Investment, development and application are all reinforcing the case for investment in this sector. 

In good news for those interested in this space, the team at Global X have just announced the new Global X Humanoid Robotics ETF (ASX: HMND). 

Fund overview

The Global X Humanoid Robotics ETF (HMND) aims to capture the next phase of AI as intelligence moves into the physical world.

Global X said it includes companies across humanoid and service robotics, industrial and autonomous systems and assistive technologies. It also targets the underlying AI and hardware stack that powers next-generation robotics. 

Selection is based on measurable exposure to the theme, ensuring that constituents derive a meaningful portion of their revenues from relevant activities.

By taking a value chain approach, the strategy avoids relying on a narrow set of early-stage manufacturers and instead provides exposure to the broader infrastructure required for humanoid robotics to scale globally.

The fund includes 30 underlying holdings. 

The majority of the fund includes companies based in China (37.03%), South Korea (30.50%) and The United States (26.45%). 

The management cost is 0.57% per annum. 

The case for humanoid robotics

According to a new report from Global X, the global economy is entering the next phase of the AI cycle. Intelligence is now extending beyond software and into the physical world. 

The report said the past decade has been defined by digital platforms and computing. However, the next phase is centred on applying that intelligence to real-world tasks through robotics. 

Humanoid robots are designed to operate within human environments, enabling automation across a far broader set of use cases than traditional industrial systems. This shift is not incremental as it reflects a transition from automating processes to replicating human capability.

As labour constraints intensify, productivity growth remains constrained, and capital continues to flow into AI, the convergence of robotics and artificial intelligence is beginning to unlock a new multi-year investment cycle that extends well beyond the factory floor.

AI and robotics funds

Global X is an ETF provider that has built out a considerable list of thematic ASX ETFs. 

The new Global X Humanoid Robotics ETF, is the latest to target robotics and AI. 

For investors looking for other ASX ETFs in this sector, some options include: 

• Etfs Robo Global Robotics And Automation ETF (ASX: ROBO) – seeks to invest in companies that potentially stand to benefit from increased adoption and utilisation of robotics and artificial intelligence.
• Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) – targets global companies involved in the production or use of robotics and robotics-focused AI products and services.

The post Meet the newest humanoid robotics ASX ETF from Global X appeared first on The Motley Fool Australia.

However, there's another side of the AI revolution that's less about code and more about machines: robotics and automation.

This physical layer of AI is already transforming manufacturing, logistics, healthcare, and defence — the essential systems that keep economies running. And with reports that Amazon plans to replace up to 600,000 workers with collaborative robots by 2027, it's clear that automation is not a distant concept. It's accelerating now — and it could define the next multi-decade investment opportunity.

The hardware of intelligence

Unlike AI applications, which can scale overnight with mass user sign-on, robotics adoption is far slower, but potentially more enduring.

Building and deploying robots means re-engineering production lines, upgrading supply chains, and installing sensors and control systems that interact with the physical world. That's why analysts see robotics more like infrastructure than short-cycle technology.

According to research from Global X, automation is set to accelerate as companies respond to ageing populations, labour shortages, and the reshoring of manufacturing. The result is a long, structural demand curve — one measured in decades, not months.

Two ETFs capturing this megatrend

For ASX investors looking to tap into this theme, two global ETFs provide diversified entry points across robotics, automation, and AI hardware.

1. Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

RBTZ offers exposure to companies at the forefront of industrial automation, autonomous vehicles, and AI hardware.

Its holdings include global leaders such as Nvidia, and Intuitive Surgical, businesses that design chips, sensors, and robotic systems powering everything from factory automation to surgical precision tools.

The fund's strength lies in breadth. It targets the Indxx Global Robotics and Artificial Intelligence Thematic Index, giving investors access to more than 60 companies positioned along the automation value chain.

While past performance doesn't predict future returns, the ETF has benefited from growing global investment in robotics, rising roughly in line with the broader technology sector over the past year.

2. ETFS Robo Global Robotics and Automation ETF (ASX: ROBO)

ROBO takes a slightly different approach, tracking the Global Robotics and Automation Index, which includes firms directly involved in robotics, automation, and enabling technologies such as sensors, 3D printing, and vision systems.

With roughly 100 holdings across 14 countries, ROBO provides one of the most comprehensive baskets of robotics companies available to ASX investors. The ETF's largest geographic exposure remains the United States, but it also captures innovation from Japan, Germany, and Switzerland, nations leading industrial robotics.

The fund's mix of hardware, software, and component makers means investors aren't betting on a single company or region. Instead, they gain exposure to the long arc of automation adoption.

Thinking long term

Investing in robotics, like most things, requires patience.

Unlike consumer software, where user growth can explode overnight, the rollout of robots across industries takes time, planning, capital investment, and workforce retraining.

However, that's also what makes this space resilient. Once automation infrastructure is installed, it becomes a core part of economic productivity for years to come.

The trend is reinforced by demographic and geopolitical shifts. With global labour markets tightening and reshoring efforts gaining momentum, robots are no longer just about efficiency — they're about sovereignty and supply-chain security.

The AI boom won't just play out on screens. It's happening in factories, hospitals, warehouses, and defence facilities.

So for patient investors, the combination of robotics and automation could prove to be one of the most powerful compounding stories of the coming decades.

The post Are these the must-own ASX stocks for the AI and automation boom? appeared first on The Motley Fool Australia.

Ongoing strength in the US market is lifting not just ASX ETFs holding US stocks but also those holding diversified international shares.

This is because US shares dominate diversified global ETFs as America is home to so many of the world's largest and most profitable businesses.

For example, the VGS ETF is invested in about 1,300 of the world's largest companies listed in major developed countries.

About 76% of those companies are in the US.

Another example is the iShares Global 100 AUD ETF (ASX: IOO), which seeks to track the performance of the 100 biggest global equities.

Just under 81% of IOO ETF holdings are US shares.

Last night, the benchmark index for the US market, the S&P 500 Index (SP: .INX), smashed another record high at 6,698.88 points.

The S&P 500 is up 13.8% in the year to date compared to an 8.2% bump for the S&P/ASX 200 Index (ASX: XJO).

Last night, the Dow Jones Industrial Average Index (DJX: .DJI) also hit a record 46,447.13 points, up 9% this year.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) followed suit with its own record of 22,801.90 points, up 26.8% in 2025.

On the ASX today, the ASX 200 is up 0.74% and the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.69%.

Let's look at some of the ASX ETFs holding international shares that are setting new 52-week highs, if not all-time records, today.

International ASX ETFs smash records on Tuesday

The post Own IOO, IVV, or VGS ETFs? They're smashing records today! appeared first on The Motley Fool Australia.

This follows a big session on Wall Street, with the benchmark S&P 500 Index (SP: .INX) reaching another record close of 6,656.8 points.

Today's strong market appears to be having an outsized impact on ASX exchange-traded funds (ETFs).

At the time of writing, an extraordinary number of ETFs have hit new 52-week highs, or multi-year highs, on the back of today's exuberance.

In fact, at the time of writing, 68 ASX exchange-traded funds have hit new high prices.

Macroeconomic elements may be playing a role in the market surge.

Yesterday, we had the news that the US Fed Reserve has cut interest rates and Australia's jobless rate held steady last month.

ETFs are a favoured way for Aussie investors to access international markets without the hassle of trading on an overseas exchange.

The amazing three-year run for US equities has inspired Aussie investors to think beyond the ASX 200 and the local banks and miners.

The popularity of ETFs is a global trend playing out strongly in Australia.

Betashares data shows Australian investors ploughed a record $5.28 billion into ASX ETFs in July alone.

68 ASX shares setting new records today

Here is a sample of the 68 ASX exchange-traded funds smashing new highs today.

The post 68 ASX ETFs smash multi-year highs amid strong trading on Friday appeared first on The Motley Fool Australia.

You might have exposure to some of the major blue-chip companies listed on the ASX. This could be a variety of the big banks, mining and materials stocks etc. 

