ASX tech shares have been on fire in 2020. The recently launched S&P/ASX All Technology Index (ASX: XTX) has been climbing higher after adding $33 billion of value in just three months.
Here’s how some of the top tech shares within that index have performed in the year to date.
Which shares are in the index?
The total market capitalisation of the index is over $140 billion with 28 listed tech ‘unicorns’, those with above $1 billion market cap, as at 3 September 2020. The minimum market cap requirement for inclusion currently sits at $120 million.
In terms of country of origin, there are 48 from Australia with the United States (5), New Zealand (3), Ireland (1) and Israel (1) also represented.
Unsurprisingly, the WAAAX technology shares lead the list with all 5 companies making the top 10 by market capitalisation.
How have the top shares performed?
The list of constituents reads a bit like a who’s who of ASX outperformers. The Appen and Afterpay share prices have rocketed 62.7% and 213.7% year to date, respectively.
Apart from Afterpay, Appen and the like, there are some more loosely-defined ASX tech shares included.
An example is REA Group Limited (ASX: REA), which has seen its share price rocket 17.2% higher in 2020. Real estate listings have been strong despite the coronavirus pandemic which has helped the media organisation maintain its earnings.
Fellow ASX tech share SEEK Limited (ASX: SEK) has been under pressure but seen a rebound thanks to the Federal Budget. Last Tuesday’s budget showed strong support to boost employment which is good news for Seek’s FY21 earnings.
ASX tech shares have been on fire in 2020 as investors have looked for growth opportunities. That strong momentum could be good news for shareholders looking to ride market ups and downs in 2021.
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Returns as of 6th October 2020
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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