ASX ETF mania: tech, AI, and clean energy funds power past records as investors chase global growth

Technology and AI infrastructure ETFs on the ASX are hitting record highs, fueled by robust investor demand for exposure to the entire AI ecosystem—from semiconductor giants and cloud infrastructure to robotics and cybersecurity firms. Funds like the Global X Ai Infrastructure ETF (AINF), which surged over 60% in the past year, and the Betashares Global Robotics and Artificial Intelligence ETF are capitalizing on accelerating capital spending by major US tech companies on data centers, chips, and power, confirming that AI growth is grounded in tangible infrastructure rather than just software hype. This broad-based expansion is supported by stronger-than-expected US earnings across multiple sectors, signaling that AI’s impact is deepening across industries such as healthcare, finance, and transportation rather than being confined to a handful of headline tech names.

Asian technology-focused ETFs are emerging as powerful complements to US-centric funds, offering investors diversified access to leading semiconductor manufacturers and digital service providers in South Korea, Taiwan, China, and beyond. The Betashares Asia Technology Tigers ETF, which climbed 82% over the last year, and the iShares MSCI South Korea ETF, up 170%, highlight the outsized role of companies like Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing Company in the global AI infrastructure boom. While these funds present a different risk-return profile compared to US tech ETFs, they provide crucial exposure to fast-growing markets driving the chip-intensive demands of AI and automation.

Cybersecurity ETFs are gaining prominence as indispensable components of the technology investment landscape amid rising digital risks associated with expanding cloud computing and AI adoption. The Betashares Global Cybersecurity ETF, featuring industry leaders such as CrowdStrike and Palo Alto Networks, underscores cybersecurity’s evolution into a non-negotiable business expense, while semiconductor ETFs like the Global X Semiconductor ETF provide strategic exposure to the foundational chipmakers powering AI workloads. Together, these thematic funds offer investors diversified access to critical technology sectors that underpin the digital economy’s security and performance.

Investors seeking a comprehensive yet diversified approach to AI can turn to ETFs like the Global X Artificial Intelligence ETF (GXAI), which spans semiconductors, robotics, software, and big data companies including Nvidia, Intel, and Broadcom. With AI adoption projected to soar to over 729 million users by 2030, GXAI provides a broad runway for growth across multiple industries without the need to pick individual winners, despite expected volatility. This thematic breadth reflects AI’s transition from niche applications to a foundational technology reshaping sectors from agriculture to healthcare, making such ETFs attractive long-term holdings amid ongoing digital transformation.

The Betashares Climate Change Innovation ETF (ASX: ERTH) has emerged as a flagship vehicle for investors seeking diversified exposure to the global clean energy transition, tracking up to 100 companies that derive at least half their revenues from products and services aimed at reducing carbon emissions. This includes sectors such as clean energy, green transport, waste management, and sustainable product development, offering a low-friction, single ASX trade solution for those who prefer broad thematic exposure over picking individual stocks. Despite some volatility and sensitivity to interest rates and policy shifts—highlighted by the 2025 US clean energy incentive rollbacks—ERTH rebounded strongly with a one-year return of approximately 24% by early 2026, reflecting improving clean energy sentiment and expectations of rate cuts.

Investor appetite for clean energy infrastructure is also driving interest in tangible assets and critical resource plays, with diversified entities like Brookfield Corporation and its subsidiaries offering exposure to multiple renewable projects managed by experienced teams. Meanwhile, thematic ETFs such as the Betashares Energy Transition Metals ETF (ASX: XMET) have surged 117% over the past year by focusing on essential minerals like copper, lithium, and cobalt, which are crucial for electrification, AI infrastructure, and EV production. This surge is underpinned by broader macro factors including government spending on clean-energy infrastructure, energy security concerns, and geopolitical tensions that are fueling demand for resource-focused ESG investments.

Solar power stands out as a dominant growth area within the clean energy thematic space, with the U.S. projected to install 56 gigawatts of new solar capacity by 2026—vastly outpacing nuclear power additions. Companies like First Solar and Canadian Solar are spotlighted as particularly attractive investments, benefiting from surging energy demand driven in part by AI infrastructure build-out. This solar momentum complements emerging clean energy innovations such as hydrogen, where the Global X Hydrogen ETF (ASX: HGEN) has gained over 85% year-to-date by investing in firms involved in hydrogen production, fuel cells, and electrolysers, signaling broadening investor interest across multiple clean energy frontiers.

