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
The realm of internet-enabled devices continues to expand to new categories, allowing manufacturers to monitor and service products via software upgrades.
Technology spans multiple segments, and the most innovative companies include both household names and newcomers from around the world.
1 Forbes, May 2018
Product Information As of 1 Dec 2023
7 Apr 2017
Management Costs (% p.a.)
Managed Investment Scheme
NAV Information As of 1 Dec 2023
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.
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.
TECH AU Equity
10:00AM – 4:00PM
Management & Administration
Global X Management (AUS) Limited
The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Computershare Investor Services Pty Limited
Morningstar Developed Markets Technology Moat Focus Index
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.
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