What the heck is so good about Cybersecurity ASX ETF, HACK?

a man in a hoodie grins slyly as he sits with his hands poised on a keyboard. He is superimposed with a graphic image of a computer screen asking for a password, suggesting he is a hacker.

Image source: Getty Images

The Betashares Global Cybersecurity ETF (ASX: HACK) is one of the well-liked exchange-traded funds (ETFs) on the ASX.

According to BetaShares, this ETF is around $770 million in size.

Part of its popularity has come from the returns the ETF has produced. Since its inception in August 2016, the HACK ETF has produced an average return per annum of 20.6%. Though, past performance is not a reliable indicator of future performance.

Expert rates the HACK ETF as a buy

Talking on a ‘buy hold sell’ Livewire video, Felicity Thomas from Shaw and Partners was asked to name an ETF that every investor should have in their portfolio. Her pick was Betashares Global Cybersecurity ETF. Here is the reasoning:

The reason I’ve chosen this is because cybercrime is meant to cost the world $10.5 trillion by 2025, which is huge. It also has amazing names in it like CrowdStrike. In a connected world where everyone is attached to their devices, it’s becoming the biggest problem that we’re all facing.

Betashares Global Cybersecurity ETF holdings

Thomas noted that there are some “amazing” names in the portfolio.

The fund holds around 40 positions in all. Crowdstrike is the heaviest of the portfolio with a 6.7% weighting.

But there are plenty of other businesses involved in the cybersecurity world including: Palo Alto Networks, Zscaler, Cisco Systems, Cloudflare, Splunk, Akamai Technologies, Booz Allen Hamilton, Mandiant, Leidos, Juniper Networks, Check Point Software, F5 Networks, Verisign, Cyberark Software, Fortinet, and more.

What is helping the earnings of the cybersecurity sector?

BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

According to Statista, global cybersecurity revenue is projected to increase from US$137.63 billion in 2017 to US$248.26 billion in 2023.

Australian cybercrime presents just a microcosm of this growing problem. COVID-19 has led to more Australians relying on the internet to work remotely, to access services and information, and to communicate. The Australian Cyber Security Centre (ACSC) says this environment has generated more opportunities…