Thursday, September 19, 2024

Could these be the best ASX tech ETFs to buy for FY25?

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The tech sector has been flying over the last 12 months and strong returns have been recorded by investors.

But don’t worry if you missed out. That’s because many analysts remain very positive on the sector’s outlook.

So, if you’re looking for exposure to this side of the market in FY 2025, it could be worth considering the exchange-traded funds (ETFs) in this article.

Here’s what you need to know about these funds:

BetaShares Global Cybersecurity ETF (ASX: HACK)

One pocket of the tech sector which is predicted to grow materially in the future is the cybersecurity industry.

In fact, Betashares notes that “an estimate of the total addressable market by McKinsey suggests that the cybersecurity market is $1.5-$2.0 trillion globally, and at best only 10% penetrated with a very long runway for growth.” This is expected to lead to cybersecurity revenue growing at an annual rate of 10.6% through 2024 to 2028.

This means that the companies included in the BetaShares Global Cybersecurity ETF could be well-placed to outperform in the coming years.

The BetaShares Global Cybersecurity ETF is up 26% since this time last year.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX tech ETF that could be a great option in FY 2025 is the BetaShares Asia Technology Tigers ETF.

This popular fund gives investors easy access to the best tech stocks in the Asian region. Though, it excludes Japan.

Many of these are the Asian region’s equivalents of the West’s biggest and best tech companies. This includes e-commerce giant Alibaba, search engine leader Baidu, iPhone manufacturer Taiwan Semiconductor Manufacturing Company, Temu owner Pinduoduo, and WeChat owner Tencent Holdings.

Over the past 12 months, the BetaShares Asia Technology Tigers ETF has risen 26%.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Possibly saving the best to last. A final option to look at is the BetaShares NASDAQ 100 ETF.

While this ETF isn’t strictly technology-focused, it is filled to the brim with many of the biggest and best tech companies that the world has to offer. This includes Apple, Nvidia, and Microsoft, to name just three.

Betashares notes that the Nasdaq 100 has outperformed over the last decade thanks largely to the innovation of the 100 companies included in the fund. The good news is that it expects this trend to continue. The fund manager said:

In order for companies to innovate and grow in the 21st century, investment in research and development (R&D) is crucial. The largest 15 companies on the Nasdaq are the biggest R&D spenders, allocating an average of 16.9% of their revenues to R&D over the past 12 months. It has been this spending on innovation in areas like enterprise, cloud computing, cybersecurity, and more recently AI that has ultimately led to underlying growth.

The BetaShares NASDAQ 100 ETF is up almost 30% since this time last year.

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