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Geopolitical risks and cybersecurity threats are rising, making the Amplify Cybersecurity ETF a compelling investment despite its high valuation. HACK tracks the Nasdaq ISE Cyber Security Select Index, with a portfolio of companies providing cybersecurity solutions, and has shown strong momentum and technical breakout. The ETF has $1.9 billion in assets, a 0.6% expense ratio, and a diversified portfolio, including tech, semiconductors, and defense companies.
All of Wall Street was waiting for Nvidia's earnings report with bated breath, and the dust has only just started to dissipate more than a week after the tech company reported earnings.
The HACK ETF invests in companies involved in cybersecurity. The fund includes several stocks that are not traditionally recognized as cybersecurity names which adds diversification but also limits its focus. Alternative ETFs may be a better option for investors seeking targeted exposure to this important and high-growth theme.
With so many innovations available in the market, it's increasingly difficult for investors to pick out viable ideas. That's where exchange-traded funds come into play.
Cybersecurity stocks have not performed well recently, but I see a GARP opportunity in the HACK's historical drawdowns. Cyber insurance spending is expected to continue rising at a high annual pace, reaching $23.6 billion by the end of next year, providing a bullish fundamental backdrop. HACK is a somewhat small ETF with concentrated holdings, and its technical chart is encouraging, with the current pullback offering a solid buying opportunity.
When it comes to cybersecurity, we are far from being ready. This makes these top cybersecurity stocks even more appealing to invest in.
HACK ETF: Military-Grade Cybersecurity Has Become Crucial
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Cybersecurity is becoming increasingly important as the digital economy expands, leading to a rise in investments in cybersecurity companies. The ETFMG Prime Cyber Security ETF is a popular choice for investors looking to gain exposure to the cybersecurity sector. The HACK ETF's top holdings include OKTA, Zscaler, Fortinet, Cloudflare, and CrowdStrike, providing diversification across the industry.
We first start off by juxtaposing HACK's qualities versus the other big option in this space - CIBR. Cybersecurity spending may be witnessing some sequential slowdowns but even in a difficult year, the expected topline of HACK's top holdings are resilient enough. We touch upon other reasons why the cybersecurity theme still has legs.
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