The ex-dividend date for this round of dividends is 3 July. Global X will pay investors on 17 July.

As is the case with other ETF providers this season, there are some whopper payments on the schedule.

The biggest dollar-value dividend is an incredible $16.26 per unit for owners of Global X Battery Tech & Lithium ETF (ASX: ACDC).

ACDC's mega dividend reflects the huge rebound in lithium prices over FY26.

Lithium commodity prices have soared due to renewed demand for batteries amid the global green energy transition.

As an example, the price of lithium carbonate has risen 148% in 12 months.

Lithium's rebound has translated into supercharged earnings for ASX and international lithium miners.

That's why ACDC ETF is paying out big this season.

Let's take a look.

Mid-year dividends for Global X ASX ETFs

Here is a sample of the estimated distributions to be paid by Global X this season.

Global X will confirm the final amounts on Thursday.

View a complete list of estimated Global X ETF dividends here.

Own other ETFs?

If you own Vanguard ETFs such as Vanguard Australian Shares Index ETF (ASX: VAS), see this season's estimated distributions here.

Invested in VanEck ETFs? View VanEck dividends here.

As for other mega dividends this season, find out which ETF is set to pay $18 per unit this season and why.

The post Own FANG, WIRE or SEMI ETF? Global X just revealed your next dividend appeared first on The Motley Fool Australia.

When these targeted themes rally, investors can capture market-beating returns. 

However, on the flip side, when these sectors face headwinds, losses can also be amplified. 

Due to geopolitical tension, rising interest rates, and other economic factors, sectors like healthcare and technology have been heavily sold off in 2026.

There are several ASX ETFs that target these sectors. 

After falling significantly this year, let's look at funds that could be undervalued right now. 

Morningstar Global Technology ETF (ASX: TECH)

This ASX ETF seeks to invest in companies well-positioned to benefit from increased technology adoption. 

This includes companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

At the time of writing, it includes 38 holdings, with a 60% exposure to US-based companies. 

So far in 2026, it has fallen 14%. 

However, it appears it has slowly started to turn the corner, recovering 8% during April. 

It may suit investors who are confident of a global tech rebound in the back half of 2026. 

BetaShares Global Cybersecurity ETF (ASX: HACK)

It has been a similar story in 2026 for this ASX ETF. 

The 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.

It is down 16% so far in 2026, however has also rebounded in April, rising 5% just this week. 

At the time of writing, the fund includes 42 holdings, with 90% of its weighting towards US-based companies. 

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

Moving towards Australian technology, this ASX ETF is surging today, up 4%. 

It still has a long way to go to recover the losses of 2026, as the fund remains down 16% since the start of the year. 

As the name suggests, it provides exposure to leading ASX-listed companies across a range of tech-related market segments, including information technology, consumer electronics, online retail, and medical technology.

Vaneck Vectors Global Health Leaders ETF (ASX: HLTH)

Moving to healthcare, this ASX ETF focuses on the largest international companies from the global healthcare sector.

It includes 50 underlying holdings with a 60% weighting towards US-based companies. 

In 2026, it has fallen almost 7%, but has also begun to rebound from late March. 

The post ASX ETFs to target if you expect struggling sectors to rebound appeared first on The Motley Fool Australia.

Global technology shares have suffered due to AI integration and replacement fears.

Meanwhile, healthcare has also lagged, potentially due to investors shifting into sectors with clearer near-term growth catalysts.

However, this recent weakness may now mean these sectors trade at a valuation discount to the broader market. 

If you are optimistic on the long-term growth of technology or healthcare shares, here are some ASX ETFs to consider. 

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

Technology shares are largely underrepresented in Australia compared to dominant sectors like big banks and miners.

Many Australian tech companies have endured heavy sell-offs due to fears that AI could cut into core products. 

This has led to many positive ratings from brokers, suggesting these companies have now been oversold.

The Betashares ATEC fund combines many of these Aussie tech companies into one ASX ETF. 

It provides exposure to approximately 47 leading ASX-listed companies across a range of tech-related market segments, including information technology, consumer electronics, online retail, and medical technology.

It is down 20% year to date. 

Global X Morningstar Global Technology ETF (ASX: TECH)

For a more global exposure to technology shares, this fund offers exposure to companies based in the United States, Europe, and Asia. 

It targets companies positioned to benefit from increased technology adoption, including those whose principal business is offering Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

The fund has fallen almost 17% year to date. 

BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)

Global healthcare shares have also had a soft start to 2026. 

For investors looking to target a defensive sector, this ASX ETF provides exposure to the largest global healthcare companies (ex-Australia), hedged into Australian dollars.

At the time of writing, it comprises 60 underlying holdings, which could benefit in the long term due to ageing populations, rising living standards, and ongoing medical advancements. 

These are expected to support increasing ongoing demand for healthcare products and services.

The fund is down 2.5% since the start of the year. 

iShares Global Healthcare ETF (ASX: IXJ)

This fund aims to provide investors with the performance of the S&P Global 1200 Healthcare Sector Index. 

It offers a more diversified option for global healthcare stocks.

This index is designed to measure the performance of global biotechnology, healthcare, medical equipment, and pharmaceutical companies and may include large, mid, or small-capitalisation stocks.

The fund has fallen more than 7% so far in 2026. 

The post ASX ETFs that target undervalued sectors appeared first on The Motley Fool Australia.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) index fell another 4.7% yesterday.

It is now down 18.59% year to date (YTD) and nearly 30% in the past 12 months. 

Notable ASX technology shares that have been heavily sold off include: 

• WiseTech Global Ltd (ASX: WTC) down almost 26% YTD
• Life360 Inc (ASX: 360) down 37% YTD
• Megaport Ltd (ASX: MP1) down nearly 36% YTD. 
  

Is the AI replacement fear real?

Much of this Australian tech sell-off has been driven by a growing fear that companies could have their core services replaced by AI. 

Many Software as a Service (SAAS) companies earn a profit through subscriptions, paid services etc. 

Should consumers be able to access similar, or even better services with more efficient AI tools, it would likely impact the earnings of these companies. 

