its AI product range during a period of market uncertainty highlights the tension between the technology’s long-term potential and the challenges of investing in it today.
Robotics could create new opportunities if businesses deploy more intelligent machines in factories, warehouses, and transportation systems.