ASX ETFs that target undervalued sectors

One of the emerging stories this year has been the negative sentiment around healthcare and technology shares. 

Global technology shares have suffered due to AI integration and replacement fears. 

Meanwhile, healthcare has also lagged, potentially due to investors shifting into sectors with clearer near-term growth catalysts.

However, this recent weakness may now mean these sectors trade at a valuation discount to the broader market. 

If you are optimistic on the long-term growth of technology or healthcare shares, here are some ASX ETFs to consider. 

Betashares S&P Asx Australian Technology ETF (ASX: ATEC)

Technology shares are largely underrepresented in Australia compared to dominant sectors like big banks and miners. 

Many Australian tech companies have endured heavy sell-offs due to fears that AI could cut into core products. 

This has led to many positive ratings from brokers, suggesting these companies have now been oversold. 

The Betashares ATEC fund combines many of these Aussie tech companies into one ASX ETF. 

It provides exposure to approximately 47 leading ASX-listed companies in a range of tech-related market segments such as information technology, consumer electronics, online retail and medical technology.

It is down 20% year to date. 

Etfs Morningstar Global Technology ETF (ASX: TECH)

For a more global exposure to technology shares, this fund offers exposure to companies based in the United States, Europe and Asia. 

It targets companies positioned to benefit from the increased adoption of technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

The fund has fallen almost 17% year to date. 

BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)

Global healthcare shares have also had a soft start to 2026. 

For investors looking to target a defensive sector, this ASX ETF provides exposure to the largest global healthcare companies (ex-Australia), hedged into Australian dollars.

At the time of writing it is made up of 60 underlying holdings, which could be set to benefit in the long term due to ageing populations, rising living standards and ongoing medical advancements. 

These are expected to support increasing ongoing demand for healthcare products and services.

The fund is down 2.5% since the start of the year. 

iShares Global Healthcare ETF (ASX: IXJ)

This fund aims to provide investors with the performance of the S&P Global 1200 Healthcare Sector Index. 

It offers a more diversified option for global healtchare stocks.

This index is designed to measure the performance of global biotechnology, healthcare, medical equipment and pharmaceuticals companies and may include large-, mid- or small-capitalisation stocks.

The fund has fallen more than 7% so far in 2026. 

The post ASX ETFs that target undervalued sectors appeared first on The Motley Fool Australia.

More reading

• 5 fantastic ASX ETFs to buy and hold for five years
• 3 ASX ETFs with a focus on global defensive shares
• Have ASX technology shares finally hit rock bottom?
• 3 ASX ETFs down 25% that could be big long-term winners
• Why now could be a great time to buy these amazing ASX ETFs

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.