The fast-growing PureFunds ISE Cyber Security ETF (NYSEArca: HACK) will get its first competitor today with the expected debut of the First Trust NASDAQ CEA Cybersecurity ETF (NasdaqGM: CIBR).

CIBR will track the Nasdaq CEA Cybersecurity Index. It is easy to see why First Trust, or any ETF issuer for that matter, would like to try its hand at a cyber security fund. Amid a spate of public and private sector data breaches, the most recent afflicting personal data of federal employees, cyber security stocks are getting increased attention and, more importantly, are surging. [Another Cyber Security ETF is Coming]

“Cybersecurity is gaining global attention following recent high profile security breaches. With the heightened need for cybersecurity solutions, First Trust believes this could be a favorable time to invest in cybersecurity companies. The index is designed to track the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors. It includes companies primarily involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices in order to provide protection of the integrity of data and network operations,” according to a statement issued by Illinois-based First Trust.

CIBR debuts at a time of exponential growth for the entrenched HACK. On June 10, HACK had just over $928 million in assets under management, but by June 18, that number was $1 billion and has since swelled to over $1.2 billion. [HACK Hits $1B in Assets]

HACK’s index “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.

CIBR and HACK may not be alone in the cyber security ETF space for long as Direxion has plans to introduce leveraged bearish and bullish versions of HACK.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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