New S&P/ASX INDEX - All Technology Index, page-8

Bell rings on S&P/ASX All Technology Index

Aside from being a crucial market tracker, the index also substantially bolsters the supply of capital to existing and emerging tech companies because it provides a gateway to institutional funding and an important alternative to often expensive private venture capital.

Banks, including the CBA, Westpac and NAB have thrown hundreds of millions at the venture sector, usually as a hedge to gain a foothold in emerging disruptors and competitors.

“We know that Australia has a strong pipeline of smaller tech companies considering how and where to raise capital,” Andrews said.

“The Index creates an opportunity for them to access later stage capital, raise their profile and fuel their growth.”

Executive general manager of listings, issuer services and investment for the ASX, Max Cunningham, also revealed that the XTX had already attracted its own exchange traded fund (ETF) that will launch with weeks through Betashares, which Cunningham described as “Australia’s largest home grown ETF provider”.

“BetaShares will launch an ETF over the S&P/ASX All Technology Index and if all goes to plan we expect that the BetaShares S&P/ASX Australian Technology ETF will commence trading just over a week after the index - on Wednesday the 5th of March - with the ticker ATEC,” Cunningham said.

“To put it into perspective, over the last three years the S&P ASX 200 annualised total return has been around 10 percent – while over the same period the technology companies who would have been in this index if it had existed, would have returned over 20 percent.”