Technology remains one of the most influential parts of global share markets, with artificial intelligence (AI), cloud computing, semiconductors and cybersecurity continuing to attract significant investment. For Australian investors, technology ETFs offer a way to access these global growth trends through a single ASX-listed investment.
The AI investment cycle remained a major driver of technology earnings through the first half of 2026. Microsoft reported that Azure and other cloud services revenue grew 43% year-on-year in the quarter ended 30 June 2026, while Alphabet reported 82% growth in Google Cloud revenue and lifted its 2026 capital expenditure guidance to US$195–205 billion as it builds additional AI infrastructure.
Tech stocks can be volatile, and for every skyrocketing Nvidia stock, there is another that brings warnings of a bubble burst similar to that seen in the early 2000s, when tech first took hold of the market. High valuations, changing earnings expectations and concentration in a relatively small number of mega-cap companies can amplify both gains and losses. This means strong long-term growth in technology does not remove the importance of diversification.
The rapid repricing of AI-related companies over the past few years has highlighted how quickly sentiment can change. As recently as early January 2025, Nvidia recorded record one-day losses in value (with share prices dropping approximately 17%), following the success of Chinese tech AI chatbot DeepSeek and their claims of utilising cheaper versions of Nvidia chips. This threw investors into turmoil, questioning if Nvidia would continue to experience longstanding success given the tech giants spending, only for the market to rebound shortly after. At the same time, Nvidia reported fiscal-year 2026 revenue of US$215.9 billion, up 65% year-on-year.
Interest rates remain another important consideration for technology investors. Higher interest rates can make the valuations of fast-growing companies more sensitive to changes in expected future earnings, even when underlying business growth remains strong.
The Australian share market remains relatively light on technology exposure, representing roughly 3% allocation to technology companies compared to nearly 27% in the U.S.
Exchange traded funds (ETFs), can provide access to the best performing tech companies around the world while also limiting volatility by providing diversified exposure. Investing in technology ETFs can offer investors broad-based technology exposure.
Stockspot investors with balances over $20,000 can access tech themes to increase the overall allocation to tech companies as a satellite investment complimenting a diversified portfolio.
The following ETFs are listed on ASX that track the broad technology sector:
- Betashares NASDAQ 100 ETF (NDQ)
- Betashares Asia Technology Tigers ETF (ASIA)
- Betashares S&P/ASX Australian Technology ETF (ATEC)
- The Global X Morningstar Global Technology ETF (TECH)
- Global X FANG+ ETF (FANG)
- Global X China Tech ETF (DRGN)
Note: NDQ also has a hedged version called the Betashares NASDAQ 100 ETF – Currency Hedged (HNDQ), which seeks to reduce the impact of movements between the Australian and U.S. dollars on investment returns.
Stockspot reviews and compares more than 250 ETFs in our annual Stockspot ETF Report.
Following the success of our annual Stockspot ETF Report, in this article, we road test the best technology ETFs in Australia. We will compare technology ETFs across a range of different metrics, to provide our analysis on the most suitable choice for Australian investors.
- Size
- Costs and slippage
- Liquidity
- Returns and track record
- Exposure and holdings
- Verdict and conclusion
2026 Tech ETF market summary
Technology ETF assets grew strongly during the second quarter of 2026. Across the seven ETFs reviewed, combined funds under management (FUM) increased from approximately $11.0 billion at 31 March 2026 to $15.4 billion at 30 June 2026, an increase of around 40%. Importantly, an increase in FUM does not necessarily represent investor inflows because rising underlying asset values can also increase the size of a fund.
NDQ remained by far the largest technology ETF in the comparison, growing from $6.9 billion to $9.4 billion in FUM over the quarter. ASIA recorded the fastest percentage growth, with FUM increasing almost 70% from $938 million to $1.6 billion.
Performance also shifted materially during the quarter. ASIA’s trailing one-year return increased from 32.9% at the end of March to 95.6% at the end of June. TECH’s one-year return moved from -11.2% to 14.4%, while HACK moved from -10.6% to 11.7%. By contrast, ATEC’s one-year return remained negative at -24.7% even as its FUM increased 46% to $675 million, demonstrating why fund size, recent performance and investor demand need to be assessed separately.
Size
NDQ is the largest technology-related ETF of those compared with $9.4 billion in funds under management (as at 30 June 2026), up from $6.9 billion at the end of March 2026. Launched in 2015, NDQ has largely benefitted from its first-mover advantage, historic strong returns, and because it tracks a well-known index, the NASDAQ.
The newest of the funds, FANG, remains the second-largest ETF in the comparison, with FUM increasing from $1.2 billion to $1.7 billion during the second quarter of 2026, growth of around 40%.
ASIA moved into third place by FUM during the quarter after growing from $938 million to $1.59 billion. This represented an increase of almost 70%, the fastest percentage FUM growth among the ETFs in our comparison.
