According to the General Accounting Office, the Federal Government alone spent $938 million on cyber security in 2000. In 2015, the Federal Budget allots for $13 billion on cyber security spending, notes PureFunds. Said another way, the controversy surrounding “The Interview” is good for calling attention to HACK and creating a valid, albeit short-term trading opportunity in the ETF. However, the growth of cyber security incidents and the spending required to prevent against future attacks bode well for HACK’s long-term outlook.
HACK benchmarks to the ISE Cyber Security Index, “which tracks the performance of companies actively engaged in providing services for cyber security and for which cyber security business activities are a key driver of their business model. These cyber security services are designed to protect computer hardware, software, networks and data from unauthorized access, vulnerabilities, attacks and other security breaches,” according to PureFunds, which also sponsors the PureFunds ISE Junior Silver Small Cap Miners/Explorers ETF (NYSEArca: SILJ). [An ETF for the Booming Cyber Security Market]
VASCO (NasdaqGS: VDSI), Juniper (NasdaqGS: JNPR), Palo Alto Networks (NasdaqGS: PANW) Dow component Cisco Systems (NasdaqGS: CSCO) and Imperva (NYSE: IMPV) combine for 30.3% of the index’s weight.
HACK is home to 26 stocks and charges 0.75% per year, according to PureFunds data.
PureFunds ISE Cyber Security ETF
