If you're wanting to invest in the tech sector but aren't sure which shares to buy, then you might want to consider exchange traded funds (ETFs).
There are a number of ETFs out there that allow investors to buy a slice of some of the world's biggest and brightest tech companies.
One that could be worth considering is the BetaShares Asia Technology Tigers ETF (ASX: ASIA).
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Why this tech ETF?
The the BetaShares Asia Technology Tigers ETF gives investors exposure to some of the largest tech companies in the Asian market.
Due to how technological adoption in Asia is surpassing the West, the companies included in this ETF could be well-placed for growth over the next decade. At present there are a total of 50 companies included in the fund. Among its largest holdings you'll find Alibaba, Infosys, JD.com, Meituan Dianping, Pinduoduo, Samsung, and Tencent.
In respect to the latter, Tencent is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin, WeChat and QQ. In August, Tencent reported a 23% increase in half year revenue to US$42.3 billion. Underpinning this growth was a total of 1.251 billion monthly active users across its Weixin and WeChat platforms and QQ's 590.9 million monthly active users.
Another company in the fund is Meituan Dianping. It was founded in 2010 by Wang Xing as a copy of group buying company Groupon. Since then, it has shaken off its tag as the Groupon of China and now dwarfs it in size. During the June quarter, the company reported 628.4 million transacting users on its platform. They use its app to connect with local businesses for food deliveries, hotel bookings, movie tickets, and countless other services.
Concerns over a crackdown in the Chinese tech sector has dragged the ETF lower this year. While this is disappointing, it could be a buying opportunity for long term investors.
