Australian Securities Exchange (ASX) has announced that it has teamed up with S&P Dow Jones Indices (S&PDJI) to launch the S&P/ASX All Technology Index (All Tech Index), ahead of its go-live on Monday, 24 February. The new index captures ASX-listed companies in the fast-growing technology sector.
ASX CEO and Managing Director, Dominic Stevens, said that the All Tech Index will enhance the profile and understanding of listed technology companies in Australia, and increase opportunities for investors.
We’ve seen tremendous growth in the number of technology companies listing on ASX and the quality of their performance recently. Over the last three years, the annualised total return from the S&P/ASX 200 has been around 10 per cent, while the return from the new All Tech Index over the same period—if it had existed— would have been over 20 per cent.
The All Tech Index recognises the critical mass of technology companies listed on ASX. It provides investors with an opportunity to see how the sector is tracking and gives them a benchmark to measure its performance,” he added.
The All Tech Index operates under an S&PDJI methodology and at launch will have 46 constituents with a combined market capitalisation of over $100 billion. In total, there are more than 200 listed technology companies on ASX valued at almost $115 billion.
Dominic Stevens further explained:
Many of the companies included in the All Tech Index started as small caps and have grown into billion dollar companies. International firms, such as those from the United States, New Zealand and Europe, also see the opportunity to list and grow on the ASX market. A number are included in this new index.
Technology plays an increasingly important role in our lives. ASX will continue to develop the listed technology sector to provide companies with capital to grow and investors with access to exciting opportunities. A vibrant technology sector is also good for Australia. It helps drive economic growth, strengthens the relevance of our capital markets and encourages job creation and innovation onshore.