This Cyber Security Fund’s Pullback Gives It a Bargain Price

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

We continue our current series on the most promising exchange-traded funds (ETFs) this year for growth investors by featuring the relatively new and very much in vogue PureFunds ISE Cyber Security ETF (HACK). This fund is noteworthy in that it was the first one created to target the cybersecurity industry and the ETF is only slightly more than a year old.

This fund includes top cybersecurity firms and weights its holdings based on market cap to provide exposure to the biggest companies foremost. The cybersecurity industry seems poised for a strong performance, as cyber-attacks around the world are growing at an alarming rate that shows no sign of slowing. For that reason, the products and services of the companies that are represented in HACK probably will be in more and more demand going forward. Any time you hear about a big company having its cybersecurity compromised, that’s a sign that there is still more work for cybersecurity companies to do.

View the current price, volume, performance and top 10 holdings of HACK at ETFU.com.

Despite this seemingly powerful trend, HACK has fallen 12.74% in the last 12 months. It has been tossed out along with most other growth-based investments lately, and it’s not clear that this really means the underlying companies are not good investments. And the ETF’s share price is up since its inception, and it could rise again in the coming months Assets managed for this fund clock in at about $775 million. It has an expense ratio of 0.75% and does not pay dividends.

Exclusive  A Full-Throttle Fortnight in Focus

hack_0204

As you might expect, this ETF is very much focused on technology. The top holdings in its portfolio include the biggest cybersecurity companies on the market: Cyberark Software (CYBR), 4.80%; Symantec (SYMC), 4.37%; AVG Technologies (AVG), 4.36%; Trend Micro, 4.35%; and Check Point Software (CHKP), 4.22%. In addition, investing in this subsector through an ETF brings diversity that buying individual stocks lacks.

If the idea of investing in this hot and relatively new sector seems attractive to you, PureFunds ISE Cyber Security ETF (HACK) provides one of the best ways to do so.

Remember to look for the current price, volume, performance and top 10 holdings of HACK at ETFU.com.

If you want my advice about buying and selling specific ETFs, including appropriate exit points, please consider subscribing to my Successful ETF Investing newsletter.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

previous article

Investment trend expert Chris Versace shows how it is still possible to turn a profit against the headwinds of a challenging market.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE