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Why Cybersecurity ETF HACK Hit Its Year-to-Date High


May. 23 2017, Updated 4:36 p.m. ET

HACK shares rose the most in 2017 to date

In the previous part of this series, we looked at the impact of the WannaCry ransomware attack on cybersecurity stocks. Now let’s look at the impact of that attack on the PureFunds ISE Cyber Security ETF (HACK).

HACK rose 3.3% on May 15, 2017. That was its biggest rise in the last six months. WannaCry ransomware was the reason behind the surge. In comparison, the Vanguard S&P 500 ETF (VOO) rose only 0.50% that day.

HACK invests in 40 cybersecurity companies, including FireEye (FEYE), Proofpoint (PFPT), Barracuda Networks (CUDA), Fortinet (FTNT), Symantec (SYMC), Cisco Systems (CSCO), and Palo Alto Networks (PANW).

FireEye, Qualys, Symantec, Check Point Software Technologies (CHKP), Juniper Networks (JNPR), Cisco Systems, and Palo Alto Networks are among the top 15 holdings in the HACK portfolio. As a result, any upward movement in these companies’ stocks raises HACK shares.

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Surge in cybersecurity stocks’ market capitalizations

The above five stocks that led HACK to its six-month high saw their market capitalizations rise close to $6.0 billion on May 15, 2016.

Let’s take a closer look now at how the WannaCry ransomware presents a significant opportunity for cybersecurity stocks.


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