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 3 Oct 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 3 Oct 2024

NAV/Unit (A$) 96.48060000
Currency (NAV) AUD
Shares Outstanding 3,330,957
AUM (A$) 321,372,873.40
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 30 Sep 2024

12-Month Yield 7.25%
12-Month Franking Level 0.01%
Distribution Frequency Semi-Annually
Distribution History View

Performance Table As of 3 Oct 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -1.26% -1.22% -0.04% 0.01%
3 Months 0.71% 0.83% -0.12% 0.03%
1 Year 12.80% 13.31% -0.51% 0.05%
3 Year p.a. 3.18% 3.74% -0.57% 0.19%
5 Year p.a. 12.99% 13.50% -0.51% 0.33%
10 Year p.a. -- -- -- --
Since Inception p.a. 16.79% 17.23% -0.44% 0.30%

Top Holdings As of 4 Oct 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
4.52 SALESFORCE INC 2310525 280.91 35,334 14,510,159
4.39 SHOPIFY INC - A BX865C7 105.98 123,338 14,112,315
4.38 AUTODESK INC 2065159 268.59 35,857 14,079,134
4.34 SS&C TECHNOLOGIE B58YSC6 73.61 129,729 13,960,020
4.24 COGNIZANT TECH-A 2257019 76.53 121,679 13,613,177
4.08 WORKDAY INC-A B8K6ZD1 240.94 37,260 13,123,930
3.97 UBER TECHNOLOGIE BK6N347 72.94 119,730 12,766,766
3.97 BLOCK INC BYNZGK1 65.64 132,870 12,749,926
3.93 LITTELFUSE INC 2531832 254.34 33,985 12,636,130
3.90 MURATA MFG CO 6610403 2,825.50 449,300 12,645,074
3.82 ADOBE INC 2008154 503.80 16,683 12,286,961
3.77 ZSCALER INC BZ00V34 169.63 48,851 12,114,020
3.72 VONTIER CORP BH4GV32 33.03 247,796 11,965,064
3.66 SENSATA TECHNOLO BFMBMT8 34.38 233,853 11,753,331
3.57 NXP SEMICONDUCTO B505PN7 233.24 33,673 11,481,457
3.56 INFINEON TECH 5889505 29.76 238,732 11,443,490
3.52 LYFT INC-A BJT1RW7 12.36 625,716 11,305,971
2.46 F5 INC 2427599 218.08 24,839 7,918,850
2.36 TYLER TECHNOLOG 2909644 581.55 8,928 7,590,203
2.25 CROWDSTRIKE HO-A BJJP138 283.75 17,456 7,240,903
2.19 SMARTSHEET INC-A BFZND98 55.49 86,708 7,033,736
2.18 ASML HOLDING NV B929F46 755.10 5,758 7,003,112
2.10 ADYEN NV BZ1HM42 1,353.00 3,095 6,744,867
2.06 ELASTIC NV BFXCLC6 76.20 59,436 6,620,895
2.04 SONY GROUP CORP 6821506 2,780.00 238,000 6,590,394
2.04 PALO ALTO NETWOR B87ZMX0 335.94 13,382 6,571,960
1.98 MICROSOFT CORP 2588173 416.54 10,461 6,370,039
1.98 FORTIVE CORP BYT3MK1 76.74 56,666 6,357,063
1.97 TERADYNE INC 2884183 129.01 33,652 6,346,677
1.97 CLOUDFLARE INC-A BJXC5M2 79.43 54,551 6,334,312
1.80 MARVELL TECHNOLO BNKJSM5 72.24 54,841 5,791,556
1.77 NICE LTD 6647133 632.00 23,446 5,693,253
1.20 STMICROELECTRONI 5962332 25.71 93,179 3,858,647
Holdings are subject to change.

Sector Breakdown As of 4 Oct 2024

Sector Weight (%)
Information Technology 74.1
Industrials 17.5
Financials 6.1
Consumer Discretionary 2.0
Other/Cash 0.3

Country Breakdown As of 4 Oct 2024

Country Weight (%)
United States 75.0
Netherlands 7.9
Japan 5.9
Canada 4.4
Germany 3.6
Israel 1.8
Switzerland 1.2
Other/Cash 0.2

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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