An emerging story this year has been the heavy sell-off of ASX technology shares.
Global risk-off sentiment and a renewed reassessment of the technology sector have weighed heavily on growth-oriented names.
A major driver has been investor concerns about artificial intelligence (AI).
Rather than being a clear catalyst for growth, fears that rapid AI advances could disrupt traditional software business models have prompted revaluation and selling in software and SaaS stocks, with markets questioning future demand and pricing power.
In fact the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 43% over the past six months.
Big companies that have been largely sold off in 2026 include:
- TechnologyOne Ltd (ASX: TNE) is down 22% YTD
- Xero Ltd (ASX: XRO) is down 30%
- Life360 Inc (ASX: 360) has fallen 28%
- SiteMinder Ltd (ASX: SDR) has dropped by 38.5%.
- WiseTech Global Ltd (ASX: WTC) is 31% lower YTD.
Image source: Getty Images
What are experts saying?
It's very reasonable that investors don't want to tie themselves to a sinking ship.
But is the technology industry really going down?
Bear markets don't last forever, and many experts are reinforcing this panic isn't being driven by sound logic.
Research from J.P. Morgan Private Bank describes this as "broken logic" and says, "the market is selling indiscriminately."
Analysis from Wilsons Advisory also suggested the doom and gloom around these stocks is overblown.
Whilst holders of these stocks might need an iron will to endure these difficult times, prospective buyers should be rejoicing in the opportunity.
It can be challenging to sift through these companies and decide on a case-by-case basis if the outlook is positive, and core business a safe choice.
One strategy to take advantage of this crash is to consider technology exposed ASX ETFs.
Here are a few to consider.
Buyers should be aware that these funds could certainly keep falling in the near term before things get better.
Betashares S&P ASX Australian Technology ETF (ASX: ATEC)
Unsurprisingly, this fund is down roughly 20% year to date.
It includes exposure to leading ASX-listed companies in a range of tech-related market segments such as information technology, consumer electronics, online retail and medical technology.
Global X Morningstar Global Technology ETF (ASX: TECH)
This fund focuses on global technology companies rather than just ones here in Australia.
It targets companies positioned to benefit from the increased adoption of technology.
This including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.
It's important to mention this might not suit investors who are bearish on the future of SaaS companies due to AI influence.
Global X FANG+ ETF (ASX: FANG)
This ASX ETF is focussed on companies at the leading edge of next-generation technology that includes household names and newcomers.
It only includes 10 underlying holdings that are targeted for global tech/growth potential.
It is down 16.5% year to date.