The challenge investors face in the short-term is identifying which companies are realistically going to be impacted, and which are going to adapt. 

An important consideration is that some companies could be set to benefit exponentially from AI integration.

A new report from Vanguard provided an in-depth analysis of how this could play out in the long-term. 

So while some AI technology shares might be seriously challenged, others are at an all-time value due to misplaced fear.

Aussie tech vs US tech

A key distinction that investors need to understand is the difference between ASX technology industry and global tech. 

Largely, the ASX is underweight towards technology shares. 

Instead, it is dominated by traditional sectors such as mining, energy, and financials. Together, these make up the bulk of its market capitalisation. 

Additionally, the tech sector here in Australia is heavily skewed toward software-as-a-service (SaaS) companies. 

Many of these firms are cloud software providers, focusing on recurring subscription-based business models rather than hardware or consumer electronics. 

This contrasts sharply with the tech composition of the S&P 500, which is dominated by large-cap, diversified technology giants such as Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA). 

How to target these companies

If you are bullish on an Australian tech revival, you can scoop up companies trading at relative lows like WiseTech, Life360 or Megaport. 

Price targets via TradingView indicate these stocks are now oversold. 12 month price targets suggest upsides between 70% and 97%.

However another option is to invest in an ASX ETF like Betashares S&P ASX Australian Technology ETF (ASX: ATEC). 

It provides exposure to just under 50 ASX shares in the sector. 

The fund is down 18% year to date, providing a relative value for those expecting Australian tech stocks to recover. 

Alternatively, if investors are looking to avoid ASX technology stocks, and buy the dip on global tech shares, two funds to consider are: 

• Global X Morningstar Global Technology ETF (ASX: TECH) – invests in companies positioned to benefit from the increased adoption of technology, including Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.
• Global X FANG+ ETF (ASX: FANG) – Includes just 10 companies at the leading edge of next-generation technology targeted for global tech/growth potential.

The post Have ASX technology shares finally hit rock bottom? appeared first on The Motley Fool Australia.

Global risk-off sentiment and a renewed reassessment of the technology sector have weighed heavily on growth-oriented names.

A major driver has been investor concerns about artificial intelligence (AI).

Rather than being a clear catalyst for growth, fears that rapid AI advances could disrupt traditional software business models have prompted revaluation and selling in software and SaaS stocks, with markets questioning future demand and pricing power. 

In fact the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 43% over the past six months.

Big companies that have been largely sold off in 2026 include: 

• TechnologyOne Ltd (ASX: TNE) is down 22% YTD 
• Xero Ltd (ASX: XRO) is down 30%
• Life360 Inc (ASX: 360) has fallen 28%
• SiteMinder Ltd (ASX: SDR) has dropped by 38.5%. 
• WiseTech Global Ltd (ASX: WTC) is 31% lower YTD. 

What are experts saying?

It's very reasonable that investors don't want to tie themselves to a sinking ship. 

But is the technology industry really going down?

Bear markets don't last forever, and many experts are reinforcing this panic isn't being driven by sound logic.

Research from J.P. Morgan Private Bank describes this as "broken logic" and says, "the market is selling indiscriminately."

Analysis from Wilsons Advisory also suggested the doom and gloom around these stocks is overblown. 

Whilst holders of these stocks might need an iron will to endure these difficult times, prospective buyers should be rejoicing in the opportunity. 

It can be challenging to sift through these companies and decide on a case-by-case basis if the outlook is positive, and core business a safe choice.

One strategy to take advantage of this crash is to consider technology exposed ASX ETFs. 

Here are a few to consider. 

Buyers should be aware that these funds could certainly keep falling in the near term before things get better. 

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

Unsurprisingly, this fund is down roughly 20% year to date. 

It includes 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.

Global X Morningstar Global Technology ETF (ASX: TECH)

This fund focuses on global technology companies rather than just ones here in Australia. 

It targets companies positioned to benefit from the increased adoption of technology. 

This including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

It's important to mention this might not suit investors who are bearish on the future of SaaS companies due to AI influence.

Global X FANG+ ETF (ASX: FANG)

This ASX ETF is focussed on companies at the leading edge of next-generation technology that includes household names and newcomers.

It only includes 10 underlying holdings that are targeted for global tech/growth potential. 

It is down 16.5% year to date. 

The post 3 ASX ETFs to target if you anticipate a tech turnaround  appeared first on The Motley Fool Australia.

Investing in hundreds or even thousands of companies at once can help smooth out market volatility. 

However with the rise of thematic ETFs, even successful funds can be exposed to market dips. 

The following three funds have had a successful track record of returns, but underperformed last year relative to historic performance.

This could make them attractive investment options at current prices. 

Etfs Morningstar Global Technology ETF (ASX: TECH)

This ASX ETF targets companies positioned to benefit from the increased adoption of technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

Since its inception in 2017, the fund has risen more than 100%. 

This includes almost 8% p.a. returns over the last 5 years. 

This hasn't come without years of volatility.

It is down 10% over the last 12 months. 

With that in mind, this fund has exposure to sectors that are paramount to the growth of technology and cloud computing.

These include semiconductors, software and electronics. 

At the time of writing, it includes 38 underlying holdings, with its largest geographical exposure being to: 

• United States (60.76%)
• Netherlands (8.90%)
• Germany (6.65%)

Betashares India Quality ETF (ASX: IIND)

Another thematic fund with a good track record, but a down year is the Betashares India Quality ETF. 

As the name suggests, it targets high quality Indian companies. 

According to Betashares, it includes 30 high quality Indian companies based on a combined ranking of the following key factors: high profitability, low leverage and high earnings stability.

The thematic nature of this fund means it relies on the performance of the Indian economy. 

However despite falling more than 5% over the last year, its long-term prospects are intriguing. 

India's economy is one of the fastest-growing in the world, with future growth potential underpinned by strong structural fundamentals.

India is expected to remain among the best performing economies globally; the IMF forecasts GDP to expand 6.4% p.a. in the next year. 

Furthermore, this fund has actually already shown a strong track record. 

