Themes Cybersecurity ETF (SPAM)

ETF Themes Cybersecurity ETF Summary

Profile:

ETF Themes Cybersecurity ETF (HACK) is an actively managed ETF that invests in thematic growth trends in the cybersecurity sector. It offers diversified exposure to publicly traded companies across various areas within cybersecurity, including cybersecurity software, hardware, and services, and digital assets and blockchain cybersecurity.

Objective:

HACK's primary investment goal is to achieve long-term capital appreciation by investing in a portfolio of companies positioned to benefit from growing cybersecurity trends.

Issuer:

HACK is issued by ETF Managers Group (ETFMG), a global issuer of thematic and actively managed exchange-traded funds. ETFMG has a strong reputation and track record in the ETF market, and its management team has extensive experience in the technology and financial sectors.

Market Share & Total Net Assets:

HACK holds a significant market share in the cybersecurity ETF space, currently managing over $300 million in total net assets.

Moat:

HACK's competitive advantages include:

• Unique and actively managed strategy: Focusing on thematic growth trends within cybersecurity provides active exposure beyond broad market indices.
• Experienced and dedicated management team: ETFMG's team offers deep expertise in the technology and cybersecurity sectors.
• Niche market focus: Targeting the rapidly growing cybersecurity market provides potential for significant growth.

Financial Performance:

HACK has delivered strong performance since its inception, outperforming the broad market and its benchmark index. However, performance can fluctuate due to market factors and should be evaluated over longer timeframes.

Growth Trajectory:

The cybersecurity market is expected to experience significant growth in the coming years, driven by increasing data breaches and the rising awareness of cyber threats. This bodes well for HACK's growth trajectory.

Liquidity:

HACK offers good liquidity, with an average daily trading volume exceeding 100,000 shares. Bid-ask spreads are also relatively tight, indicating efficient trading.

Market Dynamics:

The cybersecurity market is influenced by various factors, including:

• Economic indicators: Rising economic activity can increase demand for cybersecurity solutions.
• Sector growth prospects: The continuous evolution of threats and vulnerabilities fuels the demand for security solutions.
• Regulatory environment: Policy changes and evolving regulations impacting data security influence the industry landscape.

Competitors:

Key competitors include CHY, BUG, and CIBR. HACK typically holds a larger market share than its competitors.

Expense Ratio:

HACK's expense ratio is around 0.75%, which is competitive compared to other actively managed thematic ETFs.

Investment Approach & Strategy:

HACK actively manages its portfolio, selecting companies positioned to benefit from cybersecurity trends. The fund invests primarily in common stocks of US and non-US companies.

Key Points:

• Diversified exposure to cybersecurity companies
• Actively managed by experienced professionals
• High growth potential
• Good liquidity and tight bid-ask spreads

Risks:

• The cybersecurity sector is relatively young and rapidly evolving, and its performance may be volatile.
• The ETF's concentrated holdings in one sector increase its risk relative to broader market investments.
• Geopolitical events and changing regulatory landscapes can significantly impact the sector's performance.

Who Should Consider Investing:

HACK is suitable for investors seeking long-term capital appreciation and exposure to the growing cybersecurity market. Investors should be comfortable with the associated volatility and have a medium to long-term investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, an AI-based rating system assigns a fundamental rating of 8.5 out of 10 to HACK. This rating reflects the fund's promising growth prospects, strong management team, and advantageous industry position. However, it is crucial to conduct further due diligence and assess individual investment objectives before making any investment decisions.

Resources & Disclaimers:

This summary is based on data gathered from ETFMG's website, ETF.com, and other publicly available sources. This information should not be considered investment advice. Any investment decisions should only be made after conducting thorough individual research and consulting with a qualified financial advisor.