Key Highlights

  • The fund is about $599.79 million in size and holds 43 companies.
  • Technology stocks make up 59.53% of the portfolio, with communication services at 18.26% and healthcare at 11.18%.
  • The management fee is 0.48%, and the listed annual Yield is 1.80%.
  • The top ten holdings represent 73.22% of the fund, led by Computershare and Xero.

Betashares S&P/ASX Australian Technology ETF (ASX:ATEC) tracks the S&P/ASX All Technology Index, giving investors a concentrated exposure to Australian technology and closely related companies. The units were listed at $23.08, the fund is about $599.79 million in size, and the management fee is 0.48%. Because the portfolio is narrow, its unit price is likely to move more sharply than a broad market fund.

Ticker

ASX:ATEC

Listed price

$23.08

Fund size

$599.79 million

Management fee

0.48%

Listed annual yield

1.80%

Benchmark

S&P/ASX All Technology TR AUD

Holdings

43 companies

Sector and company mix

Technology makes up 59.53% of the fund, followed by communication services at 18.26%, healthcare at 11.18% and financial services at 10.96%. Almost all of the portfolio is in shares, at 99.05%. Australia accounts for 92.93%, with the United States at 6.76%.

The largest holdings are Computershare at 10.52%, Xero at 8.05%, Pro Medicus at 7.96%, Car Group at 7.43%, Codan at 7.35%, TechnologyOne at 7.29%, NEXTDC at 7.22%, REA Group at 6.87%, WiseTech Global at 6.22% and Megaport at 4.27%. The top ten make up 73.22% of the portfolio.

Income and costs

The management fee is 0.48%, which is higher than the fee on broad market index funds. The listed annual yield is 1.80%, lower than most broad Equity funds, because many technology companies reinvest Earnings rather than paying large dividends.

Investors paying a higher fee for focused exposure should consider whether the sector tilt fits their existing holdings.

Risks to weigh

The fund's biggest risk is its concentration. Technology shares can fall sharply when sentiment shifts or when growth expectations are revised, and a small number of companies account for most of the portfolio. Holding 43 companies spreads that risk less than a broad index would.

Technology stocks can also be sensitive to interest rates, since their value often depends on earnings expected far in the future. Investors should weigh those swings against the growth potential the fund offers.

Final Word

The Betashares S&P/ASX Australian Technology ETF offers a focused route into Australian technology and related companies, at a higher fee and a lower yield than broad equity funds. Its unit price will tend to move more sharply than the wider market, and the concentrated holdings are the main Factor to weigh.