Why This Cyber Security ETF Is A Major Part Of Our 2015 Investing Strategy

Riggs first recommended this ETF trading strategy to his readers in February. Since then, HACK has climbed 14.9%. That’s more than three times the returns of the Dow Jones and S&P 500 in the same time.

“One of the things I really like about HACK is its industry-specific diversity,” Riggs said. “HACK is most heavily invested in the systems software industry, which will prove to be a great stabilizing force for the fund. That’s the sphere of the IT sector that’s been growing most reliably since 2010, with the consulting firm Gartner Inc. already forecasting enterprise software to grow by 7.3% in 2015.”

Major holdings include:

  • Cyberark Software Ltd. (Nasdaq: CYBR), an Israeli cybersecurity company that sells protective software to companies around the world, including 30 Fortune 100 companies. It’s up 94.1% in the last year.
  • FireEye Inc. (Nasdaq: FEYE), which provides malware protection and automated threat forensics in case of an attack. FEYE stock is up 32.4% in 2015.
  • Qualys Inc. (Nasdaq: QLYS), which offers cloud-based and web-application based security offerings to its nearly 7,000 customers. In the last year, QLYS stock is up 139%.

This tech ETF has more than $500 million in assets and has an expense ratio of 0.75%. An average of 359,000 HACK shares are exchanged on a daily basis.

HACK opened today at $29.46 and has a range of $24.44 to $29.61 since its November debut.

The Bottom Line: CBS‘s “60 Minutes” segment on the Sony hack reiterated why the PureFunds ISE Cyber Security ETF (NYSE Arca: HACK) is a major part of our 2015 investing strategy. Cyber spending will reach $155 billion by 2019, and HACK offers a broad play on the entire industry. It has already tripled the returns of the broader markets since February.

This article is brought to you courtesy of Kyle Anderson.

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