In the fast-paced world of technology investments, two ASX tech shares have emerged as standout performers, capturing the attention of investors globally. TechnologyOne Ltd (ASX: TNE) and the Global X Fang+ ETF (ASX: FANG) have demonstrated remarkable growth, making them compelling choices for those looking to capitalize on the tech sector’s potential.
TechnologyOne, a global enterprise software provider, has seen its share price soar by an impressive 113% over the past year. Meanwhile, the Global X Fang+ ETF, which offers exposure to ten of the largest US tech companies, delivered a net return of 34.9% in the year ending June 2025. These figures highlight the robust performance and potential of these investments.
TechnologyOne: A Defensive Software Powerhouse
TechnologyOne Ltd, headquartered in Australia, provides essential enterprise software solutions to over 1,300 organizations worldwide, including governments, councils, and educational institutions. The company’s software is integral to the operations of its clients, making its earnings base highly defensive.
In its FY25 first-half results, TechnologyOne reported a 31% increase in net profit after tax (NPAT) to $63 million and a 21% rise in total annual recurring revenue (ARR) to $511.1 million. The company has set an ambitious target to reach at least $1 billion in ARR by FY30.
“The combination of rising revenue and improving margins bodes well for the ASX tech share’s bottom line and could help support further gains for the TechnologyOne share price in the coming years.”
TechnologyOne’s strategy focuses on continuous investment in new features and expanding its client base, which has been a key driver of its impressive growth. The company also expects its global software solution to benefit from economies of scale, potentially expanding its profit before tax margin to at least 35% in the long term.
Global X Fang+ ETF: A Gateway to US Tech Giants
The Global X Fang+ ETF offers Australian investors an opportunity to invest in ten of the largest and most influential technology companies in the United States. The ETF’s portfolio includes Broadcom, Netflix, Nvidia, Meta Platforms, Apple, Microsoft, Crowdstrike, ServiceNow, Amazon.com, and Alphabet.
These companies are at the forefront of innovation in areas such as AI, cloud computing, digital advertising, and cybersecurity. The ETF regularly rebalances its portfolio to maintain equal weightings among its holdings, ensuring a diversified exposure to these tech leaders.
“In the year to 30 June 2025, the Global X Fang+ ETF delivered a net return of 34.9% and in the prior five years, it has returned an average of 30.5%.”
While past performance is not indicative of future returns, the ETF’s track record and the growth potential of its constituent companies suggest it could continue to outperform the broader market in the coming years.
Implications and Future Outlook
The impressive performance of TechnologyOne and the Global X Fang+ ETF underscores the potential of ASX tech shares as a lucrative investment avenue. As technology continues to evolve and integrate into various sectors, companies like TechnologyOne that provide essential software solutions are likely to see sustained demand.
Similarly, the Global X Fang+ ETF’s exposure to US tech giants positions it well to benefit from ongoing advancements in technology and digital transformation. These companies are not only leaders in their respective fields but also have multiple growth avenues, from AI to self-driving cars.
Investors looking to capitalize on the tech sector’s growth should consider the long-term potential of these ASX tech shares. With strong fundamentals and strategic growth plans, both TechnologyOne and the Global X Fang+ ETF present compelling opportunities for those seeking to enhance their investment portfolios.
As the tech landscape continues to evolve, staying informed and proactive in investment decisions will be crucial. The success of these shares serves as a reminder of the importance of strategic investment choices in a rapidly changing world.
