Betashares S&P/ASX Australian Technology ETF Guide (ATEC): What Is It All About?

Overview

The Betashares S&P/ASX Australian Technology ETF gives investors a concentrated way to access listed Australian technology-oriented companies, with a portfolio that also reaches into communication services, financial services and healthcare. It is built around a relatively small group of domestic growth businesses, so its performance can move sharply when sentiment toward technology shares changes.

Category

ATEC is a thematic equity ETF centred on Australian technology and technology-adjacent companies. That means the fund is not just a pure software play: its holdings also include firms tied to digital platforms, data infrastructure, online marketplaces and technology-enabled services. The result is a portfolio that reflects the local innovation ecosystem more broadly than a narrow sector label might suggest.

The fund’s recent numbers point to a difficult period for Australian growth stocks. The ETF is down 13.13% year to date and 30.99% over 1 year, although its 3-year return of 5.05% and 5-year return of 1.41% show that longer-run outcomes have been more mixed than the latest drawdown suggests. With a 72.038% top-10 concentration, the fund’s path is likely to remain closely tied to a handful of large holdings rather than the wider Australian share market.

Key facts

Costs

The fund’s TER and net expense ratio are both listed as 0%, which indicates no ongoing management cost is shown in the supplied data.

Performance

Holdings

The portfolio is led by Computershare Ltd at 10.336%, Xero Ltd at 9.197%, Pro Medicus Ltd at 9.052%, NEXTDC Ltd at 8.911% and CAR Group Ltd at 7.843%. The remaining top holdings are Technology One Ltd at 7.21%, Wisetech Global Ltd at 5.615%, REA Group Ltd at 5.595%, Codan Ltd at 4.193% and Megaport Ltd at 4.086%. Taken together, these holdings show a strong tilt toward software, data, digital infrastructure and online platforms.

Regions

Sectors

Related ETFs

Compared with broad Australian equity funds, ATEC is far more concentrated and sector-specific. Its 58.702% allocation to Technology is the defining feature, but meaningful weights in Communication Services at 17.52%, Financial Services at 10.84% and Healthcare at 12.85% make it a broader digital-growth basket than a simple tech index proxy. That makes it more of a thematic satellite exposure than a core-market substitute.

Risks

Who it may suit

This ETF may suit investors who want targeted exposure to Australian listed technology and digital businesses and are comfortable with higher concentration risk. It may also appeal to those seeking domestic growth exposure without adding overseas currency risk through an international tech ETF. It is less likely to suit investors looking for diversified, lower-volatility core equity exposure.

Key risks

The main risk is concentration: the top 10 holdings account for 72.038% of the fund, and the largest position, Computershare Ltd, represents 10.336%. Sector concentration is also pronounced, with Technology dominating the portfolio. That can amplify both upside and downside when growth stocks re-rate. The recent -30.99% 1-year return shows how quickly a thematic portfolio can fall out of favour. As with any narrower ETF, liquidity, valuation sensitivity and earnings disappointment at a few major names can have an outsized impact.

FAQ