It's been a very unpleasant hump day indeed for ASX shares this Wednesday so far. After retreating every day this week so far, the S&P/ASX 200 Index (ASX: XJO) looks like it is on track to make it three for three, with the index currently nursing a hefty 0.86% loss for the session.
But let's talk about four popular ASX tech exchange-traded funds (ETFs) that are going the other way today.
First up is a popular ASX tech ETF in the BetaShares Nasdaq 100 ETF (ASX: NDQ). NDQ units have now dipped into red territory, down 0.04% for the day thus far at $47.87 each. However, this morning, we saw those same units push into new record territory, minting a fresh new all-time high of $47.97.
Then we have the Global X FANG+ ETF (ASX: FANG). FANG units are comfortably in green territory at present, enjoying a 0.99% rise to $29.61 each. But earlier this morning, those units pushed as high as $29.72, also a new record high for this fund.
It's been a similar story for the BetaShares Global Cybersecurity ETF (ASX: HACK). HACK units are also currently in the green, up 0.6% at $13.45 each. But earlier in the session, those units went as high as $13.49, which, you guessed it, is a new record high for this ASX tech ETF.
Finally, let's discuss the Global X Morningstar Global Technology ETF (ASX: TECH). TECH units are having a blinder today. This fund is currently enjoying a 1.14% boost up to $110.35 a unit. However, this morning saw this ETF push as high as $111.35. Once more, that's a new all-time record for the Global Technology ETF.
Why are these ASX tech ETFs hitting new highs today?
It might seem strange that these ETFs are all hitting new records on such a nasty day for the ASX 200. But there is a simple explanation: None of these ASX tech ETFs actually track ASX shares or the Australian markets at all.
Starting with NDQ, this EASX tech ETF is an index fund that tracks the American NASDAQ-100 Index (NASDAQ: NDX). This index reflects the value of 100 of the largest stocks listed on the US Nasdaq stock exchange, which houses almost every major US tech company from Apple, Alphabet, and Microsoft to PayPal, Airbnb, and Netflix.
With the Nasdaq 100 sitting very close to its all-time highs and the Australian dollar falling in value against the US dollar (raising the value of US assets in our local currency), it's not too surprising to see this ETF where it is today.
It's a very similar story with the FANG+ ETF. This ASX tech ETF is not an index fund, holding 10 top US shares. But these also happen to all be tech stocks, consisting of the 'magnificent seven' tech giants like Amazon, Tesla and NVIDIA, as well as CrowdStrike, ServiceNow and Broadcom. As such, FANG will be benefitting from the same tailwinds as NDQ today.
The same can also be said of the Global X Morningstar Global Technology ETF. This fund holds a more diversified portfolio of global tech stocks, including Salesforce, Lyft, Block and Uber. Spurred by the performance of the largest tech stocks that we've already discussed, the entire US tech sector is on a roll right now, so again, it's not too shocking to see this ASX tech ETF get another push from investors this Wednesday.
Cybersecurity shares aren't left out
Finally, we see much of the same catalysts influencing the Betasahres Global Cybersecurity ETF today. This ETF holds a portfolio of global companies that are all big players in the cybersecurity market.
While HACK holds stocks from a range of different countries, American companies still dominate its holdings at around 80% of the HACK portfolio. Some of this ASX tech ETF's top holdings include CrowdStrike, Palo Alto Networks and Fortinet.
As such, it's clear that the same tailwinds that are lifting the above ETFs are at play with this one, too.
