Changes are happening - please bear with us while we update our site.

Join Free
Log in

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Join Free
Log in

Down 10%, is BetaShares S&P/ASX Australian Technology ETF (ASX:ATEC) a buy?

Could BetaShares S&P/ASX Australian Technology ETF (ASX:ATEC) be a good buy after dropping 10% sine the middle of April 2021.
Picture of Jaz Harrison

Jaz Harrison

Jaz is a Staff Writer for Rask. She is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.
More analysis

Could BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) be a good buy after dropping 10% since the middle of April 2021?

What’s happening to the ATEC ETF?

An exchange-traded fund (ETF) is going to perform in line with its underlying holdings. Plenty of the ASX’s largest tech shares have been dropping in recent weeks as worries about growth, inflation and interest rates.

The biggest influence on the portfolio is the largest holdings. Afterpay Ltd (ASX: APT) is 17.9% of the portfolio, Xero Limited (ASX: XRO) is 12.7% of the ETF.

Other businesses that make up more than 1% of the portfolio includes: SEEK Limited (ASX: SEK), Computershare Ltd (ASX: CPU), REA Group Limited (ASX: REA), Carsales.com Ltd (ASX: CAR), Nextdc Ltd (ASX: NXT), WiseTech Global Ltd (ASX: WTC), Altium Limited (ASX: ALU), Link Administration Holdings Ltd (ASX: LNK), TechnologyOne Ltd (ASX: TNE), Codan Limited (ASX: CDA), Megaport Ltd (ASX: MP1), Iress Ltd (ASX: IRE), Appen Ltd (ASX: APX) and Tyro Payments Ltd (ASX: TYR).

There has been an uptick in volatility in recent times.

Is BetaShares S&P/ASX Australian Technology ETF worth buying?

I think that technology is one of the best sectors to own on the ASX. Most tech businesses have plenty of growth potential with good margins.

But, with Afterpay making up almost a fifth of the portfolio, you need to have an opinion about the buy now, pay later business valuation. I’m not convinced that the current Afterpay share price is good value because of how much competition there is.

Compared to most active fund managers, the annual fee is a reasonable at 0.48%.

BetaShares S&P/ASX Australian Technology ETF could be a good buy after dropping 10% since the middle of April 2021. hasn’t been around for very long, but it has done well with a net return of 33.2% over the last year.

Most of the ASX tech shares in the portfolio are interesting businesses with good growth potential. But the valuation of plenty of those ASX shares aren’t very attractive to me. So there are other ETFs and ASX growth shares that I’d rather buy.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Access all reports now

Unsubscribe anytime. Read our Terms, Financial Services Guide, Privacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Altium.

Latest stories

Free passive income report
Skip to content