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It's indisputable that we're in an era of technology and our technological capabilities are exponentially increasing.

Fast-growing and already robust, Australia's tech sector is worth 8.5 percent of the country’s total GDP, or AU$167 billion. Furthermore, as of 2024, Australia ranked 15th in the world for digital competitiveness. Given the scale of the tech market in Australia and globally, ETFs can be a good choice for investors.

For any investor, the tech sector may be a desirable investment opportunity, and ETFs can be a safer way to get into an industry. For those unfamiliar, an ETF, or exchange-traded fund, is a basket of securities that is traded like a stock on an exchange and comes in many different types — market ETFs, foreign market ETFs, commodity ETFs and so on. Advantages include lower expense ratios, diversification and fewer broker commissions. One disadvantage is a low level of liquidity.

Here the Investing News Network looks at ASX technology ETFs for those interested in investing in the digital future.

How to invest in ASX technology ETFs

As they're traded on exchanges, tech ETFs in Australia can be purchased in the same manner as any ASX equity. Some options include purchasing them through an ASX participant broker or through a digital trading platform. The ASX website offers tools for finding a broker that matches your needs.

Investing in tech ETFs offer diversity compared to investing in individual tech stocks. As mentioned, ETFs are a basket of securities, which means they can hold multiple stocks in a sector or may even cover more than one industry. Additionally, some ASX tech ETFs offer exposure to international tech shares that aren't available to Australian investors normally.

Beyond diversity, one of the main advantages of an ETF is the ability to buy and sell at any time during the trading day. That's in contrast to mutual funds, which trade at the end of the day.

One thing to watch for when investing in ETFs is portfolio duplication. If your portfolio is diverse, make sure you aren't going to create a redundancy with an ETF — you can do this by checking your total exposure in a given sector, not just the exposure given by the ETF.

What are the biggest ASX technology ETFs?

Below, we’ll list some of the biggest ETFs in the Australian tech sector. These ASX tech ETFs funds are listed in order of market capitalisation, with data gathered using TradingView’s stock screener on March 13, 2025.

1. Betashares NASDAQ 100 ETF (ASX:NDQ)

Assets under management: AU$5.69 billion
Yearly performance: 9.77 percent
Management fee: 0.48 percent

The Betashares NASDAQ 100 ETF aims to track the performance of the Nasdaq 100 Index (INDEXNASDAQ:NDX), which includes global leaders in the tech sector, before fees and expenses. This fund devotes 41.03 percent of its holdings to electronic technology, with the next-highest category, technology services, coming in just behind it 39.8 percent.

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2. Betashares Global Cybersecurity ETF (ASX:HACK)

Assets under management: AU$1.15 billion
Yearly performance: 13.83 percent
Management fee: 0.67 percent

The Betashares Global Cybersecurity ETF specialises in cybersecurity, a market that protects and enhances other tech companies' offerings. As technologies advance, so do threats, making these services necessary for businesses and individuals.

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The ETF's holdings are almost fully in the technology services sector, with 71.14 percent falling under that umbrella, and most of the remainder is under the electronic technology umbrella. More specifically, 45.3 percent of its holdings are focused on systems software.

3. Global X Fang+ ETF (ASX:FANG)

Assets under management: AU$962.38 million
Yearly performance: 19.18 percent
Management fee: 0.35 percent

The Global X Fang+ ETF tracks the NYSE FANG+ Index (INDEXNASDAQ:NYFANG) to provide investors global exposure to leading publicly traded companies in next-generation technologies, including tech giants and emerging growth stocks.

This fund dedicates 60.53 percent of its holdings to technology services, with the next-highest category, electronic technology, ranking at 28.06 percent.

4. Betashares Asia Technology Tigers (ASX:ASIA)

Assets under management: AU$649.37 million
Yearly performance: 30.62 percent
Management fee: 0.67 percent

The Betashares Asia Technology Tigers has is wholly focused on technology companies in Asia ex Japan. Stocks in China and Taiwan both make up about 70.8 percent of the ETF's holdings, with South Korea and India making up the majority of the remainder. As many of the ASX ETFs on this offer exposure to US tech stocks, this ETF can provide some global diversification.

As for the types of companies held in this tech ETF, 48.28 percent are categorized as electronic technology, 30.26 percent as technology services and 20.21 percent as retail trade.

5. Global X Morningstar Global Technology ETF (ASX:TECH)

Assets under management: AU$362.2 million
Yearly performance: -3.43 percent
Management fee: 0.45 percent

Global X's Morningstar Global Technology ETF offers exposure to "companies positioned to benefit from the increased adoption of technology." The majority of its holdings, 69.9 percent, are in the information technology sector.

This global ETF has holdings in North America, Europe and Asia. On the country level, the lion's share of its holdings are US stocks at around 71 percent, and the next highest countries by holdings are the Netherlands at 12.6 percent and Japan at 6.8 percent.

6. Betashares S&P/ASX Australian Technology ETF (ASX:ATEC)

Assets under management: AU$292.34 million
Yearly performance: 11.38 percent
Management fee: 0.48 percent

The Betashares S&P/ASX Australian Technology ETF tracks the performance of the S&P/ASX All Technology Index (INDEXASX:XTX) before fees and expenses. ATEC is the only ASX ETF on this list that focuses on Australian tech shares, with nearly 93 percent of its holdings located in the country.

The majority of the fund's holdings, 72 percent, are in the technology services sector, followed by health services at 9.68 percent and commercial services at 8.75 percent.

This is an updated version of an article first published by the Investing News Network in 2022.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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FinSmart team

FinSmart is your go-to platform for "smart finance", where we break down complex financial topics simply and clearly. We help you navigate the financial world with confidence

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