Australian tech was heavily sold off to start the year. This was led by investors dumping shares in software as a service (SaaS) companies.
From January until late March, the S&P/ASX 200 Info Tech Index (ASX: XIJ) fell 30%.
This was driven by AI replacement fears.
AI can now perform functions like coding, data analysis, customer service, and content generation more cheaply and effectively.
This directly overlaps with what many SaaS companies charge subscriptions for, and pushed many investors into fear-driven selling.
But since late March, Aussie tech shares have been rebounding.
A new report from Betashares has reinforced why the initial sell-off may have been overblown and how investors can profit.
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Small and mighty
Tom Wickenden, Investment Strategist at Betashares, said with just a 4% weight in the S&P/ASX 300 Index (ASX: 300), Australia's technology companies punch above their weight in terms of investor interest.
A small but dynamic part of Australia's equity market, technology companies have delivered periods of significant outperformance against the broader Australian market and global technology peers, alongside sharp drawdowns.
He reinforced that the sector is no stranger to volatility, and that current investor uncertainty is not misplaced.
Disruption risk is a permanent feature of technology investing. But disruption also presents opportunity, for incumbents to integrate and adapt and new entrants to grow. In a sector as dynamic and small as Australian technology, this points to the benefits of an indexed ETF approach.
Investors flock to Aussie Tech
According to the report, despite the current drawdown – and what some have dubbed a global 'SaaSpocalypse' in software – Australian investors are pouring into the sector.
The Betashares S&P ASX Australian Technology ETF (ASX: ATEC) has attracted $193.7 million in net inflows so far this year to 15 April 2026, already exceeding the $156.5 million gathered in 2025.
These flows suggest that, rather than stepping away during volatility, many investors continue to view Australian technology as a long-term structural growth opportunity.
This influx of investment into the ASX ETF has also helped its recent recovery.
After falling roughly 30% across the first three months of the year, it has now rebounded 16% in just the last 3 weeks.
Fund overview
For those seeking Aussie tech exposure, the ATEC ASX ETF aims to track the S&P/ASX All Technology Index (before fees and expenses).
The Index 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.
At the time of writing, it includes 45 underlying holdings, with its largest exposure being to:
