The performance of this passively invested ETF demonstrates that while the cybersecurity market is growing rapidly, with rapidly evolving threats and solutions, not all cybersecurity stocks are equal. In this sector individual stocks will demonstrate extreme growth while others will languish in low of negative growth. This is a sector for expert investors.
One year after a set of high-profile cyber attacks and a hot market for trendy exchange traded funds propelled the PureFunds ISE Cyber Security ETF to one of the most successful ETF launches in history, it is facing a major test of its investment strategy. In the first nine months after its November 2014 launch, HACK raised $1.4-billion in assets, making it the third fastest growing new ETF in 2014 and the fastest from a small company, according to Lipper. But even though spending on cyber security has not abated, and even though some standout stocks in that sector have soared in 2015, HACK itself is down 1.0 per cent this year through Monday.