On Monday I wrote about 4 listed cyber security stocks but by accident I left out the 5th one — so here it is now.
BetaShares Global Cybersecurity ETF (HACK, $7.04)
Market cap: $142 million
One cyber-security stock on the ASX that is very definitely delivering the goods is the BetaShares Global Cybersecurity ETF, the code of which is HACK.
Launched in September 2016, HACK is an exchange-traded fund that offers, in a single listed stock, exposure to the major global companies involved in cyber-security. HACK is designed to track the performance of the Nasdaq Consumer Technology Association Cybersecurity Index, which covers the performance of the leading firms in the global cybersecurity industry. This includes global giants such as Symantec, CheckPoint, PaloAlto Networks and Cisco, as well as emerging leaders such as VMWare, FireEye, Fortinet, Akamai Technologies and Juniper Networks.
While more than 80% of the index is made up of US companies, HACK also picks up emerging players from other tech hotspots such as the Netherlands, Israel and Japan. Like any ETF, HACK invests in the poor performers in the index as well as the stars, but it offers a simple way to establish a diversified exposure to this major – and growing – investment theme.
Managed for 0.67% a year, HACK is unhedged, meaning that investors take A$/US$ currency risk – which in the right circumstances can actually add to the return. HACK has moved from $5 to $7.04 in its three years on the stock market. In FY19, it paid a 69.4 cent distribution.
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