S&P/ASX All Technology Index (ASX:XTX)

Everything you need to know about the latest technology index to list on the ASX.

S&P/ASX All Technology Index (ASX:XTX)

Everything you need to know about the latest technology index to list on the ASX.

What is the ASX All Technology Index?

The S&P/ASX All Technology Index (ASX: XTX) is a relatively new technology index listed on the Australian Securities Exchange. Launched in February 2020, the index reflects the broad range of ASX-listed companies in the technology sector. 

 

Prompted by the rapid increase in the number of tech shares listed on the ASX over recent years, the index was designed to be a smaller, localised version of the United States-based Nasdaq Composite Index (NASDAQ: .IXIC) while being broader and more inclusive than the existing S&P/ASX 200 Information Technology Index (ASX: XIJ).

The ASX All Technology Index was launched in Sydney on 21 February 2020, with technology minister Karen Andrews attending, and executives representing each of the WAAAX shares.

 

How is this different to the ASX 200 Information Technology Index?

The ASX 200 Information Technology Index covers tech companies in the ASX 200 only. However, the ASX All Tech Index encompasses a wider span of technology classifications and tracks not just the information technology sector but also consumer electronics, interactive media and services, and healthcare technology.

ASX executive general manager of listings and issuer services Max Cunningham told the Australian Financial Review at the launch:

The existing index is narrow and for it to be investible it needs a broad club of liquid names that reflect innovation and disruption.

The IT index has the latter, but not a broad enough group, so we have worked with S&P to include GICS sub-categories spanning communication services like interactive media and healthcare technology, so it will better reflect a broader group, with more investment-grade companies.

 

What shares are included on the ASX All Tech Index?

The ASX All Tech Index included 46 Australian tech companies when it officially went live on 24 February 2020. It is rebalanced every quarter with companies required to meet specific industry criteria as well as liquidity and market capitalisation benchmarks.

By the September 2021 rebalance, the ASX All Tech Index had grown to include 82 companies representing a broad range of technology sub-sectors. The total market capitalisation since the index launched has increased from $17 billion to around $170 billion.

As at September 2021, the top 10 ASX All Tech Index companies by market cap are Afterpay Ltd (ASX: APT), REA Group Limited (ASX: REA), Xero Limited (ASX: XRO), WiseTech Global Ltd (ASX WTC), Seek Limited (ASX: SEK), Computershare Limited (ASX: CPU), Carsales.com Ltd (ASX: CAR), NextDC Ltd (ASX: NXT), Pro Medicus Limited (ASX: PME) and Altium Limited (ASX: ALU).

 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Afterpay Limited, Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia has recommended REA Group Limited, SEEK Limited, and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

 

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