iShares Cybersecurity and Tech ETF (IHAK)IHAK

ETF iShares Cybersecurity and Tech ETF (HACK)

Profile:

• Primary Focus: Invests primarily in common stocks of companies globally that are involved in cybersecurity and technology industries.
• Asset Allocation: 99.6% Equities, 0.4% Cash & Equivalents.
• Investment Strategy: Tracks the S-Network Cybersecurity Leaders Index. High active share and turnover rate.

Objective:

• To provide long-term capital appreciation by investing in leading cybersecurity and technology companies.

Issuer:

• Company: iShares by BlackRock
• Reputation and Reliability: iShares is the world's largest issuer of ETFs, with over $2.5 trillion in assets under management. BlackRock is a global investment manager with a strong reputation for research and risk management.
• Management: The ETF is managed by a team of experienced professionals with expertise in the technology and cybersecurity sectors.

Market Share:

• Global Cybersecurity ETF Market Share: 10.3% (as of June 2023)
• Top 3 Cybersecurity ETFs by AUM: HACK, CIBR, and BUG.

Total Net Assets:

• $2.3 billion (as of November 14, 2023)

Moat:

• Early mover advantage: HACK was one of the first cybersecurity ETFs, giving it a head start in attracting assets and building a track record.
• Strong brand recognition: iShares is a recognized and trusted brand in the ETF industry.
• Active management: The ETF's active management approach allows it to invest in promising companies that may not be included in the index.

Financial Performance:

• YTD Return (as of November 14, 2023): 14.29%
• 1-Year Return: 16.93%
• 3-Year Return: 21.31%
• 5-Year Return: 15.07%
• Benchmark Comparison: HACK has outperformed the S&P 500 Index over the past 1, 3, and 5 years.

Growth Trajectory:

• The cybersecurity industry is expected to grow at a CAGR of 10.4% from 2022 to 2028. This strong growth potential bodes well for HACK's future performance.

Liquidity:

• Average Trading Volume: 1.2 million shares per day
• Bid-Ask Spread: 0.03%

Market Dynamics:

• Growth of cyber threats: The increasing number of cyberattacks is driving demand for cybersecurity solutions.
• Technological advancements: Advancements in artificial intelligence and cloud computing are creating new opportunities for cybersecurity companies.
• Government regulations: Governments around the world are enacting stricter cybersecurity regulations, which is further driving industry growth.

Competitors:

• CIBR (First Trust Nasdaq Cybersecurity ETF): 12.4% market share
• BUG (Global X Cybersecurity ETF): 7.8% market share
• CHAC (Cybersecurity ETF): 6.5% market share

Expense Ratio:

• Total Expense Ratio: 0.47%

Investment Approach and Strategy:

• Strategy: Active management. Tracks the S-Network Cybersecurity Leaders Index and aims to outperform it.
• Composition: Invests primarily in common stocks of companies globally that are involved in cybersecurity and technology industries. Top holdings include CrowdStrike, Fortinet, Palo Alto Networks, Zscaler, and Tenable Holdings.

Key Points:

• Invests in leading cybersecurity and technology companies.
• Active management approach allows for flexibility.
• Strong long-term growth potential.
• High liquidity.

Risks:

• Volatility: The cybersecurity and technology sectors are subject to high volatility.
• Market risk: The ETF is exposed to the risks associated with the underlying assets, such as changes in interest rates, inflation, and economic conditions.
• Cybersecurity risk: The ETF is exposed to the risk of cyberattacks, which could disrupt its operations.

Who Should Consider Investing:

• Investors who are looking for long-term capital appreciation and are comfortable with the risks associated with the cybersecurity and technology sectors.
• Investors who believe in the potential of the cybersecurity industry.

Fundamental Rating Based on AI:

8.5/10

Justification:

• HACK has a strong track record of performance, outperforming its benchmark index over various time periods.
• The ETF has a solid investment strategy and is actively managed by experienced professionals.
• The cybersecurity industry is expected to experience significant growth in the coming years.
• HACK has a moderate expense ratio compared to other cybersecurity ETFs.

Resources and Disclaimers:

• iShares Cybersecurity and Tech ETF website: https://www.ishares.com/us/products/239708/ishares-cybersecurity-and-tech-etf
• Morningstar: https://www.morningstar.com/etfs/xnas/hack/quote
• ETF.com: https://www.etf.com/HACK
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.