ETF Securities, a leading independent ETF provider, has notched an important milestone with its ETFS Morningstar Global Technology ETF (ASX code: TECH) passing the $100 million mark.
The ETF, launched in April 2017 and offering investors global exposure to 37 technology companies from the US, Japan, Germany and Australia, has returned 27.1 per cent per annum since inception, outperforming the Nasdaq 100 Index by more than 3.5 per cent per annum.
ETF Securities Chief Executive Officer Kris Walesby says: “TECH’s performance since April 2017 reflects the benefits of only investing in quality companies and the outcome that’s achieved by screening them according to their Morningstar Economic Moat rating.
“This rating measure examines companies from the perspective of their business model in terms of being able to defend their market position in a sector where disruption is often second nature.
“Moat ratings are only afforded to those companies that boast well-established, high-quality businesses. This rating model is then sub-divided into Wide Moat and Narrow Moat companies, with the former having the highest rating due to the expectation that they will be able to maintain above average returns for the next two decades.”
TECH holds 14 Wide Moat companies and 23 Narrow Moat companies.
Walesby says TECH has also benefited from the global growth in the Information Technology (IT) sector over the past five years.
“It’s been a remarkable phenomenon with the IT sector contributing nearly one-third of total equity growth over this period — more than double consumer discretionary, the next best performing sector.”
“Although this growth has not enjoyed a smooth trajectory, the reality is technology is having an enormous impact on our daily lives and is likely to do so for the foreseeable future. It’s this growth that TECH is capturing.”
Walesby says while the technology sector offers exciting opportunities for investors, it also comes with risks. “Investors need to be cognisant of ensuring that growth comes at a reasonable price, look for attractively price companies with strong fundamentals and sound business models, and diversify globally.”
ETF Securities offers three other ETFs in its Future Present product suite: Global Robotics and Automation (ASX: ROBO); Battery and Tech Lithium (ASX: ACDC); and Biotech (ASX: CURE).
About ETF Securities
ETF Securities is Australia’s second oldest ETF provider and the only truly independent ETF manager. Founded in 2003 the firm uses transparent and cost-effective exchange traded products (ETPs) to enable Australian investors to achieve their desired outcomes, while also intelligently diversifying their portfolios.
It offers products across four main categories: Future Present, Yield, International, and Commodities. The total funds under management of all ETF Securities products now stands at A$1.8 billion (as at 15 November 2019).
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