Asset manager WisdomTree Inc (NYSE:WT) has launched the WisdomTree Physical AI, Humanoids, and Drones Fund (BATS:WDRN), aiming to tap into what the firm sees as the “next phase of artificial intelligence” — the shift from digital AI tools to real-world autonomous systems. The ETF tracks the WisdomTree Physical AI, Humanoids, and Drones Index.
The fund is designed to provide exposure to companies developing or enabling "Physical AI Activities," including robotics, drones, autonomous vehicles, AI-powered manufacturing systems and intelligent automation technologies across industries such as healthcare, agriculture, construction and defense.
Key features of WDRN ETF:
- Targets companies involved in humanoid robotics, autonomous drones, smart manufacturing and AI-driven logistics systems.
- Provides exposure across five Physical AI verticals, including robotics, mobility and warehouse automation.
- Expands beyond traditional AI software and semiconductor-heavy technology ETFs.
- Includes companies across different market capitalizations, regions and development stages.
- Uses a systematic, rules-based index methodology with quarterly rebalancing.
- Trades with a management fee of 0.45%.
The launch comes as investor appetite for AI-themed ETFs continues to surge following the explosive rally in semiconductor and automation stocks tied to the generative AI boom.
WisdomTree said AI is increasingly moving beyond chatbots and software-based tools into physical environments where machines can perceive surroundings, make decisions and execute tasks autonomously. Industry forecasts suggest the humanoid robotics market alone could grow into a multibillion-dollar opportunity over the next decade, while autonomous drone adoption is accelerating across defense, logistics and industrial inspection.
According to Fortune Business Insights, the global humanoid robot market size is expected to grow to $165.13 billion by 2034 at a CAGR of 50.60% from 2026 to 2034.
Christopher Gannatti, Global Head of Research at WisdomTree, said advances in AI models, robotics and computing are driving adoption across autonomous transportation, smart factories and military drone systems. The company believes the trend could create a major new investment cycle tied to semiconductors, industrial automation and infrastructure supporting physical AI deployment.
WDRN seeks to capture that opportunity through a diversified, rules-based portfolio spanning multiple sectors, geographies and market capitalizations tied to the evolving robotics ecosystem.
Photo: Around the World Photos via Shutterstock.com
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