You also know that a balanced portfolio includes stocks outside Australia. Based on this, you might have bought a fund that tracks the S&P 500 Index (SP: .INX). 

This gives you exposure to sectors less common on the ASX like technology and healthcare, as well as big global companies like Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL). 

At this point, your portfolio is looking solid. 

Now you may be looking to add a small but concentrated investment in one specific sector. 

This is called thematic investing. Here are some growing themes you may be interested in targeting. 

Commodities 

Commodities are simply raw materials.

They can be precious metals like gold and silver or foodstuffs like corn and wheat and even energy resources like crude oil and natural gas.

This year, physical commodities like gold have far outpaced the returns of the ASX 200. The price of physical gold has risen more than 40%. 

This can be a strong investment for diversification because commodity prices can often move differently from share prices.

Gold has a long history of preserving its value, so investors flock to it when other financial markets get rocky. 

If you are interested in adding commodities like gold to your portfolio, some ASX ETFs to consider include: 

• Global X Physical Gold (ASX: GOLD)
• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)
• VanEck Gold Miners ETF (ASX: GDX)

Artificial Intelligence 

A growing theme that may interest investors is artificial intelligence.

According to Grand View Research, the global AI market is expected to grow at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030. 

AI stocks can be companies involved in chip making, software, or firms that utilise artificial intelligence in their applications.

Importantly, the ASX does not have as many AI focussed stocks as other markets. This can make AI ASX ETFs beneficial, as investors can gain exposure to innovative AI companies in the US, Asia and Europe. 

Some to consider for AI exposure include: 

• Global X AI Infrastructure ETF (ASX: AINF) 
• Global X Robo Global Robotics And Automation ETF (ASX: ROBO)
• Global X Artificial Intelligence ETF (ASX: GXAI)

ESG ASX ETFs

ESG stands for environmental, social, and governance. It is a growing theme amongst investors to target not only financial growth, but simultaneously have a positive global impact through their investment choices.

As the name suggests, this may involve targeting companies committed to contributing to climate targets, supporting human rights etc. It can also involve actively excluding companies that contribute to violence, war, alcohol/tobacco manufacturing or negatively impacting the environment. 

If this sounds like a strategy you would like to include in your investment portfolio, some ASX ETFs to consider include: 

• Betashares Australian Sustainability Leaders ETF (ASX: FAIR)
• Vanguard Ethically Conscious International Shares Index Etf (ASX: VESG)
• BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
• Betashares Energy Transition Metals Etf (ASX: XMET)

The post Thematic ASX ETF investing ideas appeared first on The Motley Fool Australia.

However as more and more funds become available, investors are able to tap into thematic funds.

These funds can follow niche markets that are linked to industries projected for growth. 

Now, there are plenty of funds that track artificial intelligence. This sector has grown rapidly in recent years and subsequently more and more investors may be looking to add exposure to their portfolios. 

Lets look at how three funds that focus on this theme have performed this year. 

Global X Artificial Intelligence ETF (ASX: GXAI)

This fund offers exposure to companies that potentially stand to benefit from the further development and utilisation of artificial intelligence (AI) technology in their products and services.

It has been listed on the ASX for just over a year, but has climbed almost 30% in that time, including more than 8% YTD. 

It has 88 holdings at the time of writing, with 70% of those being from the United States. 

Ultimately, this fund is about pure-play AI and big data exposure.

It focuses on companies directly involved in:

• Machine learning
• Deep learning
• Natural language processing
• AI infrastructure (e.g. chipmakers)
• AI software platforms

According to the fund, the Artificial Intelligence market is projected to have an annual growth rate (CAGR 2024-2030) of 15.83%, resulting in a market volume of US$738.80bn by 2030. 

This fund is suited to investors looking to gain exposure to this growing industry. 

Global X Robo Global Robotics And Automation ETF (ASX: ROBO)

The Global X ROBO Global Robotics & Automation ETF seeks to invest in companies that potentially stand to benefit from increased adoption and utilisation of robotics and artificial intelligence. 

While this fund also offers exposure to AI, it offers a broader technology play than GXAI. It also has a more balanced geographical profile, while still having its largest exposure to US companies (43.9%). 

These companies are largely engaged in robotics, industrial automation, healthcare tech, and some AI. It also targets hardware and systems involved in automation.

It has already risen more than 7% in 2025 and roughly 20% in the last year. 

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

As the name suggests, this fund is focussed on the Australian market rather than global. 

It provides exposure to 42 leading ASX-listed companies in a range of tech-related market segments such as information technology, consumer electronics, online retail and medical technology.

It doesn't have a specific AI thematic focus. However several of its holdings are integrating AI into their products and services, providing indirect exposure. 

It has risen an impressive 10.92% YTD. 

The post Which AI focussed ASX ETF has performed the best this year? appeared first on The Motley Fool Australia.

But since then, markets have staged a strong rebound — and few places has the recovery been more impressive than in the AI and technology sectors.

With AI stocks bouncing back and momentum building again, many investors are wondering: how to get exposure to the AI megatrend without picking individual stocks?

That's where exchange traded funds (ETFs) come in. Let's take a look at three ASX ETFs that could be a smart way to tap into the AI boom.

Global X Artificial Intelligence ETF (ASX: GXAI)

For investors looking for pure-play exposure to the AI megatrend, the Global X Artificial Intelligence ETF is worth considering. It offers access to a diversified portfolio of stocks driving AI development and adoption worldwide.

The GXAI ETF tracks the Indxx Artificial Intelligence & Big Data Index. This includes businesses developing AI software, AI-as-a-Service platforms, and the hardware powering AI and big data analytics.

This ASX ETF isn't limited by geography or sector, so it invests across the global AI value chain. Top holdings include big names like Alibaba, Tencent, Netflix (NASDAQ: NFLX), and Palantir.

Global X notes that these companies appear well-placed to benefit from a market expected to expand from US$305 billion today to US$738 billion by 2030.

Global X Semiconductor ETF (ASX: SEMI)

AI can't function without the semiconductors that power it — and that's where the Global X Semiconductor ETF comes in.

This ASX ETF gives investors access to 30 of the largest semiconductor stocks globally. This includes Taiwan Semiconductor, NVIDIA, ASML, and Broadcom.

Semiconductors are the backbone of modern technology, from AI applications and cloud computing to consumer electronics and autonomous vehicles. As the demand for processing power grows, the semiconductor sector is expected to be a key beneficiary of the AI revolution.

Global X ROBO Global Robotics & Automation ETF (ASX: ROBO)

Finally, AI isn't just about software. It is also driving the physical world of robotics and automation, and that's the focus of the Global X ROBO Global Robotics & Automation ETF.

The ROBO ETF invests in a basket of global stocks across the robotics, automation, and AI value chain. These span industries like industrials, healthcare, and logistics.

Its holdings include names like Intuitive Surgical, FANUC, and Rockwell Automation. Global X highlights these companies are operating in a global robotics market that is forecast to grow from US$72 billion in 2022 to US$283 billion by 2032.

The post AI stocks have soared since the Liberation Day Dip. 3 ASX ETFs to gain exposure appeared first on The Motley Fool Australia.

This can help offset some volatility and spread your portfolio around the Australian or global markets. 

However rather than spreading your portfolio geographically or across sectors, another benefit of ETFs is narrowing in on a specific market or theme you might be optimistic on. 

Here are two ASX ETFs with a niche focus on markets could continue to grow in the long term. 

Etfs Robo Global Robotics And Automation ETF (ASX: ROBO)

As the name suggests, this fund has a specific focus on robotics and artificial intelligence. 

According to the fund, it seeks to invest in companies that potentially stand to benefit from increased adoption and utilisation of robotics and artificial intelligence. These include those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.

I like this niche focus due to the growing opportunity in these fields. 

According to research, the global robotics technology market size is estimated at US$94.54 billion in 2024. It is anticipated to reach around US$372.59 billion by 2034.