It has risen 60% since March 2020. 

iShares International Equity ETFs – iShares S&P Small-Cap ETF (ASX: IJR)

As the name suggests, this fund focuses on small-cap US stocks. 

According to iShares, it tracks the performance of the S&P Small-Cap 600, before fees and expenses. The index is designed to measure the performance of small-capitalisation US equities.

In the last 12 months it only rose 1%. 

However it has an average annual return of 10% over the last 5 years. 

The post 3 undervalued ASX ETFs with proven track records appeared first on The Motley Fool Australia.

These centred around sectors like financials and real estate that had a slow second half of the calendar year. 

As the year comes to a close, I am continuing my search for funds that underperformed this year. 

While past performance isn't a guarantee of future performance, these funds had a strong track record of bringing investors strong returns. 

With that sentiment in mind, here are two more ASX ETFs that have fallen below historical performance in 2025. 

VanEck Msci International Small Companies Quality ETF (ASX: QSML)

This fund gives investors a diversified portfolio of 150 international developed market small-cap quality growth securities.

The success of small-cap companies has been an emerging story in 2025. 

Data shows attention is increasingly shifting to smaller and mid-sized companies.

These can offer potential for outsized growth and portfolio broadening. 

This fund may be set to catch these tailwinds in the next 12 months. 

According to VanEck, this fund focuses on quality small companies that have delivered outperformance over the long term relative to other global small companies benchmarks and also relative to large- and mid-cap benchmarks.

In 2025, the fund has risen a modest 4.9%. 

However historically, it has brought returns of more than 11% per annum including dividends. 

The fund was first listed in early 2021. 

The fund is largely weighted towards US securities, with almost 80% of the underlying holdings being US companies. 

By sector, its largest exposure is to: 

• Industrials (38.2%)
• Financials (18.9%)
• Information Technology (12.1%)

Global X Morningstar Global Technology ETF (ASX: TECH)

According to Global X, this ETF seeks to invest in companies positioned to benefit from the increased adoption of technology. 

This includes companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

At the time of writing, it is made up of 39 underlying holdings. 

Its largest exposure is to companies focussed on: 

• Software (34.4%)
• Semiconductors and semiconductor equipment (21.1%)
• Financial services (12.4%)

It is heavily weighted towards US companies, with more than half its portfolio being US based holdings. 

So far in 2025, it has fallen more than 8%. 

However in the last 5 years, it has a p.a. return of 8.45%. 

With global investment in these booming sectors continuing, there's good reason to believe in a bounce back for this fund in 2026. 

The post Two ASX ETFs I'm targeting for a bounce back next year appeared first on The Motley Fool Australia.

As many investors are aware, the S&P/ASX 200 Index (ASX: XJO) is highly concentrated on lower growth, blue-chip companies. 

In particular, financials and resource/mining companies dominate the economy. 

Conversely, Aussie tech only represents 3% of the weight of the ASX 200. 

However, over the next two years, the companies in the S&P/ASX All Technology Index (ASX: XTX) are expected to grow earnings above 25%. 

According to Betashares, this is projected to outpace the ASX 200 by three times. It is also projected to grow at a higher rate than the US IT sector. 

Aussie tech quietly growing

Many investors tend to look overseas to gain exposure to technology markets. 

However, domestically, Aussie tech companies are posting strong growth. 

According to Betashares, from the end of FY23 to FY25, earnings at the ASX 200 level fell 13%. 

This is in stark contrast to the remarkable growth experienced in the US, led by mega-cap technology companies.

However, this underwhelming headline for the ASX 200 perhaps hides the strong pockets of growth. 

The Australian Information Technology (IT) sector has achieved a higher rate of earnings growth than its S&P 500 counterpart over this same two-year period.

In FY25, the Australian IT sector grew earnings by a commendable 26.4%, trailing only the complementary Communication Services sector.

ASX ETFs to cash in

For investors bullish on adding a magnified exposure to these Australian tech companies, there is one focused ASX ETF to consider. 

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

The fund includes 45 holdings, including ASX shares such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Pro Medicus Ltd (ASX: PME).

It has posted strong gains over the last year, rising more than 14%. 

For investors interested in more global tech exposure, other options include: 

• Morningstar Global Technology ETF (ASX: TECH) – Includes 40 global holdings positioned to benefit from the increased adoption of technology. 
• Global X Artificial Intelligence ETF (ASX: GXAI) – Seeks to invest in companies that potentially stand to benefit from the further development and utilisation of artificial intelligence (AI) technology in their products and services.

The post Consider this ASX ETF to cash in on the growth of Aussie technology  appeared first on The Motley Fool Australia.

But let's talk about four popular ASX tech exchange-traded funds (ETFs) that are going the other way today.

First up is a popular ASX tech ETF in the BetaShares Nasdaq 100 ETF (ASX: NDQ). NDQ units have now dipped into red territory, down 0.04% for the day thus far at $47.87 each. However, this morning, we saw those same units push into new record territory, minting a fresh new all-time high of $47.97.

Then we have the Global X FANG+ ETF (ASX: FANG). FANG units are comfortably in green territory at present, enjoying a 0.99% rise to $29.61 each. But earlier this morning, those units pushed as high as $29.72, also a new record high for this fund.

It's been a similar story for the BetaShares Global Cybersecurity ETF (ASX: HACK). HACK units are also currently in the green, up 0.6% at $13.45 each. But earlier in the session, those units went as high as $13.49, which, you guessed it, is a new record high for this ASX tech ETF.

Finally, let's discuss the Global X Morningstar Global Technology ETF (ASX: TECH). TECH units are having a blinder today. This fund is currently enjoying a 1.14% boost up to $110.35 a unit. However, this morning saw this ETF push as high as $111.35. Once more, that's a new all-time record for the Global Technology ETF.

Why are these ASX tech ETFs hitting new highs today?

It might seem strange that these ETFs are all hitting new records on such a nasty day for the ASX 200. But there is a simple explanation: None of these ASX tech ETFs actually track ASX shares or the Australian markets at all.

