“Pension investors, just memorize this. These are the ETFs that will make you smile in the end if you consistently accumulate them: U.S. representative index ETFs, robotics and automation ETFs, and monthly dividend ETFs. Most pension investments end within these categories.”

This is the investment advice gaining attention in pre-retiree communities these days. The so-called “pension trio” strategy positions U.S. representative index ETFs as a solid foundation, supplemented by robotics ETFs targeting growth potential and monthly dividend ETFs that provide regular cash flow. Robotics ETFs, one pillar of the pension trio, have attracted approximately 3 trillion Korean won in funding this year alone. However, not all robotics ETFs are the same. Returns and investment characteristics vary significantly depending on their holdings. We compared returns, asset sizes, key components, and fees to identify suitable products for pension accounts.

The largest robotics ETF by assets under management, with 1.57 trillion Korean won, is Samsung Asset Management’s ‘KODEX Robot Active’. Listed in November 2022 as Korea’s first robotics ETF, it has achieved a 310% return since inception. Driven by expectations for the robotics industry’s growth, it has seen steady inflows of approximately 630 billion Korean won this year alone. Its portfolio is composed of large-cap stocks like Samsung Electronics, Robotis, Hyundai Mobis, Hyundai AutoEver, and LG Electronics, accounting for about 40%. It also includes smaller KOSDAQ robotics-related firms such as SBB Tech, KoYoung, JVM, and SOSLab to enhance future growth potential.

As expectations for Korea’s robotics industry grow, asset managers are competing to launch new products with clearer investment strategies. Five new robotics ETFs were listed this year alone. Mirae Asset Global Investments’ ‘TIGER Korea Humanoid Robot Industry’ stands out for its high proportion of specialized robotics firms like Doosan Robotics, Robotis, and Rainbow Robotics. However, it excludes Hyundai Motor, a major shareholder of U.S. robotics firm Boston Dynamics.

For investors looking beyond domestic robotics stocks to global ecosystems, options expand further. Some ETFs focus exclusively on U.S. (KODEX, RISE, KoAct) or Chinese (KODEX, TIGER) robotics firms, while others diversify across global robotics companies.