Despite focussing on the robotics and AI fields, the fund is highly diversified within the sector. In fact, no company currently represents more than 2.04% of the total fund. 

At the time of writing it is made up of 74 holdings. Its largest geographical representation being in the United States (43.5%) and Japan (21.49%). 

It's important to mention it has not always been smooth sailing for holders of the fund, and has experienced volatility. 

It has risen 10% over the last month. 

BetaShares Global Cybersecurity ETF (ASX: HACK)

This fund aims to track the performance of an index (before fees and expenses) that provides exposure to the leading companies in the global cybersecurity sector.

The logic behind it is simple: with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

It is made up of 32 holdings, with large exposure (78.2%) to the United States. 

It includes industry leaders such as Palo Alto Networks (NASDAQ: PANW) and CrowdStrike (NASDAQ: CRWD). 

The fund has risen 33.98% over the past year, reinforcing that investors agree there is value in this market. 

Foolish takeaway 

Many investors use ASX ETFs to track markets like the S&P/ASX 200 Index (ASX: XJO) or S&P 500 Index (SP: .INX). 

ETFs that track these markets are great fundamental options for your portfolio. 

But if you already have holdings in these, niche ASX ETFs can be a way to call your shot on specific markets you anticipate will grow.

The post Narrowing it down: 2 ASX ETFs with a niche focus appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) rose 1.6% over the week to finish at 7,770.6 points on Friday.

Most of the week's gains for the benchmark index came on Thursday after the United States Federal Reserve meeting and the decision to leave interest rates on hold.

But what got ASX investors really excited was Fed chair Jerome Powell saying it was likely the bank would cut rates "at some point this year".

Eight of the 11 market sectors finished the week in the green.

Let's review.

Materials shares led the ASX sectors last week

The biggest materials stocks by market capitalisation are, of course, the big three ASX 200 miners.

Last week, Fortescue Ltd (ASX: FMG) shares led the pack, rising 4.5% to $24.64 over the five trading days. Mineral Resources Ltd (ASX: MIN) shares matched it, also up 4.5% to $69.15 apiece.

Rio Tinto Ltd (ASX: RIO) shares rose 2.82% over the week to finish at $120.56 per share on Friday.

And the 'Big Australian', BHP Group Ltd (ASX: BHP) rose 2.77% to $43.79 per share.

The big miners were helped by a sharply rebounding iron ore price this week. The price leapt from a nine-month low of US$102.5 per tonne on 15 March to US$111.50 per tonne on Friday.

The bump followed stronger-than-expected industrial production data out of China, which eased investors' broader economic concerns.

Also last week, gold traded at record highs above $US$2,200 per ounce due to investors' confidence that major central banks will cut interest rates soon.

This buoyed local ASX 200 gold stocks including Newmont Corporation CDI (ASX: NEM) shares, up 2.95% over the week to $52.83 on Friday, and Evolution Mining Ltd (ASX: EVN) shares, up 2.56% to $3.40.

A bunch of ASX ETFs predominantly representing international shares hit new 52-week highs last week.

They included VanEck Morningstar Wide Moat ETF (ASX: MOAT) shares, which reached $129.78, and Global X Robo Global Robotics & Automation ETF (ASX: ROBO), which hit $78.60 apiece.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

But among a sea of red, scores of ASX exchange-traded funds (ETFs) are hitting 52-week highs.

How can that be?

Probably because all of them are predominantly based on US and international shares. So, their new peak prices have little to do with what the ASX 200 is doing today.

In fact, US shares have been outperforming ASX 200 stocks for a while now. Over the past 12 months, the S&P 500 Index (SP: .INX) has risen at triple the pace of the ASX 200, up 33.1% compared to 0.5%, respectively.

Let's check out a dozen of the most popular ASX ETFs hitting 52-week highs today.

ASX ETFs hitting new 52-week highs on Friday

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is up 1.03% to $124.99 at the time of writing. This ETF has bounced 28.7% higher over the past 12 months.

Its 52-week high today was $125.

This popular ETF provides access to 1,500 of the world's largest listed companies from 23 countries, excluding Australia.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is up 1.19% to $53.51. This index ETF has risen 33.6% over the past year.

Its 52-week high today was $53.54.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is up 0.92% to $55.09. This ETF has risen 40.5% over the past 12 months.

Its 52-week high today was $55.14.

QUAL was among the top-performing ETFs of 2023. It invests in the world's highest-quality companies based on key metrics such as high return on equity (ROE) and low debt.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

The Vanguard US Total Market Shares Index ETF is up 1.28% to $398.15. This ETF represents 3,747 American companies and has risen 33.4% over the past 12 months.

Its 52-week high today was $398.26.

iShares Global 100 ETF (ASX: IOO)

The iShares Global 100 ETF is up 0.58% to $135.11. This ETF has risen 33.6% over the past 12 months.

Its 52-week high today was $135.15.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

The Global Sustainability Leaders ETF is up 1.27% to $15.17. ETHI holds shares in 300 global companies considered climate leaders, and excludes tobacco and weapons. It's risen 30% over the past 12 months.

Its 52-week high today was $15.18.

Vanguard All-World Ex-US Shares Index ETF (ASX: VEU)

The Vanguard All-World Ex-US Shares Index ETF is up 0.25% to $89.52. This index ETF has risen 15.5% over the past 12 months.

Its 52-week high today was $89.84.

Vanguard Diversified High Growth INDEX ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF is up 0.25% to $64.46. This ETF has risen 16.6% over the past 12 months.

Its 52-week high today was $64.58.

This ETF offers extreme diversification with 16,000 Aussie shares and international shares in its basket. The VDHG holds seven Vanguard index funds comprising 90% global and ASX shares, and 10% bonds.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF is up 1.35% to $129.33. This ETF has risen 19.2% over the past 12 months.

Its 52-week high today was $129.42.

The unique ETF gives investors exposure to a diversified portfolio of well-priced US companies with sustainable competitive advantages (i.e., moats).

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG)

The Vanguard Ethically Conscious International Shares Index ETF is up 1% to $89 at the time of writing — its new 52-week high. This ASX index ETF has risen 31.25% over the past 12 months.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The BetaShares Global Quality Leaders ETF is up 0.98% to $29.94. This ETF has risen 36.3% over the past 12 months.

Its 52-week high today was $29.95.

This ASX ETF invests in companies with strong return on equity (ROE), debt to capital, cash flow generation, and earnings stability.

Global X Robo Global Robotics & Automation ETF (ASX: ROBO)

The Global X Robo Global Robotics & Automation ETF is up 1.64% to $78.32. This ETF has risen 13.3% over the past 12 months.

Its 52-week high today was $78.38.

In other news…

Several individual shares are also hitting 52-week highs today.

They include Goodman Group (ASX: GMG) at $32.03 and Scentre Group (ASX: SCG) at $3.41.

Suncorp Group Ltd (ASX: SUN) shares also hit a new 52-week high of $16.32.

The post 12 ASX ETFs breaking the mould to hit 52-week highs today appeared first on The Motley Fool Australia.

An ETF gives us exposure to a whole range of businesses in just one investment, which is handy considering we can't say for certain which AI-related business will be the big winner of the future, though NVIDIA Corp (NASDAQ: NVDA) is certainly doing its best to claim the AI title.

Having said that, let's look at three ASX ETFs that could be good candidates to own if AI exposure is the goal of an investor.

Global X Fang+ ETF (ASX: FANG)

This ETF aims to just invest in the largest businesses in the US. They are involved in a number of investment themes including technological advancements, changing demographics and consumer preferences.

The big technology businesses are among the most influential globally in the AI space. The FANG ETF gives good exposure – around 10% of the portfolio – to names like Nvidia, Microsoft, Tesla and Alphabet. It only owns 10 names though, which isn't a lot of diversification.

It has an annual management fee of just 0.35%, which is cheaper than other ASX ETFs that give sizeable exposure to large tech names. For example, the Betashares Nasdaq 100 ETF (ASX: NDQ) has an annual management fee of 0.48%.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The idea of this fund is that it invests in global companies involved in areas like industrial robotics and automation, non-industrial robots, artificial intelligence and unmanned vehicles and drones.

