Invest
Avoiding another tech bubble through ETFs
As technology continues to be the fastest growing sector globally, investors worried about another dot.com boom have been advised to look at technology ETFs instead of trying to pick individual winners, suggests an industry expert.
Avoiding another tech bubble through ETFs
As technology continues to be the fastest growing sector globally, investors worried about another dot.com boom have been advised to look at technology ETFs instead of trying to pick individual winners, suggests an industry expert.
In a conversation with nestegg, BetaShares CEO Alex Vynokur explained how an ETF can protect against the losing shares and how technology can revolutionise the Australian economy.
The CEO explained picking the one or two winners from the current technology boom is difficult and that an ETF can simplify the process for investors.
“I think the important message here is in a diversified portfolio of technology companies, your risks are significantly diversified. And you don’t have that problem of having all of your eggs in one basket, basically,” Mr Vynokur said.
“Not every idea is a success, and not every business will be worth billions of dollars, but what is important is the sector as a whole, which is growing significantly.”
Mr Vynokur also believes as the Australian economy diversifies away from the big four banks and the mining companies, investors have an opportunity to cash in.
“If you look at the performance over the last six years, the S&P ASX Australian technology index has returned 16.6 per cent per annum compared with returns from the ASX 200 of 9.3 per cent per annum.
“It’s a very significant outperformance over a pretty long period return.”
The ETF provider stated investors looking to diversify away from blue chips and gain stronger growth should look into the tech sector.
“This is a sector which is a fantastic complement to a traditional existing portfolio because it can really provide genuine access to growth which ultimately any investor in equities is seeking,” Mr Vynokur said.
Finally, the fund manager believes by having an Australian index for technology, it will help support the economy at large.
My Vynokur concluded: “It will absolutely provide additional attention and additional focus on the potential of the Australian technology index; it will provide an additional source of capital, to the companies, to our constituents of the index, and ultimately, it will provide more investment dollars into the industry.
“This will result in more jobs. Technology contributes $22 billion to our economy. According to minister Karen Anderson, the Minister for Industry, Science and Technology, it has the potential to generate an additional 50 billion per annum. It’s employing over 720,000 Australians today. And it’s got a phenomenal future.”
About the author
About the author
Shares
Australian retail investors’ habits and trends revealed
The average Australian retail investor is younger, cocky about their skillset, and sees inflation as the biggest worry to their portfolio, an industry survey has revealed. ...Read more
Shares
Is this a repeat of 2000? Crypto, Reddit craze fuelling next bubble
As younger investors continue to turn to crypto assets and alternative news sources such as social media, some experts are suggesting we’re back to trends that led to the dotcom market crash. ...Read more
Shares
‘Impact matters more to retail investors than returns’
One of Australia’s many retail investing apps is sharing some insights into how consumers actually use their platform. ...Read more
Shares
Rising rates set to kill ‘unicorn investments’
Shifting economic strategy post-COVID-19 will lead to rising interest rates, causing the death of “unicorn investments”, an industry expert predicts. ...Read more
Shares
The surprising poster child for ESG investing
Investors looking to have the most impact on the world should not simply follow ESG values, but instead focus on companies that will be needed in a “post-carbon world”. ...Read more
Shares
5 tips to turn down the noise and stay focused as an investor
A surge in financial information, opinions and a natural inclination to focus on the negatives is leading to poorer short-term outcomes for investors, which is impacting long-term results, an economis...Read more
Shares
Why investors should expect modest returns this financial year
Regardless of the investment type, the highs of the 2020-21 financial year are unlikely to be replicated over the next 12 months, an industry expert has warned investors. ...Read more
Shares
Are ETFs and REITs a way for young Australians to build their stake in the property market?
Fractional property isn’t the only low-cost route into Australia’s property market jockeying for attention from younger investors. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Shares
Australian retail investors’ habits and trends revealed
The average Australian retail investor is younger, cocky about their skillset, and sees inflation as the biggest worry to their portfolio, an industry survey has revealed. ...Read more
Shares
Is this a repeat of 2000? Crypto, Reddit craze fuelling next bubble
As younger investors continue to turn to crypto assets and alternative news sources such as social media, some experts are suggesting we’re back to trends that led to the dotcom market crash. ...Read more
Shares
‘Impact matters more to retail investors than returns’
One of Australia’s many retail investing apps is sharing some insights into how consumers actually use their platform. ...Read more
Shares
Rising rates set to kill ‘unicorn investments’
Shifting economic strategy post-COVID-19 will lead to rising interest rates, causing the death of “unicorn investments”, an industry expert predicts. ...Read more
Shares
The surprising poster child for ESG investing
Investors looking to have the most impact on the world should not simply follow ESG values, but instead focus on companies that will be needed in a “post-carbon world”. ...Read more
Shares
5 tips to turn down the noise and stay focused as an investor
A surge in financial information, opinions and a natural inclination to focus on the negatives is leading to poorer short-term outcomes for investors, which is impacting long-term results, an economis...Read more
Shares
Why investors should expect modest returns this financial year
Regardless of the investment type, the highs of the 2020-21 financial year are unlikely to be replicated over the next 12 months, an industry expert has warned investors. ...Read more
Shares
Are ETFs and REITs a way for young Australians to build their stake in the property market?
Fractional property isn’t the only low-cost route into Australia’s property market jockeying for attention from younger investors. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
