Key Points

The KraneShares Global Humanoid Robotics ETF provides targeted exposure to this expanding technology area.
Investors are directing capital toward this ETF in 2026 as it marks its first anniversary this month.
Morgan Stanley projects the humanoid robotics sector could exceed $5 trillion by 2050.
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Although the artificial intelligence investment case remains early, certain investors are shifting focus to the subsequent major tech development. This centers on humanoid robots along with physical AI.

These ideas are straightforward. Humanoid robots mirror human form and operate alongside people to improve output. They form part of physical AI, which covers autonomous technologies including self-driving cars and surgical robots.

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This ETF serves as an effective vehicle for humanoid robotics equities. Image source: Getty Images.

Seasoned investors recognize numerous robotics equities and several ETFs centered on the theme. Yet for dedicated focus on humanoid robotics, the KraneShares Global Humanoid Robotics and Physical AI Index ETF (NASDAQ: KOID) stands out.

An emerging ETF gaining traction

This fund follows the MerQube Global Humanoid and Embodied Intelligence index and represents the first such ETF available in the U.S., securing an early lead. Investors appreciate this position and the fund's focused approach. It turns one year old on June 4 while holding $241 million in assets under management.

Year-to-date inflows reaching $89 million reinforce the total, showing investor recognition of opportunity in this advanced tech vehicle. The KraneShares fund holds potential to benefit patient holders, as Morgan Stanley forecasts the humanoid robotics market reaching $5 trillion by 2050.

Supporting a long-term perspective, humanoid robots remain costly today. Forecasts point to falling prices that will accelerate adoption. Two years earlier a unit carried a $200,000 price tag, comparable to home costs in select regions. Morgan Stanley anticipates a decline to $150,000 by 2028.

As seen previously with established AI equities, adoption curves and practical applications drive the humanoid robotics and physical AI theme. Individual stock selection proves difficult even for experienced professionals, which explains growing interest in this ETF.

ETF composition details

Robotics equities span multiple industries at the sector level. This ETF covers four sectors, with technology and industrial names accounting for roughly 78 percent of assets.

Humanoid robotics crosses borders, so the fund offers global rather than domestic exposure. The 28 percent allocation to Chinese equities, second only to U.S. holdings, matters because China leads in AI-enabled robotics including humanoids. No assurance exists that this leadership will continue indefinitely, underscoring the value of geographic breadth.

The KraneShares Global Humanoid Robotics ETF levies 0.69 percent annually, or $69 on a $10,000 position. This sits modestly above the 0.63 percent average for thematic ETFs.

Should you purchase shares in KraneShares Trust - KraneShares Global Humanoid And Embodied Intelligence Index ETF at present?

Before acquiring shares in KraneShares Trust - KraneShares Global Humanoid And Embodied Intelligence Index ETF, review the following:

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Todd Shriber holds no positions in mentioned equities. The Motley Fool maintains no positions in mentioned equities. The Motley Fool maintains a disclosure policy.

The perspectives expressed here belong to the author and may not align with those of Nasdaq, Inc.