It is currently invested in 42 names, so there's more diversification with this option than the FANG ETF.

The RBTZ ETF has an annual management fee of 0.57%, which isn't bad.

There are four industries within the portfolio with a weighting of at least 10%, including industrial machinery and supplies (24.3%), semiconductors (21.3%), healthcare equipment (12%) and electronic equipment and instruments (11.2%).

In terms of the biggest individual positions, there are five names with a weighting of more than 7.5%: Nvidia (8.9%), Abb (8%), Intuitive Surgical (7.9%), Keyence (7.9%) and SMC (7.7%).

Global X Robo Global Robotics & Automation ETF (ASX: ROBO)

This is another fund involved in robotics, automation and so on.

Global X explains that the average cost of an industrial robot declined from US$46,000 in 2010 to just US$27,000 in 2017. It's forecast to fall below US$11,000 by 2025 as technology improves and scales. The fund provider suggests robotics and automation have "wide-reaching applications, extending far beyond industrial activity."

The ROBO ETF comes with an annual management cost of 0.69%, so it's the most expensive of the three ASX ETFs in this article.

The ROBO ETF currently has 77 holdings in the portfolio, with the biggest position accounting for less than 2% of the portfolio and most of the weightings being between 1% and 2%.

At the time of writing, the biggest three positions are Kardex, Intuitive Surgical and Autostore.

The post 3 ASX ETFs to buy for exposure to the booming international AI sector appeared first on The Motley Fool Australia.

They are artificial intelligence (AI), uranium shares, and emerging markets.

In an article published on Friday, Marc Jocum from Global X said thematic ETFs provided a great way to invest in megatrends with less risk.

He commented:

Predicting what will happen in the short-term is challenging given the constantly evolving market environment.

However, if investors extend their time horizons to multiple years, they can be prepared for a future marked by long-term structural shifts known as "megatrends". 

Jocum said megatrend investing was all about long-term thematics. He said the idea was to invest in powerful, potentially transformative global trends that are set to play out over years and decades.

ASX ETFs and the 3 investment megatrends of 2024

Artificial intelligence

Jocum said ChatGPT was a catalyst for investor interest in AI in 2023, but it had only scratched the surface.

He commented:

AI is at a crucial juncture in its adoption cycle … Global X believes sales growth across the AI category can potentially exceed 50% in the year ahead, well above the 5% sales growth expected in the broader share market.

The addressable market for AI services, including the full ecosystem of hardware, software, and data, is set to expand in the coming years, estimated to grow by double digits to $1.6 trillion by 2028. 

Jocum said identifying individual stocks set to benefit from the AI trend was difficult. He said some companies may not be able to leverage AI capabilities without undermining traditional revenue streams. 

For diverse exposure to this megatrend, investors may consider exploring exchange traded funds (ETFs) that track a basket of artificial intelligence benefactors, semiconductor companies or technology stalwarts.

ASX ETFs offering exposure to the AI megatrend include:

Uranium and ASX ETFs

Jocum explained that nuclear energy had become a key element in the world's green energy transition.

He said:

At the 2023 United Nations Climate Change Conference (known as COP28), a declaration was signed among 22 countries to triple nuclear energy capacity globally by 2050.

It also invited international financial institutions (such as the World Bank) to encourage the inclusion of nuclear energy in lending policies.

The uranium price has skyrocketed by 112% over the past 12 months to US$106 per pound on Friday.

Many countries are building nuclear reactors to supplement their domestic energy supply.

Miners are firing up uranium assets that were previously on care and maintenance for years.

Jocum said:

An important distinguishment between a 'fad' and a long-term structural theme is whether there are strong governmental or institutional initiatives. 

Considering climate change is at the front of minds for global nations, combined with favourable momentum in public and private markets, the uranium industry is positioned to grow …

He said Australia has lots of uranium but only delivered 8% of global production. This is because mining is banned in most states.

He commented:

Investors wanting to get exposure to the uranium decarbonisation theme should expand their investment universe to consider global players …

As uranium lacks a liquid spot market like gold and copper, investors could consider investing in an ETF tracking a broad range of global companies involved in uranium mining and the production of nuclear components.

ETFs offering exposure to the uranium megatrend include:

Emerging markets

Jocum said China's economic weakening in 2023 had led to a changing of the guard in emerging markets:

… investors are looking past China, with eyes locked on India as the bright star of emerging markets.

In Global X's opinion, India has emerged as one of the better structural opportunities backed by significant economic, social and political drivers. This changing of the guard in the emerging market leader is a monumental shift in the investment landscape. 

Jocum said that 10 years ago, India accounted for just over 5% of the emerging markets sector. That has now tripled to 16%. By contrast, China's market share has contracted by a third since the pandemic.

Jocum said global companies like Apple Inc (NASDAQ: AAPL) were diversifying their supply chains from China to India. This could lead to further infrastructure development and economic growth.

Traditionally, Australian investors looking for exposure to India had to invest through instruments like mutual funds as many brokers cannot access Indian equities.

However, with the average Indian mutual fund charging 1.2% in fees and the fact that most active funds underperform the market over the long-term, investors can look to pay a fraction of the cost and get exposure to an Indian share market index like the NIFTY 50.

ETFs offering exposure to the emerging markets megatrend include:

The post 3 investment megatrends of 2024 and the ASX ETFs offering a way in appeared first on The Motley Fool Australia.

But don't worry, because investors wanting access to artificial intelligence stocks can still achieve their goal with relative ease thanks to exchange-traded funds (ETFs).

For example, listed below are a couple of ETFs that allow investors to buy many of the leading artificial intelligence stocks in one fell swoop. Here's what you need to know about these ASX ETFs:

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The RBTZ ETF aims to track the performance of an index that includes global companies involved in the production or use of robotics and artificial intelligence products and services.

Betashares explains what the index looks for when investing:

The Index focuses on identifying the industries and sub-themes positively impacted by robotics and A.l. The Index includes companies involved in Industrial Robotics and Automation, Non-Industrial Robots, Artificial Intelligence and Unmanned Vehicles and Drones. To qualify for inclusion in the Index, a constituent must have a minimum market capitalisation of US$100 million.

The fund's top five holdings include Nvidia, Intuitive Surgical, ABB, Keyence Corp, and Fanuc.

Global X Robo Global Robotics & Automation ETF (ASX: ROBO)

Another ASX ETF that allows you to gain exposure to a group of artificial intelligence stocks is the Global X Robo Global Robotics & Automation ETF.

The fund manager, Mirae Asset, highlights that the global robotics market is expected to grow materially in the coming years. It notes that the market was valued at more than US$23 billion in 2020 and is expected to nearly triple to US$74 billion by 2026.

And while robotics and automation may seem like something that is still way off, that isn't the case. Especially with costs coming down markedly. The fund manager commented:

The average cost of an industrial robot declined from USD$46k in 2010 to just USD$27k in 2017 – and is forecasted to dip below USD$11k by 2025 as technology improves and scales, allowing for broader adoption across industries.

This bodes well for its top five holdings, which are Ocado, IPG Photonics, Intuitive Surgical, Rockwell Automation, and Azenta Inc.

The post You don't have to pick stock winners to cash in on artificial intelligence: Here's why appeared first on The Motley Fool Australia.

This was arguably amplified by the stunning returns of leading AI share NVIDIA Corporation (NASDAQ: NVDA) over the past month or two.

Now, investors may want to gain some exposure to this exciting industry. But the fact remains that AI is still an extremely complex area that might be offputting to many investors once they get into the weeds.

Choosing a winner when you don't fully understand the technology can be a difficult and dangerous endeavour. That's where ASX exchange-traded funds (ETFs) might come in handy.

One of the advantages of an ETF is the ability to get exposure to an entire sector or industry without having to sift through it to find individual winners.

