2 ASX ETFs I’d buy for a tech rebound in 2023

A young man in glasses writes down his stock picks in his living room.

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The technology space has been hit hard amid high interest rates. But I think there are some great ASX exchange-traded funds (ETFs) that could be exciting opportunities for a tech resurgence.

If an item drops 50% from $100 to $50, it only needs to return to $75 to generate a 50% return from that initial low of $50.

I don’t think interest rates will go back below 2% in the foreseeable future, maybe for the rest of this decade. But, technology valuations now seem very reasonable, so I think some new technology ETFs could do well in the next year or two.

Betashares Cloud Computing ETF (ASX: CLDD)

The unit price of the Betashares Cloud Computing ETF is down about 45% since November 2021. The idea of ​​this ETF is to give investors exposure to the cloud computing trend. Betashares explains:

Cloud computing has been one of the fastest growing segments of the technology industry, and given the world’s digital data and software applications are still stored outside of the cloud, continued strong growth is predicted.

An increasing number of different services can now be offered online, giving the ASX ETF increasing diversification. If you’re looking at major stocks, these are some of the biggest positions: Coupa Software, Sinch, Five 9, Work, Work day, Shopify again SPS Commerce.

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With the combined valuation of the companies involved now very low, I think that this group of businesses can recover well if the pessimism of investors starts to decrease when interest rates stop rising.

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Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is one of the biggest losers – down nearly 30% since November 2021.

I think this ETF is invested in some of the best companies in the world, they are world leaders in what they do. I am talking about words like an apple, Microsoft, Alphabets, Amazon.com, Nvidia, PepsiCo, Costco, Cisco Systems, Intuitive Surgical again Modern.

Interest rates have risen in the US to try to control inflation in the country. A recession may be on the cards. But, I don’t think the outlook will always look hopeless, especially if you think in the long term. I think this ASX ETF has an attractive future ahead.

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If prices drop too much, there may be a negative impact event going on in the world. But this is where I think investors should be more optimistic about investing and making long-term returns. Be selfish when others are afraid, as the saying goes.

There won’t be many times when the Betashares Nasdaq 100 ETF drops 30%, so I think this would be a good time to invest and be patient after that.

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