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Danny

Which are the best cybersecurity ETF to invest in?

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Hello Danny,

Cybercrime in ETF has recently come into the limelight. Therefore only a few cybersecurity ETFs are up for the grabs.
The best performing ETF typically incur fewer costs. Low expenses result in good performance of the ETF in a long duration. Cybersecurity ETF also behave in the same manner.
Exchange-traded funds with high assets say $500 million also have high liquidity. This case also applies to cyber ETF.
ETFMG Prime Cyber Security ETF, popularly known as HACK, is one of the best cybersecurity ETF. It Is the first cybersecurity ETF to created, and it is also the largest in the market.
HACK serves the purpose of pf protecting data of the companies that develop hardware and software. It also protects those who provide the cybersecurity service.
First Trust NASDAQ Cybersecurity ETF (CIBR) is another major cybersecurity ETF. It focuses on firms that manage and assemble security arrangements of both private and public networks. CIBR has many assets under it that it runs.
Cybersecurity ETF can rapidly grow in the long-run; however, you should note that there may be some short-run risks that come with them.
As a careful investor, you should determine your goals and how well you can tolerate the risks in such an ETF before you start to invest.

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Hi Danny,

One strategy to tap into the rapidly growing online security market is investing in cybersecurity ETFs. Star ETF performers within the cybersecurity industry include:
(HURNTR) L&G Cyber Security UCITS ETF
This online security ETF concentrates on tracking the ISE Cyber Security UCITS index. It is an index of publicly quoted firms trading on assorted stock exchanges worldwide. These are firms making their highest revenues from products and services in the online security industry.
(HACK) ETFMG Prime Cyber Security ETF
HACK happens to be the biggest online security ETF. It has a portfolio of 52 stocks, directly or indirectly, attuned to the cybersecurity sector. Among its biggest holdings are FireEye Inc, Cisco Systems, and Tenable Inc.
(CIBR) First Trust NASDAQ Cybersecurity ETF
The CTA Cybersecurity Index is the foundation upon which this ETF rests. In its portfolio are 38 stocks of public firms who build, implement, and manage online security. 
These firms concentrate on firms servicing security for public and private networks, mobile devises, and computers.
 

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Welcome Danny, and thanks for asking.

What better way to maximize data breaches than buying cybersecurity ETFs? Backed by leading internet corporations, these funds present different cybersecurity stocks worldwide. That’s why you need the best in your portfolio.
Topping the list is HACK that boasts of major holdings like Cisco, FireEye, and Akamai. This fund not only tracks companies developing software and hardware but also those offering cybersecurity services. It’s characterized by tight spreads as well as high liquidity and trading volumes. The presence of micro caps, however, affects block liquidity.
Another option is CIBR. This ETF monitors corporations dealing with the creation, application, and management of internet safety on networks and devices. Dominant holdings include Splunk, Raytheon, and Okta. Not forgetting HURNTR that reviews the UCITS index. This index incorporates public companies that get a significant part of their earnings from online security. To be included in the index, a firm must be large in terms of shares and market value. Its liquidity should also be sufficient.
 

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Hi Danny,

The First Trust NASDAQ Cybersecurity ETF started operating in July 2015 to follow the NASDAQ CTA Cyber Security Index, which tracks the companies that develop and manage security protocols of private and public networks as well as technology devices. This ETF holds $1.27 billion in assets as of April 10, 2020.

Another notable Cyber ETF to invest in is the ETFMG Prime Cyber Security ETF (known as PureFunds ISE Cyber Security ETF). It was rolled out in 2014 to monitor the ISE Cyber Security Index, which tracks companies that build hardware and software to keep data safe and companies that provide cybersecurity services.

The first ETF owns larger, less risky companies, therefore it may be less volatile and prove to be a safer option for long-term investments.
 

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