What are technology ETFs?
Technology ETFs generally allow you to invest in a portfolio of companies within the technology and related sectors and typically aim to track the performance of an index.
Betashares provides a range of technology investment funds. Some of our technology ETFs offer broad exposure, holding a portfolio of global or regionally-based technology and related companies in the following categories:
Others offer exposure to a particular thematic, holding a portfolio of technology companies with a more specific focus, including:
How to use technology ETFs in a portfolio
Investors are typically attracted to technology stocks for their long-term growth potential.
Some tech ETFs aim to track a market cap-weighted index, for example, the Nasdaq-100 in the U.S., or the S&P/ASX All Technology Index in Australia. These ETFs offer broad tech-related exposure to technology stocks traded in a particular market and can be used as a ‘core technology’ allocation.
Other technology ETFs provide more focused exposure to a particular technology theme, such as cybersecurity or cloud computing.
Investors can use these more focused technology ETFs in their portfolio as a complement to a broad-based technology exposure or as a tactical allocation to a technology theme they are interested in.
What are the benefits of investing in technology ETFs?
Here are some reasons to consider a technology ETF as part of your portfolio:
- Growth potential – The technology sector has been one of the fastest-growing sectors globally.
- Diversification – Technology is under-represented on the Australian sharemarket, and so more specific exposure to technology and related sectors offers potential diversification benefits to portfolios that may be heavily weighted towards sectors such as financials and resources.
- Exposure to global giants – Market-leading technology stocks such as Amazon, Apple, and Meta are some of the largest companies in the world.
- Access to particular thematics – Funds such as our HACK, CLDD and RBTZ, ETFs offer diversified exposure to a particular technology sub-sector with the potential for strong growth.
Betashares technology ETF range
What are the risks of investing in technology ETFs?
There are risks associated with an investment in the technology ETFs, including market risk, technology sector risk, concentration risk, and currency risk, as well as emerging markets risk (for ASIA) and smaller companies risk (for RBTZ).
More information on risks and other features of each ETF can be found in the applicable Product Disclosure Statement.