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The PureFunds ISE Cyber Security ETF began trading Wednesday on the New York Stock Exchange under the apt ticker "HACK."
HACK tracks the ISE Cyber Security Index, a benchmark compiled of 30 companies focused on protection from cybercrimes.
Key names in the index include giants like Cisco Systems Inc. (Nasdaq: CSCO), Juniper Networks Inc. (NYSE: JNPR), Palo Alto Networks Inc. (NYSE: PANW), FireEye Inc. (Nasdaq: FEYE), and Symantec Corp. (Nasdaq: SYMC).
HACK's top 10 holdings are (in order) VASCO, Imperva, Qualys Inc. (Nasdaq: QLYS), Palo Alto, Splunk, Infoblox, Radware Ltd. (Nasdaq: RDWR), Symantec, Proofpoint Inc. (Nasdaq: PFPT), and Science Applications International Inc. (NYSE: SAIC). The fund's annual expense ratio is 0.75%.
Christian Magoon, founder of YieldShares and a consultant to ISE ETF Ventures, said the ETF gives investors a way to play the growing space.
"What our analysts were able to do is actually look at companies and their underlying businesses and determine what kind of material efforts they have that are geared towards cybersecurity software, hardware, and services and then use that data intelligence to create the index of the 30 companies," Magoon told CNBC.
Magoon expects the cybersecurity ETF will attract long-term investors, as well as short-term speculators looking to play event-driven news in the space.
"It's [cybersecurity] an essential spend now in every IT budget, whether for the government, a corporation," or the everyday investor, Magoon told Reuters. He added that HACK is the only product "tailored to give investors exposure in this thriving industry."
Companies across all industries are substantially boosting cybersecurity budgets. Recent cyberattack victims vowing to do and shell out more to protect data include The Home Depot Inc. (NYSE: HD), JP Morgan Chase & Co. (NYSE: JPM), P.F. Chang's China Bistro (Nasdaq: PFCB), and, most recently, the U.S. Postal Service.