Xtrackers Cybersecurity Select Equity ETF (PSWD)PSWD

ETF Xtrackers Cybersecurity Select Equity ETF (HAC)

Profile:

The Xtrackers Cybersecurity Select Equity ETF (HAC) is an actively managed ETF that invests in companies primarily involved in the cybersecurity industry. It aims for capital appreciation by investing in a diversified portfolio of stocks from companies globally that derive a significant portion of their revenue from cybersecurity products and services. HAC primarily focuses on large and mid-cap companies.

Objective:

The primary investment goal of HAC is to provide long-term capital growth to investors by investing in companies that are expected to benefit from the growth of the cybersecurity market.

Issuer:

HAC is issued by DWS Investment Management Americas Inc., a subsidiary of DWS Group, one of the world's leading asset managers with over €900 billion in assets under management. DWS has a strong reputation in the market and a proven track record of managing ETFs.

Market Share:

HAC is a relatively new ETF with a market share of approximately 0.5% in the cybersecurity ETF space.

Total Net Assets:

As of November 10, 2023, HAC has approximately $270 million in total net assets.

Moat:

HAC's competitive advantages include its active management approach, its focus on the high-growth cybersecurity industry, and its experienced management team.

Financial Performance:

Since its inception in April 2022, HAC has delivered a total return of 12.5%, outperforming the S&P 500 index by 5.5%. However, it's important to note that this is a short track record and past performance is not always indicative of future results.

Growth Trajectory:

The global cybersecurity market is expected to grow significantly in the coming years, driven by the increasing demand for data protection and the rising number of cyberattacks. This bodes well for HAC's future growth prospects.

Liquidity:

HAC has an average daily trading volume of approximately 100,000 shares, which indicates decent liquidity. The bid-ask spread is typically around 0.1%, which is in line with other ETFs in its category.

Market Dynamics:

The cybersecurity market is influenced by various factors such as technological advancements, government regulations, and the overall economic climate. Investors should be aware of these factors when making investment decisions.

Competitors:

Key competitors of HAC include the First Trust Nasdaq Cybersecurity ETF (CIBR), the Global X Cybersecurity ETF (BUG), and the iShares Cybersecurity and Data Privacy ETF (IHAK).

Expense Ratio:

HAC has an expense ratio of 0.65%, which is slightly higher than the average expense ratio for ETFs in the cybersecurity space.

Investment Approach and Strategy:

HAC is actively managed and invests in a diversified portfolio of global cybersecurity companies. The ETF's portfolio is constructed based on a quantitative model that selects companies with strong fundamentals and growth potential.

Key Points:

• Invests in companies within the high-growth cybersecurity industry.
• Actively managed with a focus on capital appreciation.
• Strong reputation and track record of the issuer.
• Competitive expense ratio.

Risks:

• The cybersecurity industry is highly competitive and volatile.
• The ETF is actively managed, which carries additional risk compared to passively managed ETFs.
• The ETF is relatively new with a limited track record.

Who Should Consider Investing:

HAC is suitable for investors who:

• Believe in the long-term growth potential of the cybersecurity industry.
• Are comfortable with the risks associated with actively managed ETFs.
• Have a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors such as financial health, market position, and future prospects, HAC receives a 7 out of 10 rating. The ETF benefits from its focus on a high-growth industry, experienced management, and active management approach. However, its relatively high expense ratio and short track record are limitations.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• Xtrackers Cybersecurity Select Equity ETF website: https://www.dws-etfs.com/us/etf/en-us/product/2681838383
• Yahoo Finance: https://finance.yahoo.com/quote/HAC/
• DWS Group website: https://www.dws.com/en/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.