Is TECH a good ETF?
TECH is the Global X Morningstar Global Technology ETF from Global X. It tracks the Morningstar Developed Markets Technology Moat Focus Index. We classify it under Intl, Thematic, and Tech. With about $332 million in assets it is a solidly established fund. Listed on the ASX since 2020-02-05 (over 6 years ago).
On a total-return basis, TECH has delivered 8.76% a year over 5 years (ranked 72nd of 188 ETFs we track), 13.55% a year over 3 years (ranked 79th of 226 ETFs we track), and 9.95% a year over 1 year (ranked 132nd of 308 ETFs we track).
The management fee of 0.45% is on the higher side. That's cheaper than the typical 0.48% for similar ETFs. If cost is your priority, FANG (0.35%) cover similar ground for less. It pays a moderate 3.33% yield.
Over the past 5 years its volatility has been elevated (annualised standard deviation around 21.41%), meaning noticeably larger swings than the broad market. Its 5-year Sharpe ratio of 0.35 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Things to watch
- Cheaper alternatives exist: FANG.
- Weak risk-adjusted returns (5-year Sharpe ratio 0.35).
- Highly concentrated single-theme bet — keep the position size small.
What TECH's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
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.