The macroeconomic backdrop strongly supports these ESG and clean energy thematic ETFs, with global energy investment surpassing US$3 trillion in 2024 and approximately two-thirds of that directed toward clean energy, electrification, grid expansion, and storage solutions. This massive capital flow underscores a structural shift in the energy landscape, encouraging investors to seek diversified thematic exposure through ETFs that capture long-term trends in decarbonization and sustainability, despite near-term risks such as policy volatility and currency fluctuations.

Investors are increasingly turning to ASX-listed ETFs to diversify geographically beyond the traditional Australian and US markets, with a strong focus on Asian economies such as South Korea and Japan. The iShares MSCI South Korea ETF (IKO) has notably surged around 200% over the past year, propelled by heavy exposure to semiconductor giants Samsung Electronics and SK Hynix that are critical to the AI infrastructure boom. Similarly, the BetaShares Asia Technology Tigers ETF provides access to leading Asian tech firms like Baidu, Tencent, and Taiwan Semiconductor Manufacturing Company, allowing investors to tap into Asia’s unique digital growth drivers and large consumer bases.

Beyond country-specific plays, thematic and broad international ETFs are gaining traction as investors seek diversified exposure to long-term global trends and quality companies. For example, the Vanguard MSCI Index International Shares ETF offers a core global equity holding with over 1,000 stocks from developed markets including the US, Europe, and Japan, featuring blue-chip names like Apple, Microsoft, and Nestle. Meanwhile, funds like the Betashares Global Quality Leaders ETF focus on financially strong global companies such as NVIDIA and L’Oreal, emphasizing stability and consistent returns rather than speculative growth, reflecting a maturing appetite for quality-focused international diversification.

Japan is experiencing a structural reappraisal as an investment destination, driven by normalized inflation, improved corporate governance, and a renewed focus on dividends and capital allocation, attracting both retail investors and institutional heavyweights like Berkshire Hathaway. The BetaShares Japan ETF (HJPN), which has gained over 53% in the past year, exemplifies this trend by providing exposure to a market that combines compelling valuations with stronger balance sheets and more efficient capital use, offering Australian investors a valuable geographic diversification away from the more familiar US and Australian equities.

Emerging market ETFs excluding China, such as the iShares MSCI Emerging Markets ex China ETF (EMXC), have returned over 40% in the last year by capturing growth in countries like India, Taiwan, and South Korea while mitigating China-specific risks. This nuanced approach to geographic diversification allows investors to access dynamic emerging economies with differentiated growth profiles, complementing broader international exposure through ETFs like the Vanguard FTSE Asia Ex-Japan Shares Index ETF, which targets Asian markets outside Japan and China, thereby broadening the spectrum of global growth opportunities within portfolios.

Consistent, disciplined investing in ASX shares or ETFs, such as committing $500 monthly, can harness the power of compounding to build substantial wealth over decades—with projections showing growth to around $1 million after 30 years at a 10% average annual return. This buy-and-hold strategy requires weathering market volatility, including recessions and interest rate shifts, emphasizing patience and resilience to maximize long-term portfolio growth.

Diversification is a cornerstone of robust long-term portfolio construction, achieved effectively through a blend of core broad-market ETFs like Vanguard MSCI Index International Shares ETF (VGS) or iShares S&P 500 AUD ETF (IVV), combined with thematic ETFs targeting growth sectors such as technology, AI, and robotics. This approach mitigates risks from individual company downturns and captures structural trends, as seen with funds like Betashares Global Robotics and Artificial Intelligence ETF (RBTZ) and VanEck Morningstar Wide Moat ETF, which balances quality and valuation discipline.

A 10- to 25-year investment horizon is ideal for thematic ETFs focused on emerging sectors like AI infrastructure, cybersecurity, and automation, allowing investors to ride out short-term market noise and benefit from accelerating innovation and adoption. As noted in multiple analyses, ETFs such as Betashares S&P/ASX Australian Technology ETF (ATEC) and Betashares Global Cybersecurity ETF (HACK) offer exposure to transformative trends that may take a decade or more to fully materialize, rewarding patient investors who embrace volatility as opportunity.

Building a resilient, long-term portfolio does not require an overwhelming number of holdings; rather, a focused selection of low-cost, diversified ETFs that span global markets, quality companies, and undervalued sectors can balance risk and reward effectively. Incorporating dividend reinvestment and periodic purchases of quality names like Wesfarmers (WES) or Macquarie Group (MQG) alongside ETFs enhances compounding benefits and reduces timing risk, supporting sustained growth over 10+ years.