Can Q1 earnings secure gains for cyber security ETF?

Cyber security has now become one of the emerging and growing industries of the broad technology sector. With extensive adoption of Internet usage in mobiles and computers, the need for securing information has increased. And thanks to ceaseless cyber-attacks, the industry is likely to thrive. This could easily be depicted by an astounding run-up in cyber security stocks so far this year.

In fact, the one-stop shopping place for this industry – PureFunds ISE Cyber Security ETF (HACK) – has been on the fire and is leading the broad tech space. The product has surged 11.8% so far this year versus the 4.5% gain for the broad technology fund (XLK). It has gathered enough interest from investors accumulating $658.6 million in AUM since its debut in November, and average daily volume is also solid, with around 394,000 shares exchanged in hand. Notably, the ETF is just up 0.41% compared to 1.7% gains for XLK over the past one month.

As earnings from the cyber security firms are encouraging so far, the ETF will likely regain its solid run in the coming months. Most of the firms have managed to either meet or beat our estimates, spreading an air of optimism into the space yet again. Given this, it might be worth shedding some light on this ETF and its holdings for investors seeking exposure in this space. Below we highlight some of the key details regarding HACK and how recent earnings could contribute to this fund’s solid run.

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