Starting with NDQ, this EASX tech ETF is an index fund that tracks the American NASDAQ-100 Index (NASDAQ: NDX). This index reflects the value of 100 of the largest stocks listed on the US Nasdaq stock exchange, which houses almost every major US tech company from Apple, Alphabet, and Microsoft to PayPal, Airbnb, and Netflix.

With the Nasdaq 100 sitting very close to its all-time highs and the Australian dollar falling in value against the US dollar (raising the value of US assets in our local currency), it's not too surprising to see this ETF where it is today.

It's a very similar story with the FANG+ ETF. This ASX tech ETF is not an index fund, holding 10 top US shares. But these also happen to all be tech stocks, consisting of the 'magnificent seven' tech giants like Amazon, Tesla and NVIDIA, as well as CrowdStrike, ServiceNow and Broadcom. As such, FANG will be benefitting from the same tailwinds as NDQ today.

The same can also be said of the Global X Morningstar Global Technology ETF. This fund holds a more diversified portfolio of global tech stocks, including Salesforce, Lyft, Block and Uber. Spurred by the performance of the largest tech stocks that we've already discussed, the entire US tech sector is on a roll right now, so again, it's not too shocking to see this ASX tech ETF get another push from investors this Wednesday.

Cybersecurity shares aren't left out

Finally, we see much of the same catalysts influencing the Betasahres Global Cybersecurity ETF today. This ETF holds a portfolio of global companies that are all big players in the cybersecurity market.

While HACK holds stocks from a range of different countries, American companies still dominate its holdings at around 80% of the HACK portfolio. Some of this ASX tech ETF's top holdings include CrowdStrike, Palo Alto Networks and Fortinet.

As such, it's clear that the same tailwinds that are lifting the above ETFs are at play with this one, too.

The post 4 popular ASX tech ETFs smashing new all-time highs today appeared first on The Motley Fool Australia.

I am attracted to companies with high margins that grow revenue rapidly because of how quickly the bottom line can improve.

The ASX has several quality technology companies, such as TechnologyOne Ltd (ASX: TNE) and REA Group Ltd (ASX: REA). However, they are just a small part of the global technology scene.

A few ASX ETFs can provide compelling exposure to certain areas of the tech space that are very different to the banking and mining companies the ASX is known for. I think that's good for diversification.

Betashares Global Cybersecurity ETF (ASX: HACK)

The HACK ETF provides exposure to leading listing businesses around the world from the global cybersecurity sector.

Companies in the portfolio include Crowdstrike, Cisco Systems, Broadcom, Palo Alto Networks, Infosys, Leidos, Cloudflare and Okta.

With cybercrime on the rise, ETF provider Betashares expects the demand for cybersecurity services to grow strongly for the foreseeable future.

According to the 2023 ASD Cyber Threat Report, in Australia, the average cost of cybercrime per report increased by 14%, with the average cost for a small business being $46,000. The report also noted that the number of cybercrime reports reached 94,000, up 23% year over year.

As the world becomes increasingly digital, more people and businesses around the world will need defence against cybercrime, with particular security needed for banking, e-commerce, government services and so on.

Past performance is not a reliable indicator of future performance, but over the past five years, the HACK ETF has returned an average of 16.4% per annum.

Global X Morningstar Global Technology ETF (ASX: TECH)

This globally-focused ETF looks to invest in companies positioned to benefit from the increased adoption of technology, including businesses that offer software, platform and digital infrastructure services.

The ETF provider Global X notes that internet-enabled devices continue to expand to new categories, allowing manufacturers to monitor and service products through software upgrades.

While 77% of the portfolio is invested in US-listed businesses, other countries with a weighting of more than 1% including the Netherlands, Japan, Canada, Germany, Israel and Switzerland.

The TECH ETF portfolio has more than 30 positions, some more recognisable than others. Salesforce, Autodesk, Shopify, Vontier, Block, Cognizant, Lyft, and Workday are among the companies with a weighting of more than 4% in the fund.

Over the past five years, this ASX ETF has returned an average of 13.9% per annum.

The post Looking for diversification through ASX ETFs? I'd buy these 2 appeared first on The Motley Fool Australia.

By comparison, there are almost 100 fewer ETFs or funds based on Australian equities (156 in total).

There has been an explosion in the number of ASX ETFs on the market in recent years as investors embrace the opportunity to buy into a fund online via their usual trading platform.

In one trade, you can gain exposure to a basket of shares for just one brokerage fee. Easy.

But what type of ETF do you want to buy?

In this article, we're going to narrow our focus to sector-based ASX ETFs that invest in global shares.

The pros and cons of sector-based investing

The benefit of sector-based investing is you can invest in one type of industry that you understand well, or perhaps one that is serving an emerging long-term need in the economy, like cybersecurity.

The risk is you may encounter sector-specific headwinds that can affect your portfolio's performance. (Imagine owning an ETF full of travel shares in early 2020.)

You can spread your risk by investing in global equities ASX ETFs instead of just ASX shares ETFs.

This way, you'll gain exposure to more companies and achieve some geographical diversification. This is very handy because it reduces the impact of government decisions on your investment portfolio.

An example is new taxes, such as the Minerals Resource Rent Tax introduced in Australia in 2012.

So, which global sectors are attractive options?

This is what we seek to uncover in this article by showing you the best-performing sector-based global equities ASX ETFs over the past five years.

The top 6 global sector ASX ETFs over 5 years

Of course, past performance is no guarantee of future performance. But this data gives us an insight into the sectors that are hot right now and delivering consistently higher returns than other sectors.

This data has been published by the ASX this month and incorporates the five years to 31 August 2023.

Here are the top six sector-based global equities ASX ETFs over the past five years:

Global X Battery Tech & Lithium ETF (ASX: ACDC) returned an average of 17.66% per annum. This includes reinvested dividends, which have historically averaged a yield of 3.53%.

Global X Morningstar Global Technology ETF (ASX: TECH) returned an average of 13.63% per annum. This includes reinvested dividends, which have historically averaged 0.48%.

