Market Overview

Cybersecurity ETF Has A Treat For Investors: Lower Annual Fees

Cybersecurity ETF Has A Treat For Investors: Lower Annual Fees

With all the talk of Russia's alleged cyber interference in the 2016 U.S. presidential election and news of proven cyber security breaches, the PureFunds ISE Cyber Security ETF (NYSE: HACK) has been getting plenty of attention this year.

More importantly, HACK, the first and still the largest exchange-traded fund dedicated to cybersecurity stocks, is higher by 15.3 percent year to date. HACK is another treat for investors: a lower annual fee.

Low Management Fee

HACK's new management fee, which went into effect at the start of May, is 0.6 percent, or the equivalent of $60 on a $10,000 investment. That is down from 0.75 percent per year.

“Since May 1, there have been net positive flows of approximately $160 million into HACK,” according to a statement from New Jersey-based ETF Managers Group (ETFMG). “The net flows over this period constitute around 42 percent of the $376.8 million net positive flows into the Fund this year. HACK's assets under management as of 06/09/2017 are $1,110,056,395.”

With over $1.1 billion in assets under management, HACK is more than quadruple the size of the other dedicated cyber security ETF on the market.

More Appeal: Stocks, Index And Expert's Take

HACK holds 35 stocks and tracks the ISE Cyber Security Index. The ETF's top 10 holdings include well-known cybersecurity names, such as FireEye Inc (NASDAQ: FEYE), Juniper Networks, Inc. (NYSE: JNPR) and Symantec Corporation (NASDAQ: SYMC).

"Market research firm Gartner says global spending on IT security is set to increase 8.2 percent in 2015 to $77 billion, and the world will spend $101 billion on information security in 2018," according to Cyber Security Ventures. "The cybersecurity market is estimated to grow to $170 billion (USD) by 2020, at a Compound Annual Growth Rate (CAGR) of 9.8 percent from 2015 to 2020, according to a report from Markets and Markets. The aerospace, defense, and intelligence vertical continues to be the largest contributor to cybersecurity solutions."

Related Links:

The Blame Game: The Definitive Guide To Who's At Fault For The Ransomware Cyberattack

PureFunds Talks WannaCry Fallout, Cybersecurity Stocks


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