Could HACK be the best ASX ETF for FY2021?

The BetaShares Global Cybersecurity ETF (ASX: HACK) has been a strong performer since inception in 2016 thanks to its focus on a high growth industry. Could HACK be the best performer in FY2021?

About HACK

The HACK ETF aims to provide exposure to leading companies in the global cybersecurity sector. HACK has 49 holdings in total which span multiple industries and countries. Around half of the ETF is allocated to systems software companies, but the ETF also invests in communications equipment, internet services and infrastructure, IT consulting, and other IT sub-sectors.

While HACK is a global ETF, more than 87% of the portfolio holdings are US-based, with small allocations to Britain, Israel, Japan, France, and South Korea. HACK has funds under management of over $210 million and now has a track record of nearly four years, so the ETF appears to have reached scale and continues to grow.

Why invest in cybersecurity?

Cybersecurity is an area of massive growth and is driven by increased demand from businesses which are relying more heavily on things like cloud computing and protection of data.

According to the Australian Cyber Security Growth Network, the global cybersecurity market is currently worth $173 billion and is projected to grow to $270 billion by 2026. The Australian Bureau of Statistics also released promising data last year which showed that between FY16 and FY18 the percentage of Australian businesses using paid cloud computing services rose from 31% to 42%, and more than half of all businesses with over 200 employees upgraded their cybersecurity software in FY18.

HACK performance

Since inception in 2016, the performance of the HACK ETF has reflected this industry growth. HACK has returned 19.54% per year over the last three years and 27.8% over the last 12 months, recovering quickly from a sharp decline through February and March. Of course, this does not guarantee future returns.

The risks

There are some important considerations to make before investing in HACK. The first is that the management fee is 0.67% per year, which seems small given historical returns, but it is above the market average for ASX ETFs.

HACK has also been quite volatile over the last three years and has experienced a number of sharp declines, the largest of which was earlier this year. This is an ETF that may require a strong conviction to hold over the long term.

For more information on the HACK ETF, you can read our full report here.

Disclaimer: At the time of writing, Max does not have a financial interest in the BetaShares Global Cybersecurity ETF (ASX: HACK).

 

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian-owned.

feedback-icon

What can we do better?

Howdy, ASX investor.

I really care about your experience today.

Please, let me know if you have any suggestions we can use to improve our site and help others invest in ETFs. 

Cheers! 

Owen Rask