I reckon an investor can find some top technology ETFs on Australia’s ASX. To help make your search easier, below I’ve listed my top three tech ETFs. I’ve got them at the top of my 2021 watchlist.
Before we get into it, this video explains ‘what is an ETF?‘.
#1 – Betashares Asia Technology Tigers ETF (ASX: ASIA)
The ASIA ETF is about getting exposure to many of the biggest tech players in Asia, outside of Japan. Asia was booming before COVID-19 and it’s one of the regions doing really well with keeping the health and economic effects of the pandemic under control. In some ways, Asia’s citizens are more technological than most of the world, especially when we consider how much is done online through the major e-commerce platforms.
The ASIA ETF has an annual management fee of 0.67%. Its largest holdings are: Samsung, Taiwan Semiconductor Manufacturing, Tencent, Meituan and Alibaba. Its shorter term returns have been extraordinary. At 30 November 2020, over the previous year its net return was 61.2% and since inception in September 2018 its net return was 32.3%.
See our ASIA ETF review.
#2 – VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
The EPSO ETF is about giving exposure to gaming, specifically eSports.
The eSports sector has been growing for a long time and the COVID-19 conditions accelerated it further as millions of people found new things to do at home. Keep in mind, people have been playing electronic games for decades, so this isn’t new. However, the growth has accelerated and I don’t think that’s going to change any time soon.
The ESPO ETF has an annual management fee of 0.55%. Its largest holdings are: Tencent, Nvidia, Advanced Micro Devices, Sea, Nintendo, Bandai Namco, Activision Blizzard and Take-Two Interactive Software.
The ESPO ETF is new but the index it tracks has done very well – at 30 September 2020 its previous 12 months of returns were 68.75% and its average return per annum was 36.2% over the past five years.
See our ESPO ETF review.
#3 – Betashares Nasdaq 100 ETF (ASX: NDQ)
The NDQ ETF is about giving exposure to US shares listed on the NASDAQ. Lots of the huge tech businesses are listed on the NASDAQ like Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, Nvidia, PayPal and Adobe. These are the biggest holdings in the ETF and they are the ones coming out with society-changing products.
NDQ has an annual management fee of 0.48%. As at 30 November 2020, over the previous 12 months NDQ had returned 34.4% and over the past five years, its net return per annum was 21.5%.
