Is ATEC a good ETF?
ATEC is the BetaShares S&P/ASX Australian Technology ETF from BetaShares. It tracks the S&P/ASX All Technology Index. We classify it under AU, Thematic, and Tech. With about $600 million in assets it is a solidly established fund. Listed on the ASX since 2020-03-04 (over 6 years ago).
On a total-return basis, ATEC has delivered 1.5% a year over 5 years (ranked 153rd of 188 ETFs we track), 5.01% a year over 3 years (ranked 179th of 226 ETFs we track), and -30.68% a year over 1 year (ranked 304th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.48% is on the higher side. For comparison, similar ETFs average around 0.39%. If cost is your priority, TECH (0.45%) and SEMI (0.45%) cover similar ground for less. It pays a moderate 1.86% yield.
Over the past 5 years its volatility has been high (annualised standard deviation around 25.14%), meaning a bumpy ride with deep drawdowns. Its 3-year Sharpe ratio of 0.15 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 18% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Things to watch
- Has lagged most peers over 1 year (304th of 308).
- Pricier than similar ETFs, which average around 0.39%.
- Cheaper alternatives exist: TECH and SEMI.
- Weak risk-adjusted returns (3-year Sharpe ratio 0.15).
- High volatility (25.14% over 5 years) — expect deep drawdowns.
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 55% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What ATEC's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
Concentrated in technology and high-growth innovation. The highest long-run growth potential on offer, paired with the deepest drawdowns.
- Market regime
- Very sensitive to interest rates and sentiment: powers ahead when money is cheap and optimism is high, and falls hardest when rates rise or risk appetite sours. Low dividends, high volatility.
- In a portfolio
- A long-horizon, high-conviction holding for investors with a strong stomach. Size the position so a 40-50% drawdown wouldn't derail your plan.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.