When it comes to thematic investing, putting money into exchange-traded funds (ETFs) is a great way to gain broad exposure without having to research every company.
In the technology sector, there are plenty of ETFs available, but I have focused on three that have performed well over the past year.
Let's have a look.
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Asia Technology Tigers ETF (ASX: ASIA)
This ASX ETF has returned an impressive 104.9% over the past year and 15.9% over a longer five-year horizon.
The ETF aims to track the performance of an index comprising the 50 largest technology and online retail stocks in Asia, not including Japan.
As the Betashares website says:
In one trade, ASIA provides diversified exposure to a high-growth sector that is under-represented in the Australian share market, and a complement to investors with US technology exposure. Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.
Major holdings include South Korean semiconductor company SK Hynix, Samsung Electronics, Taiwan Semiconductor, and Alibaba Group.
ASIA pays a low dividend yield of 0.4%.
Electric Vehicles and Future Mobility ETF (ASX: DRIV)
This ASX ETF has not performed as well as the Energy Transition Metals ETF (ASX: XMET), which is focused on companies that mine resources such as copper and lithium, but has still notched up a 36.6% gain over the past year.
The ETF, Betashares says, "provides cost-effective exposure to the growth potential of the electric vehicles and automotive technology thematic in a single ASX trade''.
Major holdings include Sumitomo Electric Industries, Tesla, Volvo, and BYD.
Vehicle manufacturers account for 27.5% of its investments, followed by semiconductor and machinery manufacturers.
The ETF pays a dividend yield of 1%.
NASDAQ 100 Currency Hedged ETF (ASX: HNDQ)
As the name suggests, this ASX ETF aims to track the performance of the NASDAQ-100 Index (NASDAQ: NDX), while hedging its currency exposure.
The Betashares website says further:
With its strong focus on technology, HNDQ provides diversified exposure to a high growth potential sector that is under-represented in the Australian share market. HNDQ is currency-hedged to the Australian dollar, which seeks to minimise the effect of currency fluctuations on returns.
HNDQ is currently outperforming its unhedged counterpart, returning 40.2% over the past year compared to 27.2%.
Major holdings include Nvidia, Apple, and Microsoft.
It pays a dividend yield of 1.5%.
