Morningstar Global Technology ETF (TECH) – Global X ETFs Australia

TECH


Morningstar Global Technology ETF

Reasons to Consider TECH

High Growth Potential

Every day, 2.5 quintillion bytes of data & 2.5 billion strands of information are created by our online activities, from cloud-based gaming to e-commerce and beyond.1

Structural Tailwinds

The realm of internet-enabled devices continues to expand to new categories, allowing manufacturers to monitor and service products via software upgrades.

Unconstrained Approach

Technology spans multiple segments, and the most innovative companies include both household names and newcomers from around the world.

1 (Exploding Topics, 2023) https://explodingtopics.com/blog/big-data-stats

Product Information As of 20 Jun 2024

Inception Date 7 Apr 2017
Management Costs (% p.a.) 0.45
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 20 Jun 2024

NAV/Unit (A$) 100.62660000
Currency (NAV) AUD
Shares Outstanding 3,299,730
AUM (A$) 332,040,741.00
NAV History File View

Product Summary

The Global X Morningstar Global Technology ETF (TECH) seeks to invest in 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.

Product Objective

The Global X Morningstar Global Technology ETF (TECH) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Developed Markets Technology Moat Focus Index.

Trading Details

Ticker TECH
Bloomberg Code TECH AU Equity
ISIN AU00000TECH1
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited

Benchmark Information

Benchmark Morningstar Developed Markets Technology Moat Focus Index
Provider Morningstar Australasia Pty Ltd
Ticker MSDITMNU

Distributions As of 31 May 2024

12-Month Yield 0.49%
12-Month Franking Level 3.62%
Distribution Frequency Semi-Annually
Distribution History View

Performance Table As of 20 Jun 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -3.53% -3.50% -0.03% 0.66%
3 Months -7.69% -7.61% -0.09% 0.66%
1 Year 10.98% 11.48% -0.49% 0.67%
3 Year p.a. 4.68% 5.24% -0.56% 0.43%
5 Year p.a. 13.27% 13.73% -0.46% 0.45%
10 Year p.a. -- -- -- --
Since Inception p.a. 17.05% 17.48% -0.43% 0.39%

Top Holdings As of 21 Jun 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
5.89 TERADYNE INC 2884183 147.95 88,114 19,558,122
4.72 WISETECH GLOBAL BZ8GX83 91.93 170,656 15,688,406
4.64 TYLER TECHNOLOG 2909644 479.04 21,436 15,405,748
4.30 MURATA MFG CO 6610403 3,358.00 451,000 14,313,697
4.15 SS&C TECHNOLOGIE B58YSC6 62.15 147,670 13,768,945
4.12 UBER TECHNOLOGIE BK6N347 70.30 129,663 13,675,357
3.90 INFINEON TECH 5889505 34.99 230,090 12,948,596
3.82 FORTIVE CORP BYT3MK1 72.97 115,856 12,683,238
3.76 FORTINET INC B5B2106 57.94 143,451 12,469,509
3.75 F5 INC 2427599 169.74 48,931 12,460,503
3.74 COGNIZANT TECH-A 2257019 68.14 121,490 12,419,666
3.55 ON SEMICONDUCTOR 2583576 67.63 116,215 11,791,494
3.54 LYFT INC-A BJT1RW7 13.75 570,002 11,758,349
3.48 SALESFORCE INC 2310525 241.80 31,886 11,567,076
3.26 NICE LTD 6647133 599.90 44,803 10,827,883
2.58 MARVELL TECHNOLO BNKJSM5 73.24 78,096 8,581,128
2.39 MICROSOFT CORP 2588173 445.70 11,856 7,927,716
2.36 FIDELITY NATIONA 2769796 76.48 68,302 7,836,977
2.34 NXP SEMICONDUCTO B505PN7 264.68 19,527 7,753,966
2.32 ASMPT LTD 6002453 99.70 412,400 7,904,105
2.24 BLACKBAUD INC 2458878 75.72 65,452 7,435,339
2.18 VONTIER CORP BH4GV32 39.19 122,862 7,223,707
2.14 SERVICENOW INC B80NXX8 734.31 6,436 7,090,270
2.09 AUTODESK INC 2065159 243.51 18,995 6,939,423
2.08 ADOBE INC 2008154 522.95 8,783 6,890,811
2.00 LITTELFUSE INC 2531832 262.40 16,867 6,640,013
1.85 SKYWORKS SOLUTIO 2961053 105.80 38,780 6,155,463
1.79 BLOCK INC BYNZGK1 62.74 63,147 5,943,804
1.73 WORKDAY INC-A B8K6ZD1 214.59 17,868 5,752,448
1.71 ATLASSIAN CORP-A BQ1PC76 157.52 24,072 5,688,728
1.68 SMARTSHEET INC-A BFZND98 41.24 90,376 5,591,638
1.68 ADYEN NV BZ1HM42 1,159.00 2,995 5,583,716
1.57 STMICROELECTRONI 5962332 38.43 84,096 5,197,952
1.37 DAYFORCE INC BFX1V56 49.86 61,010 4,563,737
1.19 SOITEC BZ6T5C2 106.20 23,130 3,951,329
0.00 SKYWORKS SOLUTIO 2961053 105.80 0 0
0.00 ASMPT LTD 6002453 99.70 0 0
0.00 SOITEC BZ6T5C2 106.20 0 0
0.00 DAYFORCE INC BFX1V56 49.86 0 0
0.00 SMARTSHEET INC-A BFZND98 41.24 0 0
Holdings are subject to change.