HACK, was close behind with $1.58 billion in FUM at 30 June 2026, up from $1.1 billion at the end of March, an increase of approximately 41%.
ATEC, which launched in March 2020, had $675 million in FUM at the end of June, compared with $462 million three months earlier. That represents an increase of approximately 46%, despite ATEC recording the weakest one-year performance among the ETFs compared.
TECH and DRGN are lagging behind their peers with funds under management of $358 million and $98 million respectively. DRGN was launched in May 2025, and is therefore in relative infancy.
Tech ETF cost and slippage
When it comes to cost, there are two components for ETF investors to consider – the management fee of the ETF and the costs of trading (i.e. slippage).
Slippage refers to how much you lose by crossing the spread when buying or selling an ETF. It’s calculated by the average percentage difference between the best buyer and seller during market hours.
FANG has the lowest management fee of the technology ETFs compared at 0.35% per year. NDQ is the ETF with the lowest slippage, at 0.03%, followed by FANG at 0.07% and ATEC at 0.09%.
ASIA and HACK have the highest management fees in the comparison at 0.67% per year. ASIA’s average spread was 0.11%, while HACK’s was slightly wider at 0.14%. Investors should consider both the ongoing management fee and trading spread rather than looking at either cost in isolation.
DRGN has the widest average buy-sell spread of the ETFs compared at 0.67%, considerably higher than the larger funds. Its smaller FUM and lower daily traded value, are consistent with a less liquid ETF, which can contribute to wider spreads. TECH also has a relatively wide spread of 0.36%.
For investors who trade regularly or invest larger amounts, liquidity and spreads can therefore be just as important as the headline management fee when comparing technology ETFs.
| TICKER CODE | MANAGEMENT FEE | BUY/SELL SPREADS (SLIPPAGE) |
| NDQ | 0.48% | 0.03% |
| ASIA | 0.67% | 0.11% |
| TECH | 0.45% | 0.36% |
| FANG | 0.35% | 0.07% |
| HACK | 0.67% | 0.14% |
| ATEC | 0.48% | 0.09% |
| DRGN | 0.45% | 0.67% |
Liquidity
NDQ is the most liquid technology ETF compared, trading approximately $34 million in average daily volume. This is more than three times the daily traded volume of the next most liquid ETF FANG.
FANG is the second most traded tech ETFs with approximately $10.3 million traded daily, followed by ATEC with $9.4 million traded daily. ASIA is relatively liquid with $7.8 million traded daily, while HACK and TECH are significantly less liquid. HACK trades smaller volumes than the larger funds, with approximately $3.3 million traded daily, while TECH averages around $1.2 million.
DRGN remains the least liquid ETF of those compared with daily traded values of approximately $772,000.
Liquidity is particularly important for ETF investors because more actively traded funds will generally have tighter bid-ask spreads, reducing the potential cost of buying and selling. NDQ stands out on both measures, combining the highest average daily traded value with the narrowest spread of 0.03%. By contrast, DRGN combines the lowest daily traded value with the widest spread at 0.67%.
Returns and track record
Most technology ETFs listed on the ASX are relatively new and were launched to capitalise on strong investor demand for the sector, meaning long-term track records remain somewhat limited.
Over five years, Global X FANG+ ETF (FANG) continues to lead the group, delivering 19.9% p.a. to 30 June 2026. Betashares NASDAQ 100 ETF (NDQ) has generated 17.7% p.a., while BetaShares Asia Technology Tigers ETF (ASIA) and Global X Cybersecurity ETF (HACK) generated returns of 15.5% p.a. and 15.4% p.a. respectively.
TECH has returned 9.7% p.a., while ATEC continues to lag its peers with a five-year annualised return of 1.4%. DRGN does not yet have a five-year track record given its more recent launch.
Shorter-term performance, however, tells a very different story. ASIA was the standout performer over the 12 months to 30 June 2026, returning 95.6%. DRGN, despite its shorter history, returned 44.0%, while NDQ delivered 25.7%. TECH and HACK also experienced significant improvements in their trailing one-year performance, returning 14.4% and 11.7% respectively, compared with negative one-year returns at the end of March.
FANG delivered a more modest 6.8% over the year, despite retaining the strongest five-year annualised return of the group. ATEC was the clear laggard over the shorter term, returning -24.7% over the 12 months to June 2026. This contrasts sharply with the strong performance of many global and Asian technology exposures.
The three-year figures also demonstrate the divergence between technology markets. ASIA leads with an annualised return of 48.1%, followed by FANG at 28.5%, NDQ at 24.5% and HACK at 23.6%.