Betashares Global Cybersecurity ETF (ASX: HACK) returned an average of 13.25% per annum. This ASX ETF does not pay dividends.

VanEck Gold Miners ETF AUD (ASX: GDX) returned an average of 12.96% per annum. This includes reinvested dividends, which have historically averaged 2.03%.

Betashares Global Gold Miners ETF-Currency Hedged (ASX: MNRS) returned an average of 12.88% per annum. This includes reinvested dividends, which have historically averaged 1.01%.

iShares Global Healthcare ETF AUD (ASX: IXJ) returned an average of 10.73% per annum. This includes reinvested dividends, which have historically averaged 1.28%.

Can you see the trends?

As you can see from our list, the best-performing sector-based ASX ETFs are those reflecting current trends and macroeconomics.

Let's review.

At the top of the list, we have a battery technology and lithium ETF. This reflects the world's transition to clean energy and the creation of a brand-new industry in electric vehicles powered by lithium batteries.

Tech stocks are strong performers because of the world's continuous technological advancement.

Cybersecurity risk has been a challenge that has come along with it, raising demand for security systems.

Investing in gold is a traditional safe haven strategy during times of economic upheaval.

Healthcare stocks are seen as defensive shares, which historically have performed better than other shares during high inflation and cost of living challenges.

More about the No. 1 ETF

The ACDC ETF provides an opportunity to invest in the global economic thematic of energy transition.

It holds 32 Australian and international shares representing the entire lithium cycle. That means it's not just full of lithium mining shares; it's also got electric car manufacturers and battery makers in the mix.

The top five holdings are Tesla Inc 6.02%, Nissan Motor Co Ltd 4.51%, Panasonic Holdings Corp 4.36%, EnerSys 4.25%, and Renault SA 4.21%.

Examples of Australian mining shares held within the ACDC ASX ETF are Allkem Ltd (ASX: AKE), Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), and Core Lithium Ltd (ASX: CXO).

ACDC ASX ETF is an actively managed fund with an annual management fee of 0.69%.

The post Which global sector ASX ETFs have delivered the best returns over 5 years? appeared first on The Motley Fool Australia.

However, there's a couple of segments that have been surging since the March bear market. Among those are tech and gold but investors don't know where to place their bets given current uncertainty.

Here's why one ASX tech ETF could be the answer to capturing more upside in 2020.

Why this ASX tech ETF can track the market higher

I think the "two-speed" economy we're seeing is a big factor here. A broad market ETF can be great for diversification and peace of mind.

However, a sector-focused ETF like ETFS Morningstar Global ETF can be a useful part of tactical portfolio allocation.

It is still a broad fund with 34 holdings including some of the biggest tech shares on the market. Among the top 10 holdings are industry leaders like Microsoft Corp (NASDAQ: MSFT) and salesforce.com (NYSE: CRM).

That's good news for investors seeking easy exposure to the surging international tech stocks. 

I think this ASX tech ETF provides broad exposure to the industry without needing to bet on individual companies.

What's not to like?

For one, investing in this ASX tech ETF means you're expecting tech to continue to outperform. The tech sector is hot right now and will likely see further growth, but much of that is already priced in.

For instance, the Xero Limited (ASX: XRO) share price trades at a price to earnings (P/E) ratio of 4,700. That means a lot of that expected earnings growth is already factored into market values.

On an ETF specific level, the ETFS Morningstar Global ETF does come at a cost. The management fee is a lofty 0.45% per annum according to the fund's website.

That may not seem like much, but it does add up over time compared to some funds charging as little as 0.07% per annum.

There's also currency risk to consider. This ASX tech ETF is unhedged which could be good or bad, but leaves you exposed to currency risk which could eat into gains.

Foolish takeaway

If you're after a globally diversified ASX tech ETF, I think this ETF Morningstar fund is a good option.

It's not without its drawbacks, but it could be an easy option for investors with FOMO on the tech sector bull run.

The post Why this ASX tech ETF can ride the market gains higher appeared first on The Motley Fool Australia.

The March bear market threw a real spanner in the works for investors. New investors, in particular, can be the first to head for the exits when their investments are falling.

That means now could be a good time to re-evaluate your investing strategy. Let's say, hypothetically, that you've got an initial sum of $20,000 to invest in the share market and are looking at a long-term investment horizon of 20 years. Here's how I would invest $20,000 for 20 years in ASX shares.

How to invest $20,000 for 20 years in ASX shares

Well, $20,000 is a lot of money, but you really want to be able to grow that number over time by investing it into the share market. But every time you buy and sell ASX shares there are costs associated, like brokerage fees and taxes.

I would lean towards investing your first $20,000 in a diversified exchange-traded fund (ETF), as ETFs can provide instant diversification with very low management fees.

If you just want to passively track the Aussie share market, a low-cost ETF like Vanguard Australian Shares Index ETF (ASX: VAS) is a good option.

Vanguard Australian Shares Index ETF seeks to track the S&P/ASX 300 Index (ASX: XKO) and currently holds 306 securities. That's a good chunk of the total share market if you want a passive investment in ASX shares.

It's not just broad market indexes that you can invest in. If you want targeted exposure, you could try a sector or industry-specific index like ETFS Morningstar Global Technology ETF (ASX: TECH).

This allows you to get broad exposure to ASX (and international) tech shares without betting on individual companies straight away.

Buying shares in these sorts of ASX ETFs can provide diversified exposure to a whole host of underlying companies.

But how does it work in practice?

Let's use the Vanguard Australian Shares Index ETF as an example.

Since its inception, this fund has returned an average of 8.18% on an annualised basis.

Let's see what happens if we invest $20,000 at 8.18% per year for 20 years:

As the graph above indicates, that initial capital would grow to be worth a handy $96,376 by the end of a 20-year period.

The story is even better if you make some additional contributions along the way. So, if you invested an additional $1,000 per year, that original $20,000 investment would grow to be worth $143,060 across a 20-year investing horizon.

Of course, this is before you take into account inflation and what $96,376 or $143,060 would buy you in 20 years. However, the proof is in the pudding that investing in ASX shares for the long-term can pay dividends.

