ASX tech shares could produce exciting returns over the longer-term.
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ASX tech shares could be a way for investors to get exposure to exciting businesses.
Technology companies are often the ones that are producing the quickest growth because of the nature of software which is easy to replicate for clients and customers.
Here are two ASX tech share ideas to consider:
Betashares Nasdaq 100 ETF (ASX: NDQ)
This is an exchange-traded fund (ETF) that is invested in 100 of the biggest businesses that are listed on the NASDAQ.
It’s one of the investment products on the ASX that provides the largest exposure to the FAANG shares. That stands for Facebook, Apple, Amazon, Netflix and Google (Alphabet).
These are global businesses that have huge worldwide userbases.
But there are plenty more names in the portfolio beyond just the ones I mentioned.
Other tech shares include: Microsoft, Tesla, Nvidia, PayPal, Adobe, Cisco Systems, Broadcom, Texas Instruments, Qualcomm and Intuit. Many of the holdings in this ETF are either directly or indirectly changing the way we live our lives.
The annual management fee is 0.48%.
Past performance is not an indicator of future performance. Since inception in mid-2015, the net returns of the ETF have been 20.9% per annum.
There are some other holdings in there that aren’t technology businesses such as PepsiCo, Costco, Moderna, Mondelez and Starbucks.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador is an investment business that focuses on information technology and media sectors.
The company picks businesses that are seeking growth stage investment.
There are a few different factors that Bailador looks for when it invests in something.
The ASX tech share looks for companies that have been typically running for two to six years, that are run by the founders, have a proven business model with attractive KPIs, have the ability to generate repeat revenue, generate international revenue, have a “huge” market opportunity and require capital to grasp that opportunity.
The typical investment size is between $2 million to $10 million of equity.
It currently has a portfolio of different names.
Siteminder is described as the world leader in hotel channel management and distribution solutions for online accommodation bookings.
Bailador says Instaclustr is an open source data platform for cloud-based solutions that require immense scale, providing enterprise support and managed solutions for technologies such as Apache Cassandra.
Stackla is a social marketing platform that aggregates user-generated content that curates its display and integrates at various touch points within the marketing stack.
Straker Translations provides a cloud-based ‘hybrid’ translation platform that uses a combination of both machine translation and human refinement to rapidly speed up language translation.
Other investments in the ASX tech share’s portfolio include Rezdy, Brosa and Standard Media Index.
At the end of May 2021, its pre-tax net tangible assets (NTA) per share was $1.53. That compares to the current share price of $1.37.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETANASDAQ ETF UNITS and Bailador Technology Investments Limited. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.