On the ASX, there are ETFs that cover everything from gold miners and cybersecurity stocks to oil futures and video gaming shares. Luckily, there are also a few that give investors exposure to AI stocks. So what are these AI ETFs?

AI ETFs on the ASX

Well, one of the most pertinent AI funds on the ASX is probably the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ).

This fund only focuses on global companies that have direct involvement in either robotics, automation, unmanned vehicles, and artificial intelligence. More than 40% of its portfolio is made up of US shares, but you also get exposure to the Japanese, Swiss, Norwegian, and Canadian markets, among others.

Some of the BetaShares Robotics and Artificial Intelligence ETF's largest holdings include Intuitive Surgical Inc, Keyence Corp, and Abb Ltd. But its largest holding by far is none other than NVIDIA.

This ETF charges a management fee of 0.57% per annum and has returned an impressive 27.4% in the 12 months to 31 May. It has also averaged a return of 7.64% per annum since its inception in 2018.

This fund is probably the most AI-centric ETF on the ASX. However, there are other ETFs that also give investors exposure to AI stocks.

Another similar ETF to consider for AI exposure is the Global X Global Robotics & Automation ETF (ASX: ROBO).

This fund is similar in scope to RBTZ. NVIDIA is the second-largest holding in this portfolio, with Intuitive Surgical, Keyence, and ServiceNow Inc amongst the top holdings here. The fund also has similar exposures to the US markets, as well as those of Japan. However, it does have greater exposure to other countries such as Taiwan and Germany.

The Global X Robotics & Automation ETF charges a management fee of 0.69%. It has returned 21.45% over the past 12 months and has averaged 9.26% per annum over the past five years.

Some other funds to consider

Other ASX ETFs that don't explicitly target AI stocks, but could still give investors some exposure include the Global X FANG+ ETF (ASX: FANG), the Global X Morningstar Global Technology ETF (ASX: TECH), and the BetaShares NASDAQ 100 ETF (ASX: NDQ).

There is also the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) for those investors looking for a fund with some local AI stocks, such as Appen Ltd (ASX: APX).

So as you can see, investors looking for an AI ETF are spoilt for choice on the ASX.

The post How to invest in AI with ASX ETFs appeared first on The Motley Fool Australia.

But today, there seems to be an ETF for every flavour you can think of. Oil? There's the BetaShares Crude Oil Index ETF (ASX: OOO). Do you find particular interest in the share market of South Korea? Then the iShares MSCI South Korea ETF (ASX: IKO) could pique your eye.  Food loving investors might find interest in the BetaShares Global Agriculture ETF (ASX: FOOD). Robotics? Try the ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO). You get the idea.

The youngins love it

But new research from ETF provider BetaShares shows just how much of this interest comes from younger investors. 2020 was a great year for the ETF structure, despite the disruption of the global market crash in March.

According to the research, the number of ASX investors using ETFs climbed 58% in 2020, from 455,000 to 720,000. That was reportedly the largest annual increase ever recorded.

What's more, nearly two–thirds (65%) of these new ETF investors entering the market between March and August 2020 were under the age of 40. That is, millennials and 'Gen Zers'.

Alex Vynokur, CEO of BetaShares, said this of what he sees:

The average age of the ETF investor continues to fall, as first–time investors increasingly are made up of those under the age of 40. This continues a long–term trend and demonstrates that the wealthier early SMSF adopters of ETFs are now joined by younger Australians, who are also turning to ETFs to help them achieve their financial goals...

Investing can be daunting, particularly in times of volatility, such as during the pandemic–related market turmoil or more recently, during the GameStop controversy.

The fact that investors, particularly younger investors, continued to invest in ETFs throughout 2020 suggests that not only are investors attracted to the liquidity ETFs offer in volatile markets, they also appreciate simple, cost–effective way to diversify portfolios and minimise single stock risks…. We are preparing for another strong year of growth

Why are ETFs so hot right now?

So why are investors, especially millennials and Gen-Zers, choosing to invest in ETFs rather than individual ASX or international shares? Well, 63% of the investors BetaShares surveyed stated that diversification was the most important factor at play for choosing ETFs.

This makes sense. It is far easier to achieve diversification through a single share of an ETF than through direct share investing. That's because a single ETF can hold thousands of individual holdings with it. Other reasons why investors chose an ETF (or two) for their portfolios include access to specific overseas markets (24%), avoiding risk to individual stock exposure (42%), and efficiency (39%).

These numbers look set to grow even higher over the next 12 months. BetaShares is expecting another 190,000 investors to buy their first ETF in the next year. And if last year's statistics hold, this will include 120,000 millennials and Gen-Zers. ETFs are the new black right now, that's for sure.

The post Data shows millennials love investing in ASX ETFs appeared first on The Motley Fool Australia.

However, pandemics pass and economies eventually recover. And futurists might already be looking ahead to see which industries will lead the world out of this pandemic. Picking individual companies is difficult and risky – particularly in the current climate. However, exchange-traded funds (ETFs) offer an alternative investment option.

Buying ETFs basically means you buy shares in a basket of companies. This gives your portfolio broader exposure to the market than you would otherwise be able to achieve on your own – and hence reduces your risk. But the targeted nature of many modern ETFs also gives you the chance to still be selective about which ASX trends you want to participate in.

Here are three options for targeted ETFs that could tap into growing areas of the economy post-COVID-19.

Betashares Australian Sustainability Leaders ETF (ASX:FAIR)

This Betashares ETF tracks an index of companies that meet various ethical and sustainability standards. These standards are primarily based around exposures to the mining or fossil fuel industries, but also extend to activities that involve animal cruelty or gambling. It also preferences companies that are market leaders in adopting sustainable business practices.

The index excludes Australia's big four banks, and is heavily weighted towards healthcare. Its largest holdings are in companies like Fisher & Paykel Healthcare Corporation Ltd (ASX:FPH) and CSL Limited (ASX:CSL). But it also includes companies in the communications services and technology space.

Climate-conscious investors were already becoming more discerning about where they invested their money prior to the COVID-19 pandemic. This crisis may only advance that trend.    

ETFS ROBO Global Robotics and Automation ETF (ASX:ROBO)

With a real eye to the future, this ETF aims to track an index of up to 200 companies that are global leaders in robotics, automation and artificial intelligence. While it is heavily weighted towards the industrials and IT sectors, it invests across multiple industries, including healthcare. Currently, its largest holding is in US-based computer game company NVIDIA Corporation (NASDAQ:NVDA).

AI and robotics are rapidly evolving ASX trends that could shape the future. This is particularly in a post-COVID-19 world where companies seek to drive efficiencies through automation and more business is conducted digitally. This ETF could give you exposure to the exciting companies that are pushing the boundaries of this technology.

ETFS S&P Biotech (ASX:CURE)

The last ETF on my list provides exposure to the US biotech sector. Biotech is a niche part of the healthcare industry that focuses on the research and development of treatments and vaccines based on genetic engineering.

The index includes companies like Novavax, Inc. (NASDAQ:NVAX) that are in the race to develop a COVID-19 vaccine. However, all these companies develop cutting-edge treatments that will have applications well beyond our current pandemic.

Barriers to entry for this part of the healthcare sector are incredibly high – new companies are required to invest heavily in research and development just to gain a foothold. This means that once a company is established, it can grow its market share and profits rapidly.

The post 3 ASX ETFs tapping into future ASX trends appeared first on The Motley Fool Australia.

But if you can stomach this volatility, then building a $100,000 portfolio of growth shares could be the right path for you. So here's how I would build such a growth-focused portfolio:

Spend $25,000 on Openpay Group Ltd (ASX: OPY) shares

Openpay is one of the 'mid-tier' players in the red-hot buy now, pay later (BNPL) space. Its shares have been on an absolute tear in recent months, rising more than 300% over the past 3 months alone. Even with the current Openpay share price, I still think there could be an opportunity here for a long-term investment. Unlike its bigger rivals Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), Openpay focuses more on life's 'bigger' purchases, such as medical bills, hardware, bedding and dental. I think this is a relatively untapped niche, and if Openpay can keep its momentum going, I'm optimistic about the prospect of a decent, long-term payoff from this company.

