What are the best technology ETFs in Australia?

Decide which are the best tech ETFs on the ASX

Data as of 27 July 2023. Source: Stake, Google Finance, ASX.

*The list of funds mentioned is ranked by assets under management (AUM). When deciding what ETFs to feature, we analyse the financials, recent news, the state of the industry, and whether or not they are actively traded on Stake.

Discover the top technology ETFs to add to your watchlist

1. BetaShares NASDAQ 100 ETF ($NDQ)

Assets under management (AUM):

ETF price (as of 27/07/2023): $34.84

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 78% / 22%

The BetaShares NASDAQ 100 ETF ($NDQ) tracks the performance of the NASDAQ-100 Index, which includes the 100 largest non-financial companies listed on the NASDAQ Stock Market. $NDQ offers exposure to leading technology stocks like Apple ($AAPL), Amazon ($AMZN), Microsoft ($MSFT), and Google's parent company Alphabet ($GOOG), as well as plenty of other companies developing tech infrastructure as a service, cloud computing software, online retail and other areas that are key for the global technology sector.

This ETF primarily invests in innovative technology companies, giving investors access to some of the most influential and high-growth firms in the global tech sector.

🆚 Compare NDQ vs FANG stock comparison→

2. Global X NASDAQ 100 Covered Call ETF ($QYLD)

Assets under management (AUM): $1.3b

ETF price (as of 27/07/2023): $11.35

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): NA

The Global X NASDAQ 100 Covered Call ETF ($QYLD) invests in the NASDAQ-100 Index constituents while also employing a covered call strategy. The ETF sells call options on the NASDAQ-100 Index to generate additional income, potentially reducing volatility and enhancing returns. $QYLD suits income-seeking investors, as it provides investors with some regular income through the premiums collected from selling covered call options.

💡Related: Find Nasdaq ETFs to add to your watchlist→

3. Global X Battery Tech & Lithium ETF ($ACDC)

Assets under management (AUM): $642m

ETF price (as of 27/07/2023): $102.73

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 73% / 27% 

The Global X Battery Tech & Lithium ETF ($ACDC) is designed to provide exposure to companies involved in the development and production of battery technologies, including lithium miners and producers. $ACDC aims to capitalise on the growing demand for electric vehicles and renewable energy storage solutions, offering investors an opportunity to invest in the global shift towards sustainable energy and battery technology development. This ETF holds some of the ASX lithium stocks mentioned in our previous guide on the sector.

4. BetaShares Asia Technology Tigers ETF ($ASIA)

Assets under management (AUM): $468m

ETF price (as of 27/07/2023): $7.64

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 64% / 36%

The BetaShares Asia Technology Tigers ETF ($ASIA) is an exchange-traded fund that seeks to track the performance of the Solactive Asia Ex-Japan Technology & Internet Tigers Index. $ASIA focuses on providing investors exposure to some of the most prominent and high-growth technology companies within the Asian region, excluding Japanese firms.

The ETF's portfolio includes leading technology companies listed in Asia, such as Tencent ($TCEHY), Alibaba ($BABA), Baidu ($BIDU), and other innovative companies at the forefront of the technology and internet sectors in the region. By investing in $ASIA, individuals can tap into the dynamic and rapidly expanding tech landscape in Asia, benefiting from the region's thriving technology-driven economies and potential for significant growth opportunities.

5. Global X Morningstar Global Technology ETF ($TECH)

Assets under management (AUM): $330m

ETF price (as of 27/07/2023): $93.89

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 53% / 47%

The Global X Morningstar Global Technology ETF ($TECH) seeks to track the Morningstar Developed Markets Technology Moat Focus Index. This index includes technology companies that have a competitive advantage or "moats" that help protect their businesses from competitors. $TECH aims to invest in high-quality tech firms with durable economic moats, providing investors with diversified exposure to established and resilient technology companies.

6. Global X FANG+ ETF ($FANG)

Assets under management (AUM): $320m

ETF price (as of 27/07/2023): $19.03

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 73% / 27%

Global X FANG+ ETF ($FANG) is an exchange-traded fund that seeks to replicate the performance of the NYSE® FANG+™ Index. The index comprises highly influential technology and tech-enabled companies, popularly known as the "FAANG" stocks (Facebook ($META), Apple ($AAPL), Amazon ($AMZN), Netflix ($NFLX), and Alphabet's Google ($GOOG)), alongside other prominent technology giants like Tesla ($TSLA), and NVIDIA ($NVDA) that are some of this ETF’s underlying holdings.

The fund aims to offer investors exposure to the leading innovators in the tech and digital economy sectors, known for their strong growth potential and disruptive influence on various industries. By investing in $FANG, individuals can participate in the performance of these high-growth companies driving significant advancements in the technology landscape.

