Last week many investors enjoyed a long awaited rebound for ASX technology shares.
ASX 200 tech shares rose 12.96% while the benchmark S&P/ASX 200 Index (ASX: XJO) dipped 0.15%.
Tech shares had been suffering from plenty of headwinds in 2026, including negative sentiment due to AI disruption fears.
The challenge facing investors now is identifying which companies are realistically in danger of having core products and services replaced, and which are set to benefit from AI integration.
However these fears appear to be disappearing as markets simply can't ignore the discount on offer for technology shares.
As The Motley Fool's Bronwyn Allen reported last week, these fears drove a near halving in the value of the S&P/ASX 200 Information Technology Index (ASX: XIJ) in just seven months.
Between 29 August and 30 March, the tech index experienced an extraordinary 48% sell-off.
If we have reached rock bottom of this current cycle, much of the sector remains undervalued, even after last week's rebound.
Here are two ASX ETFs that could be worth targeting.
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Betashares S&P ASX Australian Technology ETF (ASX: ATEC)
This ASX ETF is the only pure-play Australian tech focussed fund.
It provides 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.
In the last week it has risen almost 12%, however remains down 14% year to date.
At the time of writing it includes 45 holdings, with its largest weighting being towards Xero Ltd (ASX: XRO) and Computershare Ltd (ASX: CPU) which combine for roughly 20% of the fund.
BetaShares Australian Ex-20 Portfolio Diversifier ETF (ASX: EX20)
Australia's benchmark index is heavily concentrated on big banks and miners.
In fact, according to VanEck, the top 5 securities account for 33% of the S&P/ASX 200 Index.
This means traditional, ASX 200 tracking ASX ETFs will be heavily skewed to these equities.
That's what makes the EX20 fund intriguing.
It eliminates this over-saturation by excluding the largest 20 holdings listed on the ASX.
What's left is the 180 largest stocks listed on the ASX, after excluding the 20 largest, based on their market capitalisation.
No individual holding makes up more than 3.4% of the total fund.
Subsequently, there is a higher exposure to tech shares than traditional ASX 200 funds.
For the to date, the fund remains down just over 3%.
However, it has begun to rally, rising 20% since late March.
This fund may appeal to investors looking for tech exposure, while still spreading risk across a range of sectors.
