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Key topics and insights:
Potential opportunity in (ASX:GAME) despite broad SaaS sell-off Cautious stance on (ASX:GPEQ) due to private equity’s software exposure Cybersecurity seen as a strong defence and infrastructure thematic Concern that high software weightings heighten risk amid AI and LLM uncertainty
Andrew Wielandt from DP Wealth Advisory outlines why a trio of “unloved” ETFs may be worth a fresh look, while still warranting caution. Wielandt highlights the BetaShares Video Games and Esports ETF (ASX:GAME), noting it manages about $124 million and is heavily tilted to interactive home entertainment rather than pure software. With software exposure under 10%, he states that the broad sell-off in software-as-a-service (SaaS) may have unfairly dragged this ETF lower, and recent strength in technology names could make (ASX:GAME) worth revisiting.
Turning to private equity, Wielandt points to the VanEck Global Listed Private Equity ETF (ASX:GPEQ), which holds major names such as KKR, BlackRock and Apollo. He is more cautious here, arguing that private equity has significant exposure to software businesses. If large language models materially disrupt SaaS, he suggests these holdings could face valuation “haircuts”.
On cybersecurity, Wielandt sees a compelling long-term defence and infrastructure disruption thematic. However, he flags concern around one global cyber ETF with about 86% software exposure, plus the BetaShares Global Cybersecurity ETF (ASX:BUGG). Until the impact of large language models on SaaS is clearer, he prefers a circumspect stance despite the strong secular cyber demand case.
