A Tale of Two ETFs

by Michela Menting | 2Q 2017 | IN-4624

There are two major exchange traded funds (ETF) that currently invest exclusively in cybersecurity; both have done exceedingly well in the past year. The first to market was PureFunds ISE Cyber Security ETF (HACK), which launched in November 2014 with US$1.2 billion assets currently under management. The other is the First Trust NASDAQ Cybersecurity ETF (CIBR), introduced in July 2015 with US$257.46 million assets. While HACK was launched at a propitious time (significant breaches and data leaks at Sony, JPMorgan, Home Depot, among many others that year) and has gained huge traction in its short lifespan, CIBR has been a fierce competitor and HACK has not failed to notice. In response, HACK recently announced lower annual fees, dropping from 0.75% to 0.6%. Technology ETFs have traditionally done well, but cybersecurity-specific ETFs are on a roll.

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