In this series, we’ll cover the performance of cybersecurity stocks within the broad technology sector. We’ll track the performance as of September 8, 2015, of the PureFunds ISE Cyber Security ETF (HACK) as well as its components. HACK closed at $26.98 on September 11, 2015, finishing the week with a strong 2.82% return.
On September 8, 2015, the tech sector began to bounce back, with all component stocks rising. The Technology Select Sector SPDR ETF (XLK), the Vanguard Information Technology ETF (VGT), the First Trust Dow Jones Internet ETF (FDN), and the iShares North American Tech-Software ETF (IGV) rose 2.8%, 2.79%,1.88%, and 3.32%, respectively.
Weekly subsector performance
Internet software and service is the best performing subsector of the PureFunds ISE Cyber Security ETF (HACK), generating a return of 3.53% on September 8, 2015. Within the sector, AhnLab generated a return of 5.54% and Intralinks Holdings (IL) generated a return of 1.52%.
The next best performing sector is the communication equipment sector, generating a return of 2.54% on September 8, 2015. Cisco (CSCO) and Palo Alto Networks (PANW) are the most notable stocks in this sector, showing a return of 3.06% and 2.51%, respectively.
System software stocks, which constitute around 33% of total HACK holdings, generated a profit of 2.51% on September 8, 2015. Almost all the stocks are up within this sector. Within the sector, FireEye (FEYE) and CyberArk Software (CYBR) are the best performing stocks, generating a return of 5.46% and 3.81%, respectively.
Cisco’s (CSCO) Intelligent WAN (or IWAN) technology will be leveraged by Verizon to connect the power of the Internet with the performance and reliability of a private IP network. This will help enterprises maintain the continued growth of network traffic. The synergy between the two will help enterprises operate more efficiently and with greater speed.
Fortinet (FTNT) announced its new software-defined network securities (or SDNS) framework, designed to provide advanced threat protection. This framework will deliver a comprehensive approach to securing data centers by forming a partnership with HP (HPQ), IXIA (XXIA), PLUMgrid, and the Pluribus Network.