The KraneShares Global Humanoid Robotics and Physical AI Index ETF (NASDAQ: KOID) is drawing significant investor attention as humanoid robots move closer to mainstream adoption.
While AI investing remains a dominant theme, many investors are already shifting focus toward humanoid robotics and physical AI as the next major technology frontier.
Humanoid robots are designed to work alongside humans, performing basic functions intended to enhance productivity across a range of industries.
Physical AI extends beyond humanoid robots to include various autonomous systems, such as self-driving vehicles and surgical robots, broadening the investment opportunity considerably.
KOID tracks the MerQube Global Humanoid and Embodied Intelligence index and holds the distinction of being the first ETF of its kind to trade in the United States.
The fund turns one year old on June 4 and has already accumulated $241 million in assets under management, reflecting strong early demand from investors.
Year-to-date inflows of $89 million have contributed to that total, signaling continued confidence in the humanoid robotics theme heading deeper into 2026.
Morgan Stanley estimates the humanoid robotics market could reach $5 trillion by 2050, providing a long-term growth runway that underpins the investment case for KOID.
Humanoid robots currently carry steep price tags, with a single unit costing around $200,000 two years ago, but Morgan Stanley projects that price could fall to $150,000 by 2028.
Declining costs are expected to drive increased adoption over time, which could meaningfully expand the addressable market for companies operating in this space.
At the sector level, technology and industrial stocks together account for approximately 78% of the ETF’s portfolio, reflecting the dual nature of the humanoid robotics industry.
The fund maintains a global focus, with Chinese stocks representing a 28% allocation, second only to U.S. equities, recognizing China’s leading position in AI-powered robotics.
Geographic diversity within the fund is considered an advantage, given that no single country is guaranteed to maintain its current lead in humanoid robotics development.
KOID carries an annual expense ratio of 0.69%, or $69 on a $10,000 investment, which sits slightly above the 0.63% average for thematic ETFs.
For investors seeking targeted exposure to humanoid robotics without the complexity of individual stock selection, KOID presents a diversified and thematically focused option worth considering.