Can I only achieve this with ETFs?

Not at all! In fact, many investors would have already seen some strong gains this year. In particular, those who purchased ASX shares in mid-March would have picked some absolute winners.

Aside from Afterpay Ltd (ASX: APT), other top performers include A2 Milk Company Ltd (ASX: A2M) and Fortescue Metals Group Limited (ASX: FMG).

Picking high-quality companies and investing with a long-term view is the key. With a strong investment strategy and a touch of good fortune, you may well have more than $96,376 or $143,060 in 20 years' time.

The post How to turn $20,000 into $100,000 with ASX ETF shares appeared first on The Motley Fool Australia.

To the inexperienced investor, the March bear market made for scary viewing. In fact, even experienced investors were spooked amid unprecedented market volatility.

While it's good to buy undervalued ASX shares, you don't want to fall into the trap of market timing. After all, 'time in the market is better than timing the market', as the saying goes. 

That's where a DCA strategy can come into your investment plans and help you think long-term.

What is dollar-cost averaging?

According to Vanguard Australia, DCA is "investing the same amount of money at set intervals over a long period – whether market prices are up or down".

Essentially, dollar-cost averaging is the opposite of market timing. Obviously, ASX share prices will fluctuate over time. The good news is that if you're using DCA to your advantage, you can buy more shares at cheap prices.

For instance, let's say you invested $1,000 per month in Afterpay Ltd (ASX: APT) shares. When the Afterpay share price was trading at $40.50 per share in February that would net you 24 shares.

However, when the ASX tech share fell to its 52-week low of $9.99 in March, that same $1,000 would buy you 100 shares.

Is now a good time to dollar-cost average into ASX shares?

The simple answer is yes, it's always a good time to DCA into ASX shares.

The whole point of dollar-cost averaging is to ignore market timing. By definition, if you pick and choose when to DCA, you are going against that whole philosophy.

Of course, what you invest in is a whole separate issue. You could continue to buy beaten-down ASX shares like Star Entertainment Group Ltd (ASX: SGR).

However, DCA is more common with passive investors looking to track an index like the S&P/ASX 200 Index (ASX: XJO). Where active investors like to buy undervalued companies, passive investors trust that the market will win in the long run.

A couple of classic broad market ETFs that you could deploy a DCA strategy into are BetaShares Australia 200 ETF (ASX: A200) or Vanguard Australian Shares Index ETF (ASX: VAS).

ETFs don't just have to track the whole market. For instance, the ETFS Morningstar Global Technology ETF (ASX: TECH) provides exposure to global technology companies and could be a good option for a DCA strategy in a tech-focused portfolio.

Foolish takeaway

Using DCA can be a powerful strategy for both your own thinking and your investments. Rather than panicking in a bear market, you can think of it as a fire sale on your favourite ASX shares.

That means you can sit back, relax and enjoy the long-term investment journey.

The post Is it time to dollar-cost average into ASX shares? appeared first on The Motley Fool Australia.

Whether it's Zip Co Ltd (ASX: Z1P) or Xero Limited (ASX: XRO) making new all-time highs, or Afterpay Ltd (ASX: APT) teaming up with Chinese tech giant Tencent Holdings, there has certainly been a lot of buzz in this sector.

This wouldn't have been hurt by the fact that ASX tech shares have been amongst some of the best performers since the ASX 200 bottomed out in late March. For example, Afterpay shares have risen more than 800% since 23 March. The Zip share price is also up around 400% over the same period.

We saw a similar pattern over on the US markets. Growth and tech stocks like Tesla, Amazon, Apple, Microsoft and Square have soared since March. Tesla is up around 333% in the last 4 months, whilst Amazon has gained nearly 90% (an incredible move for a US$1 trillion+ company) and Square is up ~233%.

But these kinds of moves tend to get investors' blood boiling – and not in a good way. According to reporting in the Australian Financial Review (AFR), money is pouring into tech-themed exchange-traded funds (ETFs), both in Australia and around the world.

Are tech stocks in a bubble?

This has been fuelled by the FOMO-inducing performances of the companies above and others – and investors have noticed. For example, the ASX tech-tracking BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) is up nearly 90% from 23 March, largely due to the Afterpay share price.

The ASX ETF that tracks the US tech-heavy NASDAQ index – the BetaShares Nasdaq 100 ETF (ASX: NDQ) – has also been a winner for ASX investors, climbing 27% since 23 March to a new record high of $25.97 just yesterday.

As has the more globally focused ETFS Morningstar Global Tech ETF (ASX: TECH), also up 27% over the same period.

This stellar and rapid performance has got some investors worried though.

This is some of what the AFR had to say:

"If history is any guide, the tech ETF boom has two inevitable consequences: retail investors joining the tech party too late and getting burned, and issuers launching tech funds to meet demand."

The AFR also quotes Chris Brycki, CEO of Stockspot:

"History shows the worst time to buy a thematic ETF is when a lot of products get issued in a hot market. Investors want tech and issuers are happy to 'feed the ducks when they are quacking'… With hindsight, tech ETFs were a great investment a decade ago. It is hard to argue they are as attractive now. Apple and other trillion-dollar tech giants might maintain their growth rates, but it is much harder from here. Most people buying tech shares today are doing so because they have done well in the recent past, which is not a sound strategy."

Foolish takeaway

It's hard to argue with these sentiments in my view. There will be some exceptions of course, but I do think that most tech stocks are getting into 'exuberant' territory at their current pricing levels. No one wants to call time on a raging party, but it has to end at some point. And you don't want to be left without a seat when the music does stop.

The post Are ASX tech shares in a bubble? appeared first on The Motley Fool Australia.

To further complicate things, not only is it a question of which company to invest in, but which country. With the US markets producing some of the world's most well-known tech companies, it seems like an easy choice to look overseas for returns.

However, as an Aussie investor, this is easier said than done, particularly if you are trying to invest in multiple countries or gain access to multiple exchanges. But putting tech in the 'too hard' basket can mean missing out on staggering returns overseas.

