Cybersecurity ETF Closes In On $1 Billion Mark
If there is one theme in the market that has been red-hot this year, it’s cybersecurity stocks. The rash of online security breaches has shined a bright spotlight on the need for increased attention to Internet data theft and one ETF has been cashing in.
A Closer Look At HACK
The PureFunds ISE Cyber Security ETF (NYSE: HACK) is the first ETF of its kind to invest in a portfolio of 31 niche technology stocks. These companies are engaged in the bolstering of online defenses, identity theft prevention and other hardware related services.
HACK has, just seven months ago, entered the market and has already accumulated $928 million in total assets. It appears on track to easily top $1 billion in assets this year, which is no small feat for an industry-specific fund.
This ETF has quickly become the “go to” spot for investors looking for a diversified group of stocks in a fast-moving industry group. HACK charges an expense ratio of 0.75 percent for ongoing maintenance of the fund.
HACK Thus Far
So far this year, HACK has gained over 20 percent and recently hit new all-time highs. Those gains are admirable when compared to the sector benchmark Technology SPDR (ETF) (NYSE: XLK), which has gained just 4.5 percent in 2015.
HACK's Holdings, Investors And Peers
Top holdings in this ETF include online security firms Fireeye Inc (NASDAQ: FEYE) and Cyberark Software Ltd (NASDAQ: CYBR). In addition, each stock is given an equal percentage of the overall assets to allow smaller firms to have a more pronounced impact on the total return of the fund.
While investors are clearly on board with the explosion of growth in cybersecurity, ETF providers are also taking note as well.
First Trust has filed to list the First Trust NASDAQ CEA Cybersecurity ETF, which will be the first direct competitor for HACK. This new ETF will likely be available later in 2015 or early 2016.
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