ATEC offers diversified exposure to Australia’s beaten-up technology sector – at the moment, the 5 largest holdings are Computershare (11%), Xero (10%), NEXTDC (8%), CAR Group (8%), and Pro Medicus (8%). Computershare (CPU) wouldn’t be our top pick for a recovery in the space, but the balance of the ETF is on point.
The “AI Disruption Trade” has weighed heavily on ASX tech stocks, which, combined with rising bond yields, creates a major headwind for the growth sector and the ETF, let alone its high beta to investors pulling the plug on risk. Hence, we can see lower prices in the coming weeks, but the risk/reward is improving rapidly with the sector “looking for a low” since April.
- We cannot rule out the ATEC ETF making a new low for 2026, but if it does, we will be monitoring it closely.
MM is neutral towards the ATEC ETF around $21
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