Think big tech has bottomed? Buy this ASX ETF

If US tech booms, then so will this ETF…

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As most investors would be acutely aware, the past six weeks or so have been an exceptionally volatile time for investors. Between 14 February and 13 March, the S&P/ASX 200 Index (ASX: XJO) dropped by a painful 9.4%. Over in the United States, the S&P 500 had a similar experience, led by the big tech stocks.

Yep, between 19 February and 13 March, the S&P 500 fell by 10.13%.

Over in the US, the big tech stocks like Apple, Microsoft, NVIDIA, Tesla and Amazon command the largest weighting on the stock market, just as the big four banks do here on the ASX.

Given this fall in the S&P 500, it will come as no surprise to hear that the 'magnificent seven' tech stocks had a rather nasty few weeks, too. For example, Apple stock tanked by more than 15% between 25 February and 13 March. Nvidia fared even worse, crashing 24% between 20 February and 10 March.

Over a similar period, Tesla shares plunged more than 38%, although there were probably other factors at play there.

More recent weeks have been kinder to some of the big tech stocks over the States.

But whether we have truly found a bottom and turned a corner remains to be seen. After all, we are set for a fairly dramatic week on global markets this week with President Donald Trump's tariff 'liberation day' fast approaching.

However, if an investor reckons we've hit or already seen a bottom in this big tech correction, there is one ASX ETF that might be a top buy.

dice on top of piles of coins spelling the word nasdaq

Image source: Getty Images

One ASX ETF to buy if big tech has bottomed

That ASX ETF is the Global X FANG+ ETF (ASX: FANG). This exchange-traded fund (ETF) is essentially a pure-play bet on the biggest US tech stocks. Unlike most ASX ETFs, it holds a very small portfolio, with only ten underlying holdings at present. Those ten underlying holdings consist of six of the magnificent seven stocks (Tesla misses out), in addition to Netflix, Crowdstrike Holdings, ServiceNow and Broadcom.

These ten shares are given an equal weighting of approximately 10% each.

As such, if an ASX investor is looking for a quick and easy way to invest in the biggest tech stocks on the US markets, this ETF is a prime candidate. On an on-going basis, it is more expensive owning this ETF than the individual stocks, with FANG charging a management fee of 0.35% per annum.

As one would expect, FANG has also had a volatile few weeks. Between 18 February and 11 March, FANG units cratered by 17.22%. Those same units are still 17.5% down from where they were on 18 February.

Let's see how the rest of 2025 treats the Global X FANG+ ETF. If we have indeed seen a bottom for big tech over in the US, this will be an interesting fund to watch.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, ServiceNow, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, and ServiceNow. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A group of six work colleagues gather around a computer in an office situation and discuss something on the screen as one man points and others look on with interest
ETFs

Invest in the future with these exciting ASX ETFs

Artificial intelligence and electric vehicles are covered by these funds.

Read more »

ETF written in white and in shopping baskets.
ETFs

2 ASX ETFs to buy: expert

Andrew Wielandt of DP Wealth Advisory offers his recommendations on ASX ETFs.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
ETFs

4 ASX ETFs to buy for the mining supercycle

Wanting exposure to the mining boom? Here's how you could do it according to Bell Potter.

Read more »

A little girl stands on a chair and reaches really, really high with her hand, in front of a yellow background.
ETFs

3 high-quality ASX ETFs at 52-week highs I'd still buy

I would focus less on the recent high and more on whether the assets inside the ETF can keep becoming…

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
ETFs

3 ASX ETFs that could help build long-term wealth

These funds could deliver good returns over the long term. Here's why.

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
ETFs

3 quality ASX ETFs to buy and hold until 2036

These funds could be well-placed to generate strong returns in the future.

Read more »

Man putting in a coin in a coin jar with piles of coins next to it.
ETFs

New to ASX ETFs? These 4 products could be a good start

ETF investing has become hugely popular.

Read more »

A smiling young couple sit with a finance professional at a computer, looking at the screen.
ETFs

3 Betashares ETFs that I'd buy with $2,500

I would want a mix of growth, quality, and long-term relevance from a small group of Betashares ETFs.

Read more »