More Cyber Security Issues Boost HACK

One of the most innovative and popular ETFs to hit the market in a long time was given a boost by several front-page news stories in the last two weeks. The PureFunds ISE Cyber Security ETF HACK, the only cyber security ETF on the market, is in the spotlight once again as President Obama spoke at the Summit on Cybersecurity and Consumer Protection at Stanford University about the effort that needs to be made to prevent and combat the increasing number of cyber attacks and threats.

The headlines included the second largest U.S. health insurer, Anthem Inc ANTM, which has been involved in a serious data breech. The breech is said to have compromised the personal info of about 80 million customers/employees of ANTM. Finally a string of very impressive earnings reports by many of the ETFs top holdings has sent HACK up over 12 percent in February.

The most recent breech is just another on the long list of Fortune 500 companies such as Target Corp TGT, JP Morgan Chase and Co. JPM, and Ebay Inc EBAY,who’s networks and sensitive information have been compromised by hackers recently. Not only are the breeches becoming more frequent, they are also growing in scale. Hackers aren’t going after individuals or small companies, there going after some of the largest corporations in the world with billions in assets and the most to lose.

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 being FireEye Inc FEYE making up 5.4 percent of the ETF, Cyberark Software Ltd CYBR with a 5.2 percent holding, Qualys Inc. QLYS at 4.8 percent, and Proofpoint Inc PFPT coming in at 4.6 percent. Since its inception in mid-November the ETF is up 14 percent, and up 8 percent so far in 2015.

According to a report from the Global State of Information Security Survey 2015, cyber attacks across the globe have risen about 66 percent over the past five years and 48 percent from 2013. This is a very real and serious problem that many of our nations largest companies are going to have to deal with in the near future. With such a small number of companies to choose from and only one ETF, HACK is a no brainer for those looking to capitalize on the cyber security industries imminent demand.