Spend $25,000 on Polynovo Ltd (ASX: PNV) shares

Polynovo is one of the most exciting, up-and-coming ASX healthcare shares in my opinion. Its flagship 'Novosorb' product is a cutting-edge skin treatment for severe burns, which has already received rave reviews from various corners of the medical profession. Polynovo is also working to expand into the hernia and breast implant markets, which (if the company can pull it off) represent significant future growth opportunities. The Polynovo share price has yet to re-touch its February high, which I think could mean there is plenty of near and long-term growth left on this runway.

Add $25,000 of Marley Spoon AG (ASX: MMM) shares

Marley Spoon is a meal delivery service that works on a subscription basis. It targets consumers who care about quality, nutritious meals but lack either the time or inspiration to shop for the ingredients themselves. The company provides a continually updated menu and delivers the precise ingredients enabling customers to cook their chosen meals at home. The trend towards time-effective, healthy eating was already on the rise prior to COVID-19.

Following the onset of the pandemic and its associated lockdowns, however, the move towards these types of services has accelerated even further. As a result, the Marley Spoon share price has been on fire in recent months, climbing more than 500% year to date. This was fuelled by revelations the company's services were selling like hot cakes during lockdowns, with sales up 46% in the first quarter of 2020. If even some of this recent increase in the demand for convenient, cook-at-home meals continues longer term, I think Marley Spoon has a very bright future.

Finish with a $25,000 investment in ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO)

This exchange-traded fund (ETF) holds a basket of global companies that are all involved in robotics and automation. I feel this is an area we can probably all agree is ripe for sizable future growth. In my opinion, the trend towards greater automation is one of the most significant in the commercial world. Afterall, every company wants to become more efficient with their capital. With this investment, you are buying into companies like Daifuku Co, NVIDIA, ServiceNow, and iRobot (the robotic vacuum cleaner company, not the Will Smith movie!). I believe these are all exciting and disruptive growth organisations. This ETFs management fee isn't exactly cheap at 0.69% per annum. But I think it's worth it considering the global exposure this ETF can provide for us ASX investors.

The post How I'd build a $100,000 portfolio with ASX growth shares appeared first on The Motley Fool Australia.

In a broad sense, the sector now comprises companies that not only create digital goods but also provide the physical backbone (cloud infrastructure) and security layers (cyber defense) that modern economies require to function.

About ASX technology shares

The tech space remains the primary engine for growth-oriented investors in Australia. While the "cheap money" era of 2020–2021 is a distant memory, the sector has found a new catalyst in the Generative AI build-out.

As of April 2026, the sector's long-term performance remains impressive, though recent volatility has tested investor resolve. Over the past five years, the technology sector has maintained its lead over the broader market, largely due to the compounding earnings of its largest members.

5-Year Performance Comparison

The following table reflects the annualized total returns (including dividends) over the last five years.

Note: The "All Tech" index experienced a significant correction in early 2026 due to geopolitical tensions and a re-evaluation of AI valuations. However, its 5-year average still comfortably outperforms the broader market's ~5% return.

New Trends and Risks in 2026

While traditional risks like rapid obsolescence still exist, the risks in 2026 have shifted toward Energy and Regulation:

• AI Infrastructure & Data Centers: Companies like NextDC (ASX: NXT) are now viewed as "digital utilities." The bottleneck for growth is no longer just software code, but access to the massive amounts of electricity required to power AI workloads.
• Cybersecurity & Data Governance: Following several high-profile breaches in recent years, cybersecurity is no longer an "optional" tech spend. It is now a mandatory defensive cost for every company on the ASX.
• Agentic AI: We have moved past simple chatbots. The "SaaS" (Software as a Service) model is being replaced by "Agentic AI," where software independently performs complex tasks. This has created a "dispersion" in the market—investors are picking winners that successfully integrate AI (like WiseTech) while punishing those seen as slow to adapt.

Tech can be volatile 

The S&P/ASX All Technology Index (XTX) remains the gold standard for tracking this sector. It is broader than the old IT index, covering 45 constituents across health-tech, fintech, and interactive media.

Many tech stocks in 2026 are still considered "high-conviction" plays. In a bull market with stable interest rates, these growth shares typically outpace the banks and miners of the ASX 200. However, as seen in the April 2026 market dip, tech is often the first sector to be sold off when global "black swan" events occur — such as the recent spike in oil prices and geopolitical rhetoric — due to their high price-to-earnings (P/E) multiples.

For investors, the lesson of 2026 is selectivity. The "tide" no longer lifts all boats; instead, the market is rewarding companies with high recurring revenue and "moats" that AI cannot easily disrupt.

Boom and bust cycles

In times of market panic, investors typically "flight to quality," moving capital into established, profitable large-cap shares. Because many ASX tech companies skew younger and prioritize aggressive reinvestment over immediate dividends, they remain highly susceptible to sharp sell-offs when sentiment shifts.

However, these "busts" often precede rapid recoveries. While the 2020 post-COVID rebound saw the All Technology Index surge 39% in six months, we saw a similar recovery in 2024–2025 as the market rewarded AI-integrated software leaders.

The innovation premium and risk

The tech sector is a cycle of rapid creation and creative destruction. Price bubbles can form quickly as investors chase the "next big thing" (such as the recent 2025 AI hardware craze), leading to sharp corrections when valuations outpace actual earnings.

Successful investing in this space requires acknowledging a fundamental truth: some tech investments will fail. Whether a company is supplanted by a superior algorithm or fails to monetize its R&D, obsolescence is a constant threat. A robust 2026 risk management strategy relies on diversification, balancing high-reward "moonshots" with mature tech stalwarts to survive the sector's inherent volatility.

Key areas for investment 

The ASX technology sector has expanded far beyond traditional hardware and software. Today's landscape is a mix of global heavyweights and specialized local innovators.

1. AI, Payments, and Emerging Tech

• Artificial Intelligence (AI): No longer just a buzzword, AI drives everything from predictive logistics to medical diagnostics. While US giants dominate, the ASX provides exposure through data-centric players like Appen (ASX: APX) and AI-integrated software leaders.
• Digital Payments & BNPL: Following the acquisition of Afterpay by Block Inc (ASX: SQ2), the sector has matured. Buy now, pay later (BNPL) players like Zip Co (ASX: ZIP) continue to innovate as "cashless" economies become the global standard.
• Blockchain & Digital Assets: Beyond cryptocurrency, blockchain's decentralized ledger technology is being integrated into supply chains and financial registries for its "incorruptible" record-keeping.
• Autonomous Systems: While Tesla and Waymo lead self-driving vehicles, ASX-listed companies contribute through specialized sensors and mapping software used in mining and industrial automation.

2. Infrastructure, Cloud, and Software

• SaaS (Software as a Service): The ASX excels here, led by Xero (ASX: XRO), which transformed accounting into a cloud-based subscription model.
• Cloud Computing & Connectivity: As data needs explode, "digital landlords" like NextDC (ASX: NXT) provide the physical data centers, while Megaport (ASX: MP1) offers the elastic interconnection services that make the cloud functional.

3. Internet, IoT, and Security

• Cybersecurity: With data breaches posing systemic risks, cybersecurity is now a non-discretionary expense. Investors often gain diversified exposure here through specialized ETFs like the BetaShares Global Cybersecurity ETF (ASX: HACK).
• Marketplace Leaders: The ASX is home to dominant digital platforms like REA Group (ASX: REA) and Carsales (ASX: CAR), which monetize high-traffic ecosystems through advertising and premium subscriptions.
• Internet of Things (IoT): From smart homes to "AgTech" soil sensors, the IoT connects billions of devices. Companies like Altium (ASX: ALU)—now a global leader in PCB design software—are essential to the manufacturing of these connected components.
• Streaming & Media: Homegrown services like Stan (owned by Nine Entertainment, ASX: NEC) compete with global giants like Netflix, leveraging proprietary digital infrastructure to deliver content.