In my view, the solution lies in a global tech exchange-traded fund (ETF):

Morningstar Global Technology ETF (ASX: TECH)

With a ticker like 'TECH', this one should be easy to remember. In my opinion, Morningstar have done a great job putting this fund together and I really like the global exposure. Although there are alternative tech ETFs on offer, this one is top of my list.

Country allocation

At the time of writing, the fund's global allocation is: USA (74.1%), Germany (7.1%), Switzerland (6.2%), Israel (4.1%), Japan (3.8%), Hong Kong (2.4%) and France (2.2%) approx. This is a great spread and really provides that global exposure investors need for the tech industry.

Top 10 holdings

At the time of writing, TECH's top 10 holdings include: Infineon Technologies (5.0%), Splunk Inc (4.4%), STMicroelectronics (4.4%), Microchip Technology Inc (4.3%), Nice Ltd (4.2%), Broadcom Inc (4.1%), Microsoft Corp (4.0%), Servicenow Inc (4.0%), Zendesk Inc (3.9%) and Guidewire Software (3.9%).

Performance

The fund's 3-year return at the time of writing clocks in at around 24% per annum and its 3-month return sits at approximately 17%. That's nothing to sneeze at, considering the current state of the economy. Compared with the S&P/ASX 200 Index (ASX: XJO), which has delivered a 3-year return of just over 4% and a 3-month return of around 10%. I could also provide comparisons to multiple overseas markets, however the value of adding this particular ETF to your portfolio is global diversity and exposure to tech outside of Australia, so it's pertinent to provide an ASX 200 comparison.

Fees

Something to be aware of with most ETFs is that they have annual fees. TECH has annual management costs of 0.45%. According to CommSec, ETFs on the ASX can range in fees from 0.1% to 1% per year, which puts TECH roughly in the middle as far as costs go. 

Trading and investing

Buying and selling ETFs is done in the same way as regular shares, directly through your chosen broker. Simply search for the ETF using the ticker above.

Foolish takeaway

The returns that tech shares can provide are staggering at times. With our world evolving and becoming more digital in nature by the day, I feel that tech shares should form a part of all portfolios, however, choosing the right ones can be both daunting and expensive.

Investing through ASX ETFs such as TECH means exposure to global tech players. Over multi-year periods, compounded returns in tech ETFs can be hard to beat – and you never know, your ETF might just catch the next Amazon!

The post The ASX tech ETF you can buy and hold forever appeared first on The Motley Fool Australia.

While the S&P/ASX 200 Index (ASX: XJO) has slumped more than 10% lower this year, NextDC shares have rocketed 73% higher.

Some investors might think they've missed the boat on the Aussie data centre operator. Here's why I think NextDC and 2 more ASX tech shares could actually be in the buy zone.

Why I think NextDC has more growth left in it

I think it's worth mentioning that most tech shares are going to be trading at high price-to-earnings (P/E) ratios. That's because investors are paying handsomely today for future expected growth.

For instance, NextDC reported revenue of $97.7 million in its February half-year results, but a net loss after tax of $4.9 million. That's not unusual when investing in ASX tech shares. Despite this, I believe there is strong potential – I like NextDC for its strong revenue growth projections and increasing demand for data storage and security.

Cybersecurity and off-site data storage are two looming issues for Aussie businesses over the next decade or two. I think NextDC is already somewhat ahead of the curve with established sites across Melbourne, Sydney, Brisbane, Perth and Canberra.

A recent company update also indicated strong contracted commitment options after winning several material customer contracts in New South Wales. That caught the eye of leading broker Goldman Sachs which upped its price guidance for the NextDC share price to $11.10 per share. NextDC has already smashed through that target, with shares up to $11.34 today at the time of writing.

Clearly, there is strong momentum behind the ASX tech share right now. Given its significant expansion plans and growth potential, I think NextDC's value may continue to climb higher. 

2 more ASX tech shares I'd like to buy today

It's not just NextDC shares I've got my eye on. Despite climbing 16% higher this year, I like the look of Xero Limited (ASX: XRO) shares.

Xero offers a cloud-based accounting software platform for small and medium-sized businesses. That's a particularly in-demand area at the moment given complexities around small business accounting amid the coronavirus crisis.

While the government stimulus programs have helped prop up the economy, it has also created a few headaches for small business accountants. That's where Xero can continue to innovate and make the most of a strong market opportunity.

According to government statistics, small businesses account for 34% of industry value added (IVA) in Australia. This huge contribution to Australia's GDP makes them a potentially lucrative market for Xero to continue to capture.

The ASX tech share reported some strong numbers in its 14 May full-year result. Xero's subscriber numbers surged 467,000 during the year to 2.285 million while the company posted a net profit after tax of $3.3 million. Free cash flow jumped $20.7 million to $27.1 million for the year.

Those are some strong financials, despite flagging slowing subscriber additions due to COVID-19.

Finally, if you want to diversify across ASX tech shares, I'd consider an exchange-traded fund (ETF). An ASX-listed ETF can be an easy way to gain exposure to multiple tech companies.

The ETFS Morningstar Global Technology ETF (ASX: TECH) has caught my eye recently. The ASX tech ETF has a management fee of 0.45%, is not currency-hedged and has assets under management of $144.3 million as of 3 July 2020.

With top holdings like BroadCom Inc. (4.2%) and Microsoft Corp (4.0%), this ETF is an easy way to get exposure to other quality tech shares outside of the ASX.

The post Where to invest $1,000 in ASX tech shares today appeared first on The Motley Fool Australia.

But these days (much like the app store), if there's a trend, asset class or industry to track, chances are there's an ETF for that.

But with a plethora of choice out there, which ETFs should we choose for our portfolios? Well, if you're looking to add some international exposure to your portfolio, I've found 2 exotic ETFs I think merit consideration.

iShares MSCI EAFE ETF (ASX: IVE)

Don't let this acronym-replete name dissuade you. IVE tracks a basket of shares from Europe, Australia and the Far East (EAFE). Most of the international investing that Aussies tend to participate in revolves around the United States. While this is not necessarily a bad thing, I do think that America has its own set of unique challenges right now. Considering this, a bit of international diversification might not go astray in our portfolios.

