Invest in Cyber Security with New ETF

An innovative new ETF released on November 11^th now gives investors a way to capitalize on one of the fastest industry’s of late, cyber security. The PureFunds ISE Cyber Security ETF HACK is a great way to profit off the growing number of cyber attacks and data breaches that companies and consumers have experienced recently. And more importantly are trying to prevent on a daily basis.

HACK consists of 30 companies that focus on infrastructure, software and hardware, as well as firms that offer consulting and monitoring of cyber risks. The top individual holdings are VASCO Data Security Intl Inc VDSI making up 9.2 percent of the portfolio, Imperva Inc. IMPV with a 7.9 percent holding, Qualys Inc. QLYS at 5.6 percent, and Palo Alto Networks Inc. PANW coming in at 5.5 percent. The ETF offers exposure to four countries with the following weightings: United States at 86 percent, Israel at 9 percent, Japan at 4 percent, and the Netherlands rounding it out at 2 percent.

This ETF is unique because although it is in the technology sector it will likely add diversity to most technology-heavy portfolios. If capital expenditure spending were to decrease for technology companies across the industry, the cyber security companies like the ones in HACK would be less affected. This is due to cyber security being an area where many companies cannot afford to tighten their wallets; there is too much at risk. As more and more info is stored in cloud-based programs and more payments are processed through a mobile or online platform, the need for cyber security will only increase.

The ETF concentrates on a niche sector with companies that are considered to have above-average volatility. That being said when added to a well-diversified portfolio it could essentially add reward potential without adding a large amount of risk due to the diversification.