WisdomTree debuts Physical AI ETF for humanoids and drones

WisdomTree launched the Physical AI, Humanoids, and Drones ETF (WDRN) on May 14. The fund tracks the WisdomTree Physical AI, Humanoids, and Drones Index, which ranks companies by their involvement in physical AI applications such as humanoid robotics, drones, sensors and related hardware.

Tesla and Nvidia together account for more than 11% of WDRN. The ETF charges an annual fee of 0.45%. The index assigns weights based on each firm’s measured relevance to the physical AI themes rather than solely on market capitalization or broad software exposure.

The fund’s methodology aims to include firms across the physical AI ecosystem, covering suppliers, integrators and platform makers that provide hardware, sensors and compute. Nearly half of the portfolio’s weight is assigned to companies in the industrial sector.

Market projections estimate the global humanoid robot market at about $4.89 billion in 2025, with some forecasts projecting growth to roughly $165.13 billion by 2034, reflecting a high compound annual growth rate during the period. Those forecasts anticipate a shift from early-stage prototypes toward products aimed at commercial use across multiple end markets as perception systems and related AI functions advance.

Estimates for drone markets vary by segment. Projections put the military drone market at about $15.8 billion in 2025, rising to roughly $22.8 billion by 2030. Broader measures of drone warfare and defense applications range from about $42 billion to $88 billion over a similar timeframe, depending on the metrics used.

Machine learning and sensor fusion are cited as key technologies for improving humanoid control and mobility, while AI-enabled autonomy and targeting are central to many modern drone systems. WDRN groups companies across different parts of those supply chains to provide targeted exposure to physical AI technologies.

WDRN began trading on May 14 and is intended to reflect the performance of the named index. The fund provides a single investment vehicle for exposure to the specified physical AI themes, with costs that equal 0.45% of assets annually (about $45 per year on a $10,000 investment).