ANZ ETFS Management has launched the ANZ ETFS Morningstar Global Technology ETF (ASX: TECH), the first Australia-listed ETF to give investors exposure to global technology stocks.

The ETF uses Morningstar’s “wide moat” methodology to select technology stocks with a sustainable competitive advantage.

The fund tracks the Morningstar Developed Markets Technology Moat Focus Index which uses Morningstar’s “Wide Moat” research methodology to identify global technology companies that have a competitive advantage that Morningstar believes will endure for at least ten years. This subset is further narrowed down by selecting those stocks with cheap valuations.

The index currently has 32 constituents including some of the world’s largest technology stocks like Facebook, Amazon and Alphabet, however, the largest constituent at present is Adobe Systems with 4.6%. The index is primarily weighted to the US, which comprises 84% but also includes Australia (11%), Japan (3%) and Canada (2%).

Kris Walesby, ANZ ETFS Head, said: “Technology is one of the largest sectors in global equities markets but tends to be under-represented in Australian investors’ portfolios. This ETF provides an opportunity to diversify into quality global companies with industry leading positions.

“Many investors are keen to have a stake in the strong growth potential of the world’s famous tech names, and through an ETF they can do it easily and for a lower price than buying shares directly.”

TECH is physically replicated, listed in AUD and has an expense ratio of 0.45%. The index has returned 24% per annum over the past five years.

European investors wishing to gain exposure to global technology stocks could try the SPDR MSCI World Technology UCITS ETF (LON: WTEC), which has a total expense ratio of 0.30%.