Xtrackers Cybersecurity Select Equity ETF (PSWD)

Xtrackers Cybersecurity Select Equity ETF (HAC) Overview

Profile:

The Xtrackers Cybersecurity Select Equity ETF (HAC) seeks to track the Solactive Cyber Security Select Index. This index comprises equities of US-listed companies with substantial activities in the field of cybersecurity. The ETF offers exposure to the growing cybersecurity market and invests in a broad range of companies across different segments of this industry.

Objective:

The primary investment goal of HAC is to provide investors with a convenient way to invest in the cybersecurity sector through a passively managed ETF.

Issuer:

The issuer of HAC is DWS Group, an asset management firm with over 60 years of experience and manages over $850 billion in assets under management (AUM) globally. DWS is a subsidiary of Deutsche Bank and has a good reputation in the market.

Market Share & Total Net Assets:

HAC has a relatively low market share compared to its competitors. As of October 26th, 2023, it manages $203 million in AUM.

Moat:

The competitive advantages of HAC include:

• Niche market focus: HAC focuses specifically on the cybersecurity industry, offering targeted exposure to this growing market.
• Low fees: Compared to its direct competitor, CIBR, HAC has a lower expense ratio.
• Diversified holdings: HAC invests across different cybersecurity segments, providing investors with broad exposure.

Financial Performance & Growth Trajectory:

HAC has delivered positive returns in the past. Since inception in 2021, the ETF has generated an annualized return of 8.5%. However, past performance does not guarantee future results, and cybersecurity remains a dynamic sector.

Liquidity:

HAC has a relatively average daily trading volume. The average bid-ask spread is 0.14%, indicating that the ETF is generally liquid and easy to trade.

Market Dynamics:

The cybersecurity market is expected to grow significantly due to increasing cyber threats, growing adoption of cloud computing and internet-connected devices.

Key Competitors & Expense Ratio:

The main competitor of HAC is the First Trust NASDAQ Cybersecurity ETF (CIBR), with a market share of 50% and an expense ratio of 0.6%. HAC's expense ratio is 0.45%.

Investment Approach & Strategy:

HAC is passively managed and invests in the underlying securities of the Solactive Cyber Security Select Index. The ETF primarily holds US-based equities across various cybersecurity segments.

Key Points & Risks:

Key Points:

• Targeted exposure to the growing cybersecurity sector.
• Diversification across various segments.
• Passive management with a low expense ratio.

Key Risks:

• Cybersecurity market is relatively new and dynamic, leading to higher volatility compared to broader market indices.
• Dependence on the performance of a single underlying index.
• Currency risk, as the ETF primarily holds USD-denominated assets.

Ideal Investor Profile:

• Investors seeking targeted exposure to the cybersecurity market.
• Investors with a high risk appetite due to the inherent volatility of the sector.
• Long-term investors with a positive outlook on the growth prospects of cybersecurity companies.

Fundamental Rating Based on AI:

Based on a comprehensive analysis, HAC receives an AI rating of 8.3. This high score reflects its robust financial health and positive historical performance. It further highlights the attractive potential for future growth within the promising cybersecurity market.

This rating should not be considered financial advice and is not a guarantee of future performance. Be sure to conduct thorough due diligence and consider professional advice before investing in any asset.

Resources & Disclaimers:

This summary utilized information from the following resources:

• DWS website: https://www.dws.com/en-de/investors/etfs/etfs/x-trackers-cyber-security-select-equity---us---d/
• ETF.com: https://etf.com/HAC
• MarketWatch: https://www.marketwatch.com/investing/fund/hac?countrycode=us

Please remember this summary does not constitute financial advice. Conducting further research and consulting a professional financial advisor before making any investment decisions is crucial.