A look at technology ETFs 

An ETF is a fund that invests in multiple shares but is sold like a single share on the ASX. 

Most ETFs track a specific index, so they provide a way to own an entire market sector without purchasing every stock individually. For example, you might buy an ETF comprising all 200 shares in the ASX 200 or a smaller ETF tracking biotech companies.

Like a mutual fund, an ETF has an expense ratio – the percentage of the fund's assets used to cover management, advertising, and administrative fees. In a broad sense, lower is better, but you should look at overall returns, not just the expense ratio, when considering an ETF.

There are several tech ETFs available on the ASX. We've already discussed HACK, but other examples include the Morningstar Global Technology ETF (ASX: TECH), which tracks a global basket of large-cap tech shares such as Netflix and Alphabet. 

The BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) tracks every share in the ASX All Technology Index. The Robo Global Robotics and Automation ETF (ASX: ROBO) follows a basket of AI and robotics-focused companies. 

There are plenty of choices out there!

Who should invest in technology? 

Technology shares offer opportunities for novice and experienced investors alike. They are a highly diverse collection of companies operating in many different fields. And the sector includes many household brands that have become a part of our daily lives, like Afterpay, Apple and Netflix.

It's also an investment space where the average person can jump on an emerging technology they have experienced and believe will become part of the future.

Technology shares offer opportunities for both growth and income investors, who can choose from several mature, established companies. Of course, this is a rapidly developing sector, so there are usually some growth prospects, even in mature companies.

Trying to get a clear picture of the value of a technology share can be difficult. The products and revenue streams can be more complex than a consumer goods company like Woolworths Group Ltd (ASX: WOW), which sells brands and products most of us are familiar with. 

Valuing tech stocks can also be complex. We can value companies using several methods, including earnings-based, revenue-based, cash flow-based, equity-based, and member-based valuations.

Growth investors might like … 

Growth investing is the strategy of buying shares in companies expected to expand significantly in the future. Rather than valuing a stock based on what it has achieved to date, growth investors pay a "premium" today for the company's future potential. These stocks often command immense attention from market analysts, frequently overshadowing much larger, more established companies due to their disruptive nature.

The primary appeal is the prospect of astronomical returns from buying in early. Australian market history provides some spectacular case studies of this "high-conviction" approach:

• Afterpay (The "160-Bagger"): In one of the most famous growth stories on the ASX, Afterpay launched its IPO at just $1.00 in 2016. Despite a volatile journey, shares peaked at over $160.00 by early 2021. This culminated in a $39 billion acquisition by US giant Block Inc in 2022—the largest corporate deal in Australian history.
• Xero (The Long Runway): Listed since 2012, Xero operated in "aggressive growth mode" for seven years before reporting its first profit in 2019. During that decade, the share price climbed from roughly $4.50 to an all-time high near $158.00.

The fact that investors were willing to assign a P/E ratio above 500x to Xero during its expansion phase demonstrates a collective faith in its long-term "runway." However, because these companies often delay profitability to reinvest every cent into the business, traditional valuation metrics can be misleading.

To determine if a growth stock is reasonably priced, you should balance market potential against specific financial health markers:

• Forward Earnings & PEG Ratio: Look at forward earnings projections rather than trailing ones. The Price-to-Earnings-to-Growth (PEG) ratio is particularly useful as it adjusts the P/E ratio by the company's expected growth rate.
• Cash and Debt: For companies not yet reporting a net profit, pay close attention to Free Cash Flow and Debt levels. This helps you understand if the business has enough "fuel" to reach its goals without needing to diluting shareholders with constant capital raises.

Ultimately, growth investing requires a high risk tolerance and an eye for how a company might dominate its industry years down the line.

Top ASX technology shares

Tech stocks often straddle a couple of market sectors. Many ASX Information Technology sector companies combine technology with other services. For example, Xero is also a services company, and Zip Co is also a financial or payments company.  

Investors can gain exposure to various industries by investing in tech stocks. Maybe you don't think BNPL stocks have a bright future, but you believe demand for cybersecurity services will skyrocket in future. You can still gain that exposure by investing in technology stocks and ETFs. 

Three of the largest ASX technology stocks by market capitalisation are listed below. Note that 2 of the companies on this list are members of what used to be the ASX tech scene's hottest club – the WAAAXers. Along with Appen, Altium, Afterpay, and Xero, the WAAAX shares were described as Australia's answer to the US FAANG group, consisting of Facebook (now Meta Platforms), Apple, Amazon, Netflix, and Google (whose parent company is Alphabet).

WiseTech

WiseTech (ASX: WTC) is a global logistics software provider, with its CargoWise platform used by companies worldwide to manage complex supply chains, including customs and freight operations. Its software is deeply embedded in customer workflows, creating high switching costs and a steady stream of recurring revenue. This has helped the company build a strong competitive position while expanding rapidly through both organic growth and acquisitions.

Despite a significant pullback in its share price over the past year, driven by integration challenges, margin pressures, and broader concerns around AI disruption, the underlying business remains solid. Revenue continues to grow strongly, cash flow is improving, and CargoWise is still gaining traction globally. Much of the weakness in reported earnings reflects amortisation and acquisition-related costs rather than a deterioration in core operations.

Looking ahead, WiseTech appears well placed to benefit from the ongoing digitisation of global trade. The company is embedding AI into its platform to enhance efficiency and deepen customer integration, which could strengthen its competitive advantage over time. While risks remain, the long-term growth story is intact, and recent share price weakness may reflect sentiment rather than fundamentals.

Xero 

Xero (ASX: XRO) is a SaaS giant of the ASX that provides cloud-based accounting and payments software to small and medium-sized businesses. It was founded after Rod Drury recognised how difficult bookkeeping was for small businesses. Since listing in Auckland in 2007 and on the ASX in 2012, it has grown into a global platform with a strong presence across Australia, New Zealand, the UK, and beyond. Its software plays a critical role in managing invoicing, payroll, and financial reporting, making it deeply embedded in customer operations and supporting high retention rates and recurring subscription revenue.

Despite a sharp pullback in its share price in recent years, driven by the broader tech sell-off and concerns around AI disruption, Xero's long-term growth story remains intact. The company still has a significant global expansion opportunity and the ability to increase revenue per user through additional services. Encouragingly, analyst sentiment remains largely positive, with most ratings sitting at buy and price targets pointing to meaningful upside. Combined with its scalable model and ongoing shift towards cloud-based software, Xero continues to stand out as a compelling long-term growth play.

NextDC

NextDC (ASX: NXT) is an Australian data centre operator, providing the physical infrastructure required to store, process, and move vast amounts of data. Its facilities house computer hardware, telecommunications systems, and critical IT infrastructure that underpin modern digital services.

As demand for cloud computing, AI workloads, and data storage continues to accelerate, the importance of high-performance data centres has grown significantly. NextDC sits at the centre of this trend, with its infrastructure becoming increasingly essential to businesses. The company has been investing heavily in expanding capacity, and its growing forward order book highlights strong customer demand, supported by long-term contracts and recurring revenue streams.

While this growth comes with challenges such as high capital requirements and potential pressure on near-term earnings, NextDC remains well positioned within Australia's digital infrastructure boom. With operations across the country and international expansion plans underway, it offers exposure to the structural growth of data usage and AI, with some brokers remaining optimistic about its long-term potential.

The post Everything you need to know about investing in technology in 2026 appeared first on The Motley Fool Australia.

Investing in AI is a form of thematic investing; that is, gaining exposure to a niche that is expected to grow significantly over time.

What is artificial intelligence? 

AI refers to intelligence demonstrated by machines. It is a wide-ranging branch of computer science focused on building smart machines capable of performing tasks that have typically required human intelligence. AI makes it possible for machines to learn from experience, adjust to new inputs, and perform tasks that previously required human input. 