Sector Breakdown As of 21 Jun 2024

Sector Weight (%)
Information Technology 77.1
Industrials 17.0
Financials 5.8
Other/Cash 0.1

Country Breakdown As of 21 Jun 2024

Country Weight (%)
United States 72.9
Australia 6.4
Japan 4.3
Netherlands 4.0
Germany 3.9
Israel 3.3
Hong Kong 2.3
Switzerland 1.6
France 1.2
Other/Cash 0.1

Research

FAQs

  • What is a technology company?

    TECH invests in the technology sector as defined by the Morningstar Global Category Classification, which includes companies that generate their revenue from hardware, software and IT services.

    Investors should note that some high profile companies, like Amazon and Facebook, that have a heavy technology association to their products or services belong to other sectors because their revenue does not come directly from the sale or licensing of their technology. They are therefore not included in TECH.
  • How are companies in TECH weighted?

    The index is comprised of two sub-portfolios, each consisting of 25 stocks. One of the sub-portfolios is alternately rebalanced each quarter and the stocks are equally weighted. The total number of stocks in the index depends on the degree of similarity between the two portfolios; a minimum of 25 stocks if the portfolios are identical and a maximum of 50 stocks if no companies are in both portfolios. This approach is taken to reduce company-specific risk and at the same time avoid excessive portfolio turnover.

    The choice of an equal weighting scheme seeks to provide investors exposure to the overall sector and allow all stocks to contribute equally to returns. Large-cap stocks do not dominate as they do where holdings are weighted by market capitalisation.
  • Does TECH have country exposure limits?

    The maximum weight of an individual country in the index is capped at 10% plus its corresponding weight in the benchmark, or 40%, whichever is higher. Maximum Country Weight = Max (40%, benchmark weight + 10%).
  • What is Morningstar’s Economic Moat Rating?

    An economic moat, like a physical moat, represents the degree to which a company has built a competitive advantage around its business. This can be in terms of intangible assets, costs of switching to alternative providers, network effects, input cost advantages or efficiencies of scale. The extent to which a company holds some, or all of these, helps define how robust that company is viewed to be relative to its competitors and whether it is assigned a wide, narrow or no Morningstar Economic Moat Rating. The index is comprised exclusively of companies identified as having wide or narrow moats.
  • How can I use TECH in a portfolio?

    TECH can be used as a core exposure to the global technology sector and can aid portfolio sector diversification via investment in a sector that is underrepresented in the Australian market.

    TECH may also be used as a tool for expressing long-term strategic or short-term tactical views on the technology sector.

    For those using a core-satellite investment approach, TECH can be used in either core or satellite. It is differentiated from market capitalisation weighted strategies by its research-focused, value-oriented approach to stock selection.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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