7. BetaShares NASDAQ 100 ETF - Currency Hedged ($HNDQ)

Assets under management (AUM): $278m

ETF price (as of 27/07/2023): $32.89

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 65% / 35%

Similar to $NDQ, the BetaShares NASDAQ 100 ETF - Currency Hedged ($HNDQ) also tracks the NASDAQ-100 Index. However, this ETF uses currency hedging strategies to mitigate the impact of currency fluctuations between the AUD and the USD. By hedging against currency risks, $HNDQ aims to provide Australian investors with a more stable return in Australian dollars.

8. Global X ROBO Global Robotics & Automation ETF ($ROBO)

Assets under management (AUM): $250m

ETF price (as of 27/07/2023): $75.90

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 66% / 34%

The BetaShares Global Robotics and Artificial Intelligence ETF ($ROBO) is an exchange-traded fund designed to replicate the performance of the ROBO Global Robotics and Automation Index. $ROBO focuses on providing investors with a focused exposure to companies at the forefront of the robotics and artificial intelligence (AI) revolution.

The ETF's portfolio includes a diverse range of firms involved in robotics, automation, AI development, and related technologies, spanning various industries worldwide. By investing in $ROBO, individuals can participate in the transformative advancements shaping industries such as manufacturing, healthcare, transportation, and beyond.

🆚 Compare ROBO vs RBTZ stock comparison→

9. BetaShares Global Robotics and Artificial Intelligence ETF ($RBTZ)

Assets under management (AUM): $205m

ETF price (as of 27/07/2023): $13.09

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 78% / 22%

Like $ROBO, the BetaShares Global Robotics and Artificial Intelligence ETF ($RBTZ) focuses on companies whose principal business is robotics and artificial intelligence (AI) development and adoption. $RBTZ invests in firms that design, manufacture, and implement robotics and AI technologies across various industries. This ETF offers investors an opportunity to participate in the ongoing technological advancements in automation and AI.

10. BetaShares S&P/ASX Australian Technology ETF ($ATEC)

Assets under management (AUM): $193m

ETF price (as of 27/07/2023): $19.97

Stake Platform Bought / Sold (1 Jan 2023 - 27 Jul 2023): 65% / 35% The BetaShares S&P/ASX Australian Technology ETF ($ATEC) is focused on providing exposure to the technology sector within the Australian market. $ATEC tracks the performance of the S&P/ASX All Technology Index, comprising companies engaged in software, hardware, IT services, and other tech-related industries in Australia. By investing in $ATEC, investors can participate in the growth potential of the Australian tech sector.

How to invest in technology ETFs?

Want to start buying tech ETFs but not sure how? Follow the steps below to invest in Australia’s biggest tech ETFs.

1. Find an online investing platform

To buy shares in Australia, you'll need to sign up with an investment platform that has access to the ASX. There are a number of share investing platforms in Australia, of which Stake is one.

2. Fund your account

Complete an application with your personal and financial details. Fund your investment account with a bank transfer, debit card or even Apple/Google Pay.

3. Search for the desired ETF

Find the ETF by company name or ticker symbol. Do your own research to ensure it is the right investment product for your own circumstances.

4. Choose an order type and buy the ETF

Buy on any trading day with a market order or use a limit order to delay your purchase of the selected ETF shares until it reaches your desired stock price. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.

5. Monitor your investment

Optimise your portfolio by tracking how your stock and the business perform with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your stock.

What is the best-performing tech ETF in Australia?

The best-performing tech ETF in Australia is Global X FANG+ ETF, surging +77.68% YTD (as of 27 July 2023) as the largest American tech stocks by market capitalisation were some of the biggest beneficiaries of the recent market trends.

Pros of investing in technology ETFs

• Potential for high growth: Technology companies often have significant growth prospects due to innovations, market disruption, and advancements in their industries.
• Diversification: Most technology ETFs typically hold a basket of technology stocks, providing investors with diversification across various companies in the sector.
• Exposure to cutting-edge industries: Investing in technology ETFs allows individuals to participate in emerging industries like AI, robotics, cybersecurity, and renewable energy.
• Easy access: ETFs are traded on stock exchanges, making them easily accessible to investors through their brokerage accounts.
• Lower risk than individual stocks: Diversification within the ETF helps reduce the impact of adverse events affecting a single company, lowering overall investment risk.

Cons of investing in technology ETFs

• Volatility: Technology stocks can be highly volatile, subject to rapid price swings due to market sentiment, news, or industry-specific factors.
• Sector-specific risks: Concentration in the technology sector makes these ETFs more susceptible to risks affecting technology companies as a whole.
• Performance tied to industry performance: The performance of technology ETFs heavily relies on the growth and success of the technology sector.
• Market dependency: Technology ETFs are influenced by broader market trends and macroeconomic conditions, which can impact their returns.
• Management fees: Like all ETFs, technology ETFs charge management fees, which can impact overall returns over time.

More resources:

✅ List of the top ASX data centre stocks→

✅ How to buy Nvidia shares→

✅ Are these the best ETFs on the ASX?→

This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.