It is fair to say the technology sector has been under significant pressure this year.
Concerns around artificial intelligence (AI) disruption, shifting software economics, and stretched valuations have created sharp swings across many tech-heavy portfolios. While some investors are happy to ride it out, others may prefer exposure to sectors less exposed to AI headlines.
Here are three ASX exchange traded funds (ETFs) that steer clear of heavy technology concentration and offer diversification into different parts of the global economy.
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iShares Global Consumer Staples ETF (ASX: IXI)
Consumer staples are about as far from speculative tech as you can get.
The iShares Global Consumer Staples ETF invests in global household brands that sell everyday essentials. Its holdings include companies such as Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Walmart (NYSE: WMT).
These businesses generate revenue from products people buy regardless of market sentiment. Demand for groceries, beverages, cleaning products, and personal care items tends to remain steady through economic cycles.
In volatile markets, defensive earnings streams can provide stability. The iShares Global Consumer Staples ETF offers exposure to global brands with pricing power and resilient cash flows, without the heavy technology weighting seen in many broad market indices.
Betashares Global Defence ETF (ASX: ARMR)
Geopolitical tensions and rising defence budgets have pushed military spending higher across many developed nations.
The Betashares Global Defence ETF provides investors with exposure to global defence and aerospace companies such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and BAE Systems (LSE: BA).
These companies generate revenue from long-term government contracts and defence programs. Their earnings are influenced more by national security priorities than by developments in Silicon Valley.
While defence stocks can still experience volatility, their growth drivers are tied to structural government spending rather than consumer technology trends. This fund was recently recommended by analysts at Betashares.
Global X Battery Tech & Lithium ETF (ASX: ACDC)
The Global X Battery Tech & Lithium ETF focuses on stocks involved in lithium mining, battery production, and electric vehicle supply chains.
Holdings include Albemarle (NYSE: ALB), Tesla (NASDAQ: TSLA), and Contemporary Amperex Technology. The fund’s performance is driven primarily by demand for electric vehicles, energy storage systems, and battery materials.
Lithium prices have been strengthening again amid renewed demand, and the long-term electrification trend remains intact. This theme is more connected to energy transition and industrial demand than to software or AI disruption fears. This fund was recently recommended by the team at Global X.
