3 fantastic ASX ETFs to buy after the market selloff

Let's see why these funds could be top buy-the-dip contenders.

| More on:

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

Key points
  • The recent market selloff has created an opportunity to buy high-quality Australian tech stocks at a discount, with the BetaShares Technology ETF seeing a rare 20% drop.
  • As sentiment pulled back sharply against speculative assets, the BetaShares Crypto Innovators ETF was hit hardest, sliding 34%, yet the long-term digital asset trend remains strong.
  • Despite only an 8% dip, the BetaShares Asia Technology Tigers ETF offers exposure to tech giants benefiting from major growth areas like AI and e-commerce.

The share market has been rattled this month, with interest rate uncertainty and renewed fears of an AI-driven bubble sparking a sharp pullback in technology stocks.

After a strong run in recent years, investors suddenly turned cautious, sending some of the market's most popular stocks into retreat.

But while volatility can feel uncomfortable, it also creates opportunity, especially when high-quality growth themes go on sale.

Here are three ASX ETFs that have been sold off but could now offer compelling value for long-term investors.

a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the Pilbara Minerals share price continue to fall

Image source: Getty Images

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The first ASX ETF that could be a buy after the selloff is the BetaShares S&P/ASX Australian Technology ETF. It has fallen around 20% from its recent high.

This fund tracks Australia's leading technology companies. This includes names like WiseTech Global Ltd (ASX: WTC), TechnologyOne Ltd (ASX: TNE), and Xero Ltd (ASX: XRO).

A 20% pullback doesn't happen often in a basket of high-quality tech names, and for patient investors, these corrections have historically been attractive entry points. Betashares recently named this fund as one to consider buying.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF could be another ASX ETF to buy after the selloff. It has been hit even harder, sliding 34% as risk appetite faded.

Concerns around central bank policy and a broader tech selloff pushed investors out of more speculative segments of the market, and crypto-related stocks were among the hardest hit.

It holds stocks such as Coinbase Global (NASDAQ: COIN), MicroStrategy (NASDAQ: MSTR), and major bitcoin miners, businesses that tend to rise and fall sharply with sentiment.

But despite the volatility, the long-term trend toward digital assets, blockchain adoption, and tokenised finance continues to build. When fear peaks, prices often disconnect from fundamentals, and that can create opportunities for long-term investors who can tolerate short-term swings.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF is a third ASX ETF that has pulled back recently. It has fallen 8% from its peak.

This fund invests in leading Asian tech giants, including heavyweights such as Tencent (SEHK: 700), Alibaba (NYSE: BABA), PDD Holdings (NASDAQ: PDD), and Baidu (NASDAQ: BIDU). These all have significant exposure to long-term growth themes including AI, cloud services, e-commerce, and advanced semiconductors.

And while an 8% pullback may not sound dramatic, in a sector with this level of long-term potential, every discount counts.

Motley Fool contributor James Mickleboro has positions in Betashares Capital - Asia Technology Tigers Etf, Technology One, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Baidu, Technology One, Tencent, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Alibaba Group and Coinbase Global. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sour end to the trading week this Friday.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Broker Notes

Guess which ASX stock could more than triple in value according to Morgans!

A 285% return could be on the cards here according to the broker.

Read more »

A happy youngster holds a giant bag of carrots at a supermarket fruit and vegie section, indicating savings made by buying in bulk.
Opinions

2 ASX shares I'd buy if the market fell another 10%

Pullbacks are great times to buy...

Read more »

A group of friends push their van up the road on an Australian road.
52-Week Lows

This ASX 200 stock just hit a multi-year low. Here's what's behind the slide

CAR Group shares hit a multi-year low as selling continues.

Read more »

A man sitting at his dining table looks at his laptop and ponders the share price.
Materials Shares

ASX lithium shares 'compelling' as top broker adjusts ratings

UBS predicts the global oil shock caused by the war in Iran will drive higher demand for electric vehicles.

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
IPOs

The newest ASX gold company makes a strong debut on the bourse, up more than 20%

Shareholders would have to be happy with this first day.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Dividend Investing

8% yield: The ASX is getting a new dividend stock that pays out monthly

This soon-to-be stock has averaged an 8% yield since 2016...

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

Brokers name 3 ASX shares to buy right now

Here's why brokers are feeling bullish about these three shares this week.

Read more »