This wide range of returns highlights why technology ETFs should not be treated as a single, uniform investment category. Performance can vary significantly depending on geography, portfolio concentration, sub-sector exposure, currency movements and the economic and interest-rate environment. Recent performance can also change rapidly, reinforcing the importance of considering longer-term returns, diversification and the underlying holdings rather than choosing an ETF based on its latest one-year result alone.
| TICKER CODE | 1 Year Return | 3 Year Return | 5 Year Return |
| NDQ | 25.7% | 24.5% | 17.7% |
| ASIA | 95.6% | 48.1% | 15.5% |
| TECH | 14.4% | 15.8% | 9.7% |
| FANG | 6.8% | 28.5% | 19.9% |
| HACK | 11.7% | 23.6% | 15.4% |
| ATEC | -24.7% | 8.7% | 1.4% |
| DRGN | 44.0% | N/A | N/A |
Exposure and holdings
While technology ETFs track a basket of tech stocks, they can have different underlying holdings and subsequent weights based on the indexes they track.
NDQ tracks the NASDAQ 100 Index which looks at the top 100 non-financial companies listed on the NASDAQ exchange.
ASIA tracks the Solactive Asia Ex-Japan Technology & Internet Tigers Index and has a focus on technology companies in China, Taiwan, South Korea, India and Singapore.
TECH tracks the Morningstar Developed Markets Technology Moat Focus Index which comprises up to 50 technology companies with a strong competitive advantage and attractive valuations.
FANG tracks the NYSE FANG+ index which equally weights high growth technology companies.
Here are the top 10 holdings in NDQ, ASIA, TECH and FANG:
| NDQ | ASIA | TECH | FANG | |
| 1 | NVIDIA Corp | SK Hynix Inc | Taiyo Yuden Co Ltd | Micron Technology Inc |
| 2 | Apple Inc | Samsung Electronics Co | Entegris Inc | Amazon.com |
| 3 | Micron Technology Inc | Taiwan Semiconductors | Amphenol Corp | Meta Platforms Inc |
| 4 | Microsoft Corp | MediaTek Inc | Marvell Technology Inc | Microsoft Corp |
| 5 | Advanced Micro Devices Inc | Tencent Holdings | Advanced Micro Devices Inc | Alphabet Inc |
| 6 | Amazon.com | Alibaba Group | Arista Networks Inc | Apple Inc |
| 7 | Tesla Inc | Delta Electronics | NVIDIA Corp | NVIDIA Corp |
| 8 | Alphabet Inc (Class A) | ASE Technology Holding Co | Broadcom Inc | Broadcom Inc |
| 9 | Intel Corp | Hon Hai Precision Industry | Sony Group Corporation | Netflix inc |
| 10 | Alphabet Inc (Class C) | Samsung Electro-Mechanics Co | CGI Inc | Palantir Technologies Inc. |
| Top 10 Holdings | 44.9% | 71.0% | 40.8% | 100% |
What about other thematic tech ETFs?
While broader technology ETFs are diversified across the whole technology sector, there has been a rise of newer thematic ETFs that track very specific types of technology sectors.
| ASX Code | Issuer Name | Size ($M) | Cost | 1 Year Return | 5 Year Total Return p.a. |
| SEMI | Global X | $1,291 | 0.45% | 160.8% | N/A |
| ROBO | Global X | $344 | 0.69% | 34.3% | 7.3% |
| RBTZ | Betashares | $323 | 0.57% | 10.2% | 3.4% |
| ITEK | iShares | $10 | 0.30% | 28.1% | N/A |
While these niche thematic ETFs offer exposure to new and interesting industries, investors need to be cautious as these ETFs are also susceptible to greater volatility, which is why we avoid niche thematic ETFs for our clients at Stockspot.
Verdict and conclusion
For investors seeking additional technology exposure, we prefer NDQ and ASIA over more concentrated or narrowly focused technology ETFs. They provide exposure to two different parts of the global technology market: NDQ tracks the Nasdaq-100, while ASIA focuses on leading Asian technology and internet companies.
We offer NDQ and ASIA as part of our Stockspot Themes and help to blend them into a broadly diversified portfolio for clients.
We like that they are large in size, have deep liquidity and track broad market indexes that are not too niche.
Click here to learn more about our Stockspot Themes Tech ETF bundles
Technology ETFs do come with their own set of risks, and in order to avoid your portfolio being overly exposed to a tech crash like 2000, we recommend clients only invest a small portion of their overall portfolio in these sector ETFs.
The core part of our client’s portfolios are invested in a diversified mix of ETFs across different assets including shares, bonds and gold.
So, what is the best technology ETF in Australia? Our comparison shows there is no single winner across every measure. FANG has the strongest five-year return, ASIA leads recent one- and three-year performance, while NDQ stands out for its size, liquidity and relatively tight trading spread. The right technology ETF therefore depends on the exposure an investor wants, the costs they are prepared to pay and how the investment fits within their broader diversified portfolio.
