Advisors Add Thematic ETF Sleeve: Memory, Robotics, Space

At the TMX VettaFi Midyear Symposium, a poll found 73% of financial advisors maintain a dedicated thematic ETF allocation in client portfolios, most often a 1-5% satellite sleeve. Respondents named the Roundhill Memory ETF (DRAM), the ROBO Global Robotics and Automation Index ETF (ROBO) and the Procure Space ETF (UFO) as typical choices.

When attendees were asked “How much exposure do you have to thematic strategies in your average client portfolio?”, 26.9% reported no exposure, 44.8% reported 1-5%, 19.4% reported 6-10% and 9% reported more than 10%.

Panel discussion and survey responses highlighted three focused themes: memory, robotics and commercial space. DRAM concentrates on companies involved in memory and storage and recorded more than $18 billion in net inflows within roughly three months of its launch, according to symposium materials. Presenters linked demand for high-performance memory to the scaling of artificial intelligence infrastructure.

Robotics and automation drew separate discussion. Zeno Mercer, senior research analyst at VettaFi, led the robotics session and cited labor shortages, nearshoring and pressure to raise manufacturing efficiency as factors driving automation adoption. The ROBO ETF holds about $2 billion and tracks a global mix of firms across sensing, control, manufacturing and logistics.

Space-related investing was described as extending beyond government programs into a larger commercial market. The UFO ETF targets satellite operators, space hardware and communications infrastructure. Symposium materials list SpaceX among the fund’s top holdings and show other companies in the portfolio such as Trimble, Garmin and Sirius XM.

On portfolio construction, most advisors treat thematic ETFs as satellite positions rather than core holdings. Conversation at the symposium focused on allocation size and which specific thematic vectors align with client objectives.

VettaFi hosted the symposium and serves as the index provider for ROBO and UFO, receiving an index licensing fee for those funds. VettaFi is not the issuer or sponsor of ROBO or UFO and has no obligations related to their issuance or administration.