BetaShares Global Cybersecurity ETF (HACK) $14.74

The HACK ETF provides investors with exposure to a diversified portfolio of globally traded companies whose business involves cybersecurity. It contains both CRWD and PANW, but not as prominently as we would like.

• The ETF holds 39 stocks, with its 5 largest positions currently Broadcom, CrowdStrike, Cisco, Infosys, and Pal Alto.
• It has a decent $1.4bn market cap, while its fees are reasonable at 0.67%.

The biggest issue we have with this ETF is its underlying exposure to cybersecurity within the companies it holds: Cisco, its 3^rd largest holding, only generates 10-15% of its revenue from cybersecurity, while for Broadcom, its largest holding, it’s even less at 5-10%. Hence, we feel this ETF is lacking; investors can see cybersecurity becoming an increasingly important area of business, but the ETF won’t necessarily deliver.

• We prefer individual names such as CrowdStrike (CRWD US), Palo Alto Networks (PANW US), and Fortinet (FTNT US), not looked at today, for pure exposure to cybersecurity.