BetaShares has launched the first exchange-traded fund (ETF) focused on providing access to Australia’s technology sector.
The new ETF, which aims to track the Australian Securities Exchange (ASX) All Technology Index, will provide exposure to ASX-listed companies across technology-related market segments, including information technology, consumer electronics, online retail and medical technology.
BetaShares chief executive Alex Vynokur said: “We are excited to be able to give Australian investors the chance to invest in a diversified portfolio of ASX-listed technology companies. Technology has been one of the standout industry sectors globally and Australia’s dynamic technology sector has been growing rapidly.
“Our new fund will deliver a simple, cost-effective way to get exposure to the exciting opportunities this sector offers while additionally providing important sector diversification benefits that many investors’ portfolios may lack.”
The All Technology Index, which the new ETF aims to track, has returned 53.8 per cent a year since the beginning of 2019, compared to a 26.5 per cent return for the ASX 200 Index and a 51.8 per cent return for the Nasdaq 100 Index.
The technology sector represented less than 5 per cent of the ASX 200, despite a general consensus Australia’s future was “very much tied to” technology and innovation, BetaShares stated.
“[The new ETF] will provide exposure to that innovative and unique sector of our market, which is poised to continue growing in its significance,” it added.
ASX listings and issuer services executive general manager Max Cunningham said: “ASX welcomes the announcement by BetaShares that it’s launching a new ETF off the back of the S&P/ASX All Technology Index.
“The launch of the BetaShares ETF validates the growing market interest in technology stocks. It will enhance the profile and understanding of listed technology companies in Australia and increase opportunities for investors.”
In December last year, BetaShares launched a suite of diversified ETFs on the ASX, promising the lowest management fees among diversified ETFs available in Australia.