No, it is not one of the several dedicated South Korea ETFs trading in the U.S., but rather the PureFunds ISE Cyber Security ETF (NYSEArca: HACK).
When HACK debuted just over a month ago, naysayers may have been apt to say the new ETF was too narrowly focused. However, while HACK is unlikely to ever the standard and arguably boring broad markets that line so many portfolios, the new fund has gained instant credibility and assets in the wake of hacking imbroglio surrounding Sony’s (NYSE: SNE) “The Interview.” [New ETF Looks to Stop the Hackers]
For now, it looks like “The Interview” will not be widely viewed by moviegoers. So perhaps it is not a coincidence that HACK jumped 4.7% last week to close at the highest levels of its short life. Nor is it a coincidence that HACK has added over $24.3 million in new assets this month. As of Dec. 9, HACK had $53.4 million in assets under management, which is an enviable start for any new ETF.
Underscoring the potential HACK has to continue cementing its status as a solid satellite tech ETF trade is that Sony is far from the only marquee company to suffer a major data breach.
Recently, major U.S. companies, such as Home Depot (NYSE: HD), J.P. Morgan Chase (NYSE: JPM) and Target (NYSE: TGT) have been victimized by data breaches, underscoring the importance of products and services provided by the companies featured in HACK.
In October, J.P. Morgan Chase CEO Jamie Dimon said the banking giant will likely double its cyber security spending to $500 million within the next five years.
Speaking of HACK’s long-term potential, each year cyber security incidents cost the global economy $400 billion and the rate of such incidents has been growing at a compound annual growth rate of 66% since 2009, according to PureFunds data.