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ATEC - BetaShares S&P/ASX Australian Technology ETF

Dona Ferentes

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The BetaShares S&P/ASX All Technology Index ETF had an inauspicious beginning. It began trading in the first week of March amid the first rumblings that there could be a coronavirus shutdown in Australia. The index plunged 34 per cent as investors panicked in the face of uncertainty about how COVID-19 would affect the local and international economies.

Those who argue in favour of diversification as a protection against concentration risk will see the merit in owning an ETF rather than one or two high-profile tech stocks.

The high dispersion in performance between index constituents can be seen in the fact that seven of them have gained at least 30 per cent in 2020 led by Pushpay Holdings, up 85 per cent, and Afterpay, up 62 per cent. However, nine index constituents have declined by at least 30 per cent this year.

The S&P/ASX All Technology Index is weighted by float-adjusted market capitalisation, subject to a single constituent weight cap of 25 per cent of the total index weight.

Securities included in the index must, as of the rebalancing reference date, have a minimum three-month average float-adjusted market capitalisation of $120 million.

Also, stocks require a minimum relative liquidity of 30 per cent and if any stock's relative liquidity drops below half of the 30 per cent threshold, it becomes ineligible and is removed at the next quarterly rebalancing.

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The high dispersion in performance between index constituents can be seen in the fact that seven of them have gained at least 30 per cent in 2020 led by Pushpay Holdings, up 85 per cent, and Afterpay, up 62 per cent. However, nine index constituents have declined by at least 30 per cent this year.
Did they miss this one?
Openpay.... They all seemed to follow Z1P's lead... Sezzle also sizzled again.
Screenshot_20200611-005836.png


F.Rock
 

Dona Ferentes

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Did they miss this one?
Openpay.... They all seemed to follow Z1P's lead... Sezzle also sizzled again.
It's an "active ETF", not passive. Currently 53 companies in it, with top 10 holdings amounting to 71% (in percentage terms 15, 12, 10, 7, 6, 5, 5, 4, 4 & 3%)

MER 0.48%pa. Current size $34mill

Only reset every quarter, so your examples may not feature until July (by which time, the gains have been made??)

APT .. AFTERPAY LTD
XRO .. XERO LTD
CPU .. COMPUTERSHARE LTD
REA .. REA GROUP LTD
CAR .. CARSALES.COM LTD
ALU .. ALTIUM LTD
NXT .. NEXTDC LTD
WTC .. WISETECH GLOBAL LTD
APX .. APPEN LTD
LNK .. ADMINISTRATION HOLDINGS L
TNE .. TECHNOLOGY ONE LTD
IRE . . IRESS LTD
MP1 .. MEGAPORT LTD
EML .. EML PAYMENTS LTD
WEB .. WEBJET LTD
BVS .. BRAVURA SOLUTIONS LTD
PME .. PRO MEDICUS LTD
NEA .. NEARMAP LTD
CDA .. CODAN LTD/AUSTRALIA
DTL .. DATA#3 LTD
KGN .. KOGAN.COM LTD
DHG .. DOMAIN HOLDINGS AUSTRALIA LTD
IFM . . INFOMEDIA LTD
HSN .. HANSEN TECHNOLOGIES LTD
AD8 .. AUDINATE GROUP LTD
FCL .. FINEOS CORP HOLDINGS PLC-CDI
IRI . . INTEGRATED RESEARCH LTD
RBL .. REDBUBBLE LTD
BTH .. BIGTINCAN HOLDINGS LTD
ELO .. ELMO SOFTWARE LTD
RHP .. RHIPE LTD
PPH .. PUSHPAY HOLDINGS LTD
DUB .. DUBBER CORP LTD
VHT .. VOLPARA HEALTH TECHNOLOGIES LT
PPS .. PRAEMIUM LTD
LVT .. LIVETILES LTD
CAT .. CATAPULT GROUP INTERNATIONAL L
CGL .. CITADEL GROUP LTD/THE
CL1 .. CLASS LTD
PCK .. PAINCHEK LTD
360 .. LIFE360 INC
ALC .. ALCIDION GROUP LTD
RAP .. RESAPP HEALTH LTD
OTW .. OVER THE WIRE HOLDINGS LTD
NET .. NETLINKZ LTD
AMS .. ATOMOS LTD
 
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I have a lot of confidence in Ozzie technology, we’re world leaders and some of our best inventions were never taken seriously by governments, they would rather export rocks and pay exorbitant money when it comes back.

ATEC seemed like a good etf so maybe it’s being hammered like everything else.
 
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Interesting composition of a technology index with companies such as Computershare, Link Market Services and Carsales included in the index. I get it to some degree but feel it is pushing the boundaries a bit on the definition.
 

Dona Ferentes

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ATEC tracks one of the newer ASX indexes in the S&P/ASX All Technology index (XTX).

The index was designed to be a smaller, localised version of the United States-based Nasdaq Composite Index (NASDAQ: .IXIC) while being broader and more inclusive than the existing S&P/ASX 200 Information Technology Index (ASX: XIJ).

The ASX 200 Information Technology Index covers tech companies in the ASX 200 only. However, the ASX All Tech Index encompasses a wider span of technology classifications and tracks not just the information technology sector but also consumer electronics, interactive media and services, and healthcare technology.

Top 10 (Afterpay is now Block and slipped down quite a way)
NameWeight (%)
XERO LTD10.0
COMPUTERSHARE LTD9.7
SEEK LTD9.0
WISETECH GLOBAL LTD7.8
CARSALES.COM LTD7.8
REA GROUP LTD7.2
NEXTDC LTD6.0
BLOCK INC4.9
ALTIUM LTD4.0
TECHNOLOGY ONE LTD3.5
 
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I guess that's one reason Marley Spoon, Kogan and everyone's favourite at the time NUIX are included in the index. I downloaded the holdings from Betashares web-site and had a gander at it. Confusing to me but that's normal.
 
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