Things to know about trading the new S&P/ASX All Tech Index tomorrow.

The official launch of the S&P/ASX All Technology Index was held a little over a week ago but tomorrow you can start investing in it using your existing trading platform or broker.

The Index (XTX) is designed to be a broader, more inclusive index than the existing S&P/ASX 200 Information Technology Index.

However, in the past week it has received some criticism for not including manufacturing technology companies and that it is more expensive than other indexes you can invest in.

To explore these criticisms and get a better handle on the Index I spoke with the Alex Vynokur of BetaShares, the company behind it.

I have also posted the original media release about the Index below.

Also I was going to post my interview with CEO of Weebit Nano Coby Hanoch on Friday, but I thought it best to hold off till this coming week given all the other news about.

ASX, in partnership with S&P Dow Jones Indices (S&PDJI), today launched 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,” Mr Stevens said. “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.” 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. Eligibility for the index includes minimum float-adjusted market cap, daily traded value and liquidity thresholds. The index does not have a set number of constituents; its makeup can change at each quarterly rebalance. “Many of the companies included in the All Tech Index started as small caps and have grown into billion dollar companies,” Mr Stevens said. “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.” For more information please visit: www.asx.com.au/alltechindex.

DISCLAIMER AND IMPORTANT INFORMATION

I do not own shares in Titomic at the time of publishing this post. I also do not accept any payment from this company or any other companies I cover. Nor is my interview or blog in any way a recommendation and should not be seen as a form of financial advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.