Daily ETF Watch: HACK Cracks $1 Billion

June 19, 2015

When the PureFunds ISE Cyber Security ETF (HACK | C-24) rolled out in November last year, many wondered whether the fund was just a really cool ticker with little substance. Now, less than a year later, after crossing the $1 billion mark yesterday, it’s clear that HACK is a fund with staying power.

 

Since its launch, the ETF has been boosted by hacker attacks on Sony and, more recently, the U.S. government, among others, which underscored the growing importance of cybersecurity in a largely digital world.

 

The fund is up roughly 25 percent year-to-date versus an increase of about 3 percent for the SPDR S&P 500 ETF (SPY | A-98).

 

And of course, its resounding success is attracting competition. First Trust has filed for its own cybersecurity ETF. The First Trust CEA Cyber Security ETF will track a Nasdaq index and have a very similar objective and coverage to HACK. But it will use a different weighting methodology.

 

Also, PureFunds has filed for two more funds in registration that will also seek to capitalize on technology—the PureFunds ISE Information Technology ETF and the PureFunds ISE Consumer Technology ETF.

 

With less than nine months of trading behind it and despite its narrow niche, it’s clear that HACK resonates with investors. 

 

2 Funds Shutting Down
Two leveraged ETFs are currently in the process of liquidating. The ProShares Ultra Australian Dollar ETF (GDAY) had its last day of trading yesterday, June 18, and the Direxion Daily Gold Bull 3x Shares (BAR) will cease to trade after today. Both funds had gathered minimal assets.

 

BAR is set to be liquidated on June 26, while GDAY’s liquidation is scheduled for “on or about” June 29.

 

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