ASX chief executive and managing director Dominic Stevens said in a statement on Friday, launch day, that the All Tech Index would help to enhance the profile of listed technology companies in Australia.
The new index will use S&PDJI methodology and will have 46 constituents at the start, with a combined market capitalisation of more than $100 billion.
Altogether, there are more than 200 ASX-listed technology companies valued at about $115 billion.
“We’ve seen tremendous growth in the number of technology companies listing on ASX and the quality of their performance recently," Stevens said.
"Over the last three years, the annualised total return from the S&P/ASX 200 has been around 10%, while the return from the new All Tech Index over the same period — if it had existed — would have been over 20%.
“The All Tech Index recognises the critical mass of technology companies listed on ASX. It provides investors with an opportunity to see how the sector is tracking and gives them a benchmark to measure its performance.”
Stevens said many of the firms on the index had started as small caps and had grown into billion-dollar companies.
“International firms, such as those from the US, New Zealand and Europe, also see the opportunity to list and grow on the ASX market. A number are included in this new index.
“Technology plays an increasingly important role in our lives. ASX will continue to develop the listed technology sector to provide companies with capital to grow and investors with access to exciting opportunities. A vibrant technology sector is also good for Australia. It helps drive economic growth, strengthens the relevance of our capital markets and encourages job creation and innovation onshore.”