ETF Shares cuts US Tech ETF fee to 0.17%

ETF Shares has lowered the management fee on its ETFS US Technology ETF to 0.17% per year, positioning the fund as one of the lowest-cost options for Australian investors seeking exposure to leading US technology companies through the ASX. The fee reduction, effective July 27, cuts the annual charge from 0.29% to 0.17% as competition intensifies among providers to attract investors looking for cost-effective access to global equity markets.

Portfolio Focus and Sector Shifts

Unlike many traditional US technology ETFs, the fund includes companies such as Alphabet and Meta Platforms, which sit outside the information Technology sector under Global Industry Classification Standard (GICS) rules. These companies are involved in artificial intelligence, digital advertising, cloud computing, and digital infrastructure. ETF Shares chief executive Cliff Man said the fund was designed to better reflect how the technology sector has evolved.

“Technology has become one of the most important investment themes of the past decade, but the way traditional sector indices define technology does not always reflect the companies that are driving innovation today,” Man said. “Companies such as Alphabet and Nvidia are central to the development of artificial intelligence, digital infrastructure and the modern internet economy, yet they sit outside the traditional Information Technology sector classification.”

While the fee cut helps lower the cost of holding the underlying assets, the fund’s specific composition means it captures a different slice of the market than a standard tech benchmark. This approach attempts to align the portfolio with the actual economic drivers of the modern technology setting rather than a rigid classification system.

The fee reduction comes as Australian investors increasingly seek global equity exposure, with many turning to US-listed ETFs despite the additional costs associated with offshore investing. Man argued that ASX-listed ETFs provide a simpler and more cost-effective alternative for many investors.

“Buying an ETF on the ASX provides Australian investors with a simple and efficient way to access global markets without needing to open an offshore brokerage account,” he said. “Investors who buy US-listed securities directly can face additional costs, including foreign exchange spreads charged when converting Australian dollars into US dollars, as well as potential platform, custody or account fees associated with holding international securities.”

“An ASX-listed ETF provides investors with Australian-dollar trading, local market hours and the convenience of holding the investment alongside their other ASX holdings,” he added.

ETF Shares said the fee reduction reflects its broader strategy of bringing popular global investment exposures to Australian investors through locally listed products.