How is artificial intelligence used? 

Advances in machine learning, deep learning, and natural language processing have enabled rapid advances in AI over the last decade. Examples include smart assistants such as Siri and Alexa, song and TV show recommendations from Spotify and Netflix, and spam filters on email. AI is also used to provide 24/7 customer service via chatbots, to write news stories, and in self-driving cars.

Here are 3 ASX shares involved in the AI sector. 

Appen Ltd (ASX: APX)

Appen provides data for use in machine learning and AI. It collects and labels images, text, speech, audio, and video data used to build and improve artificial intelligence systems at some of the world's biggest tech companies. 

Appen listed on the ASX in 2015 and has grown exponentially since then. Total profit for the year ended 31 December 2014 was $1.615 million. Total profit for the year ended 31 December 2018 was $49 million. Appen's share price has increased from 56 cents in early 2015 to more than $24 currently. 

Brainchip Holdings Ltd (ASX: BRN)

Brainchip is a provider of neuromorphic computing solutions, a type of AI inspired by the biology of the human neuron. In 2018, Brainchip announced the release of the Akida Neuromorphic System-On-Chip. The Akida is small, low cost, and low power, making it well suited for applications such as autonomous vehicles, drones, and machine vision systems. 

The Akida IP was released for sale as a license in mid 2019 and has received a positive response from customers. Brainchip has some revenues, however these are currently not sufficient to cover its expenses for R&D, marketing, etcetera. The company ended the September 2019 quarter with US$9.5 million in cash. Significant reductions in planned expenses in 2020 have been initiated. 

ETF Securities Global Robotics and Automation ETF (ASX: ROBO) 

This ETF tracks the ROBO Global Robotics and Automation Index. The Index is made up of shares in companies in the global value chain of robotics, automation, and artificial intelligence. The ETF has provided returns of 29.50% in the year to 31 December. 

Management fees are 0.69% per annum and distributions are made annually. The ETF has 91 holdings spread across 13 countries with a weighted price-to-earnings ratio of 30.7. 

Foolish takeaway 

The AI industry will only grow over the coming years. Whether that means Brainchip and Appen will also grow remains to be seen. In my view, the least risky choice of the 3 is likely ROBO, given the diversification it provides. 

The post 3 ASX shares for exposure to the artificial intelligence industry appeared first on The Motley Fool Australia.

Here we look at 4 investment trends that could play out in 2020.

European resurgence

Europe has been overlooked and undervalued by global investors for years, but this trend could be set for a reversal in 2020. As uncertainty around Brexit decreases, Morgan Stanley is predicting expanding multiples in Europe, which is also the only market where multiple expansion is predicted. Investors worldwide are underweight in European equities following more than a year of outflows from the region, with some inflows starting to be seen.

European exposure can be obtained via the iShares Europe ETF (ASX: IEU). This ETF provides exposure to a broad range of European companies across 16 major developed European markets. The fund tracks the performance of the S&P Europe 350 and has delivered a return of 21.32% in the year to 30 November. Distributions are made twice yearly and management fees are 0.60% per annum.

Across Europe, 26.45% of the funds securities are from the UK, 17.68% from France, 15.44% from Switzerland, and 13.58% from Germany. The remainder were spread across the Netherlands, Spain, Sweden, Italy, Denmark, Belgium, and other locales. Top holdings include Nestle (3.50%), Novartis (2.65%), Roche Holdings (2.45%), and HSBC Holdings (1.73%).

Income and defensive shares

Political uncertainty, economic slowdown, and recession fears mean safe stocks that pay reliable dividends could be in demand from investors seeking refuge in 2020. Quality, however, will be key. In 2019 we saw companies traditionally known for their dividend payments including National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) forced to cut dividends in the wake of disappointing earnings results and regulatory costs.

Investors seeking safety should consider companies that provide vital goods and services that are less likely to see a sudden drop in demand or be the target of political attacks. Large and diversified businesses that operate across multiple markets and/or geographies can offset weakness in one market or area with strength in another. Examples could include large pharmaceutical and healthcare providers such as CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC). Other potential dividend shares include health insurer Medibank Private Ltd (ASX: MPL), and energy provider AGL Energy Limited (ASX: AGL).

Digital dominance and the rise of AI

Bank of America has predicted that the current trade war between America and China will transition into a 'technology war' as the superpowers compete to reach technological superiority. Key areas of competition will include artificial intelligence and robotics, Cybersecurity, quantum computing, big data, and 5G.

According to Bank of America, China's annual mobile data traffic could grow at 56% compared to the 35% growth predicted for the United States. Combined with favourable policies and government backing, Chinese technology companies such as Alibaba and Tencent may be better positioned to take advantage of the artificial intelligence revolution, at the expense of United States FAANG stocks (Facebook, Amazon, Apple, Netflix, and Alphabet). In Australia, Appen Ltd (ASX: APX), which provides training data for machine learning, is well placed to take advantage of this trend.

Robotics and automation is another key theme to watch this in 2020, with the potential to jeopardise up to 50% of jobs worldwide by 2035. The ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO) provides exposure to this theme and tracks the ROBO Global Robotics and Automation Index. The ETF returned were 20.53% in the year to 30 November. Management fees are 0.69% per annum and distributions are made annually.

Holdings are distributed across the United States (44.2%), Japan (22.4%), Germany (9.1%), Taiwan (5.7%), Switzerland (3.4%), United Kingdom (3.3%), China (2.3%), Sweden (2.1%), France (2.0%), South Korea (1.7%) and elsewhere. Top holdings include Brooks Automation (1.84%), Zebra Technologies (1.75%), Krones AG (1.71%), Nvidia Corp (1.68%), Koh Young Technology (1.67%), Fanuc Corp (1.66%), Intuitive Surgical (1.63%), Congnex Corp (1.63%) and Daifuku Co Ltd (1.62%).

Emerging markets

According to Morgan Stanley, a better global growth outlook in 2020 may improve the performance of emerging market equities relative to 2019. For 2020, Morgan Stanley have raised their stance on emerging markets from underweight to equal weight, stating:

Emerging market equities typically perform better during periods of global economic re-acceleration and U.S. dollar weakness. As a result, our earnings forecasts suggest growth of 12% for emerging markets in 2020.

Australian investors can access emerging markets via the ASX using ETFs. The iShares MSCI Emerging Markets ETF (ASX: IEM) provides exposure to 800 plus large and mid-size companies in emerging markets. The fund tracks the performance of the MSCI Emerging Markets Index before fees and expenses. The ETF returned 13.95% in the year to 31 October. Management fees are 0.67% and distributions are made twice annually.

The fund held stocks across China (31.78%), South Korea (12.17%), Taiwan (11.88%), India (8.94%), Brazil (7.66%), South Africa (4.65%), Russia (4.09%), and elsewhere. Top holdings include Alibaba (4.49%), Taiwan Semiconductor Manufacturing (4.32%), Tencent Holdings (4.18%), Samsung Electronics (3.69%), and China Construction Bank (1.38%).

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) provides investors with exposure to more than 5,000 companies in emerging economies. The ETF tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with dividends reinvested) in Australian dollars before fees, costs and taxes. The ETF returned 26.04% in the year to 31 October. Management fees are 0.48% per annum and distributions are made quarterly.

Assets are spread across China (35.2%), Taiwan (14.7%), India (10.9%), Brazil (8.6%), and South Africa (5.3%). Top holdings include Alibaba (4.10%), Tencent Holdings (3.85%), Taiwan Semiconductor Manufacturing (2.46%), China Construction Bank (1.23%), Reliance Industries (1.06%), and Ping An Insurance Group Co of China.

Foolish takeaway

As uncertainty around Brexit and US–China trade tension recede, 2020 may be a year where sectors of the market neglected over the past few years come to the fore. Yet political ambiguity remains a concern for global markets, particularly in the US.

The post 4 investment trends for 2020 that you should know about appeared first on The Motley Fool Australia.