IVE has its largest exposure (26% of the portfolio) to Japan with shares like Toyota. But the United Kingdom (at 14%), France (at 10.5%), Switzerland (10.2%) and Germany (9%) also feature heavily. Our own ASX shares make up around 6.4% of this ETF. Apart from Toyota, other companies that feature in IVE's top 10 list include Nestle, Roche, Novartis, SAP and LVMH.

IVE has a management fee of 0.31% per annum, which I think is reasonable considering the geographical diversification it brings to the table.

ETFS Morningstar Global Technology ETF (ASX: TECH)

This tech-focused ETF (hence the ticker symbol) is one of my favourite exotic ETFs on the ASX. It aims to track a basket of tech-related companies that are selected by the reputable Morningstar group. It's dominated by US companies (with 85.5% of the portfolio), but also features Japan, Germany and France in its exposures. TECH's holdings are made up of both large and small tech companies. Microsoft is in the top 10, as is Fortinet, Splunk, ServiceNow and Intel.

Morningstar regularly updates and rebalances this index. Thus, you can have reasonable confidence that any company that stumbles or goes off the rails will be replaced with another up-and-comer. If you feel your portfolio doesn't have sufficient exposure to the global technology sector, then TECH is a great way to easily remedy this situation. This ETF has a management fee of 0.45% per annum, which isn't on the cheap side. However, since TECH has returned an average of 25.15% per annum over the past 3 years, personally I would consider this fee 'worth it'.

The post 2 exotic ETFs for your ASX portfolio appeared first on The Motley Fool Australia.

Tech shares of all stripes have done remarkably well since the S&P/ASX 200 Index (ASX: XJO) market bottom – but it's easy to forget just how well.

Since 23 March, the ASX 200 has risen approximately 28% (even after today's falls). But since the same date, the S&P/ASX All Technology Index (ASX: XTX) is up nearly 70%.

Just look at shares like Afterpay Ltd (ASX: APT). Its shares have been truly phenomenal to watch over the past 2 months. After bottoming out at $8.90 on 23 March, Afterpay shares were at an all-time high this week, hitting $54.85 at one point. That's a return of more than 500% – sensational stuff!

It's a similar story over in the United States for tech shares. Since 23 March (also the US market bottom), the Dow Jones Industrial Average has risen roughly 35%. But if you look at US tech shares like Apple (up nearly 50% since 23 March), Mastercard (up 43%), and Facebook (up nearly 52%), we can see a similar story playing out.

So should we just give up on the blue chips of the world in favour of ASX tech shares? By blue chips, I'm referring to the likes of Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS). 

A bull case for ASX tech shares

Well, I think to ignore tech shares is to do so at our own peril. These are the companies that are shaping the future of business in my view. Thus, I think it's imperative to at least consider some tech shares like Afterpay, or maybe Altium Limited (ASX: ALU) or NextDC Ltd (ASX: NXT) for one's portfolio. If you're aiming to build your wealth through ASX shares, you'll want to find at least some companies that are growing quickly – and there's nowhere better to find such companies than in the tech space, in my view.

If you're not confident investing in individual ASX tech shares, you can always look at exchange-traded funds (ETFs) instead. The Betashares Nasdaq 100 ETF (ASX: NDQ) is a great place to start. You can also have a look at the aptly tickered ETFS Morningstar Global Technology ETF (ASX: TECH).

In saying this, I also think it's a mistake to tar all ASX tech shares with the same brush. Like any other sector, there will be winners and losers. For every Afterpay, there's another tech company with a 'brilliant idea' that won't make it off the starter's block.

Furthermore, investors shouldn't forget that having a diversified portfolio is always important. And only investing in tech isn't diversified at all. The tech sector isn't immune from the vicissitudes of life and faces some unique risks that merit the same level of balanced diversification as any other sector in your portfolio.

The post Tech shares! Should we even invest in anything else? appeared first on The Motley Fool Australia.

ETFs essentially allow you to buy units in a fund that invests in a diversified portfolio of shares. These funds come in many forms and can be specific to a particular country, like Vanguard Australian Shares Index ETF (ASX: VAS), or a sector like the ETFS Morningstar Global Technology ETF (ASX: TECH).

So, before you commit your hard-earned cash to the share market, let's check out some of the best ASX ETFs to buy today.

Why should I buy ETFs in the first place?

ETFs are a great way to achieve instant diversification. Portfolio construction is critical but it takes time and money. If you're just looking to invest $1,000 today, this may only buy you a few shares in the S&P/ASX 200 Index (ASX: XJO).

For instance, the CSL Limited (ASX: CSL) shares are currently trading at nearly $300 each which will eat up the majority of your investment for a grand total of only 3 shares in one company. 

However, an ETF like the Vanguard Australian Shares Index ETF gives you broad exposure to the S&P/ASX 300. This ETF essentially tracks the market and means you're a passive investor.

Investing in ASX ETFs isn't for everyone and many investors prefer to select individual shares to buy. If you're a relatively new investor, however, or you like the diversification offered by ETFs, here are a couple of top funds to consider today.

Where to invest $1,000 in ASX ETFs today

I think ETFs have a place in almost any portfolio. Buying ETFs is an easy way to diversify or even target a specific sector or geography.

For instance, If you're bullish about tech, the ETFS Morningstar Global Technology ETF can top up your exposure without buying shares in each individual tech company.

VAS and TECH aside, iShares S&P 500 ETF (ASX: IVV) could be a strong buy if you're bullish about the United States. Federal Reserve Chair Jerome Powell is doing everything he can to keep the economy ticking along right now and we could see some strong gains in US markets as a result.

If you're after an all-in-one solution, the Vanguard Diversified High Growth Index ETF (ASX: VDHG) could be for you. This fund is a diversified global portfolio with a heavier weighting towards the ASX.

Either of these could be great options if you're just looking to invest $1,000 in a diversified portfolio but don't know where to start.

The post Where to invest $1,000 in ASX ETFs today appeared first on The Motley Fool Australia.