AUSTRALIAN TECHNOLOGY – 26/02/26
BUY AUSTRALIAN TECHNOLOGY ETF (ATEC)
Betashares S&P/ASX Australian Technology ETF (ATEC) provides investors with diversified exposure to Australia’s leading listed technology companies. The fund holds a portfolio of high-quality software, marketplace and technology-enabled businesses that operate dominant platforms in their respective industries.
The portfolio is anchored by established market leaders including Xero (XRO), CAR Group (CAR), WiseTech Global (WTC), REA Group (REA), Technology One (TNE), Pro Medicus (PME) and SEEK (SEK). These businesses generate recurring revenue, operate with strong margins and high returns on capital, and in many cases hold number one or number two positions in their markets globally. Importantly, recent results across several of these names show revenue growth and earnings guidance broadly intact despite a sharp share price pullback.
Australian technology shares have experienced a material de-rating over the past year. Concerns around higher interest rates, valuation compression and the potential impact of artificial intelligence (AI) on traditional software models have weighed heavily on sentiment. As a result, many leading names are now trading well below their historical valuation multiples, in some cases at the lowest forward multiples seen in years.
In our view, the market has over-reacted and now presents investors with a compelling buying opportunity into high-quality Australian technology names. While AI introduces competitive pressure, it also creates productivity opportunities for established businesses with strong moats, deep data, embedded workflows and long-standing customer relationships. The dominant businesses within ATEC are investing in AI capabilities to enhance their products, improve customer outcomes and defend their competitive positions.
Given the broad sector pullback that has seen ATEC’s price fall more than 36% from around $33.00 to $21.00 at the time of writing (see chart below), we see it as an excellent opportunity to gain exposure to a diversified mix of high-quality Australian technology businesses at historically cheap valuations, with long-term structural growth drivers still firmly in place that will strongly benefit client portfolios over the long term.
For more information or personal advice, please contact your adviser.
Source: IRESS
Important Disclaimer
The directors, employees and authorized representatives of PPN Wealth do not guarantee the information in this report to be complete, up to date, accurate nor applicable to your personal circumstances. This is general investment advice only. You should not act on recommendations in this report without discussing proposed actions with your PPN Wealth adviser to ensure recommendations are suitable to your circumstances.
The principals, associates and employees of PPN Wealth may have investments in the securities or companies referred to in this report.
This report may not be distributed in any way without the prior permission of PPN Wealth. The directors, employees and authorized representatives of PPN Wealth do not accept any liability for third parties’ actions relating to this report.
