ETF Talk: 'HACKing' Better Profits With A Cybersecurity ETF


Staff member
May 18, 2022
ETF Talk: 'HACKing' Better Profits With A Cybersecurity ETF

Jim Woods discusses the potential of the Amplify Cybersecurity ETF (NYSEARCA: HACK), which targets the rapidly growing cybersecurity market. This market is projected to grow to $506.79 billion by 2032 from $236.75 billion in 2023.

Key Points

Rising Importance of Cybersecurity: With increasing cyber threats, both governments and companies are heavily investing in cybersecurity. The U.S. Department of Defense has increased its cybersecurity budget by over 15% for 2024.

HACK ETF Focus: The Amplify Cybersecurity ETF aims to mirror the Nasdaq ISE Cybersecurity Select Index. It includes stocks from companies worldwide that focus on cybersecurity across software, hardware, and services. The ETF selects companies that generate at least 90% of their revenue from cybersecurity.

Major Holdings
Some of the significant holdings in the HACK ETF include:
- Broadcom Inc. (NASDAQ: AVGO)
- Cisco Systems (NASDAQ: CSCO)
- Palo Alto Networks (NASDAQ: PANW)
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- General Dynamics Corp. (NYSE: GD)
- Northrop Grumman Corp. (NYSE: NOC)
- Fortinet Inc. (NASDAQ: FTNT)
- Cloudflare Inc. (NYSE: NET)
- Zscaler Inc. (NASDAQ: ZS)

Recent Performance: HACK has shown a positive performance with an 8.97% increase over the past month and a 7.86% rise year-to-date as of July 3, 2024.

Assets and Expenses: The fund manages $1.7 billion in assets with an expense ratio of 0.60%.

Investment Consideration
Risk and Return: Potential investors should weigh the risks and returns. While the ETF offers exposure to a growing sector, market fluctuations and cybersecurity threats can impact its performance.

Additional Information
Jim Woods invites readers to email him with questions about ETFs, with selected queries potentially addressed in future ETF Talks.

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About the Author
Jim Woods has over 20 years of experience in the markets as a stockbroker, financial journalist, and money manager. He is the editor of several investment newsletters, including Successful Investing and High Velocity Options.

For More Information
Contact Information: Readers can reach out to Jim Woods through the Stock Investor website.
Additional Resources: The Stock Investor site offers a variety of investment newsletters and articles from experts like Mark Skousen, Bryan Perry, Bob Carlson, Jon Johnson, George Gilder, and DayTradeSPY.

Closing Note
Investors looking to capitalize on the growing cybersecurity market might find the HACK ETF a compelling choice. However, they should conduct thorough research and consider their investment goals and risk tolerance before making any decisions.

Stock Investor Website