The Betashares Global Cybersecurity ETF (ASX: HACK) is trading at $15.06 per unit, down 2.08% on Friday.
This exchange-traded fund (ETF) seeks to capitalise on the growing global demand for cybersecurity services.
Did you have your identification details stolen in the Optus data breach of September 2022?
Or the Medibank Private Ltd (ASX: MPL) ransomware attack the following month?
Cyber attacks are on the rise, and businesses are increasingly seeking the help and advice of cybersecurity experts to prevent these highly damaging events from occurring.
ASX HACK is an index-tracking ETF. It seeks to track the returns of the Nasdaq Consumer Technology Association Cybersecurity Index.
HACK has exposure to many different sectors within the cybersecurity space.
For example, 46% of funds under management are allocated to systems software companies. About 11.3% is in communications equipment, 10.9% is in internet services and infrastructure, 9.6% is in research and consulting services, and 7.6% is in semiconductors.
More than three-quarters of the stocks that HACK tracks are companies in the US.
About 7% are in India, 5.5% are in France, and 4.2% are in Israel.
The ASX ETF usually pays distributions, or dividends, twice per year in January and July.
The management fee is 0.67% per annum.
So, if you invested $10,000 in the HACK ETF a year ago, how did that turn out for you?
Let's find out.
On 30 May last year, the HACK ETF closed at $11.32 apiece.
If you had put $10,000 into HACK then, it would have bought you 883 units (for $9,995.56).
There's been a capital gain of $3.74 per unit since then. That translates to $3,302.42 of capital growth for you.
That's pretty phenomenal in just one year for a $10,000 investment.
Thus, your portfolio is now worth $13,297.98.
In terms of dividends (called 'distributions' with ETFs), HACK has paid just one since 30 May 2024.
The HACK ETF paid investors 7.8635 cents per unit on 16 July last year. The ETF did not pay a dividend in January this year.
So, since investing in HACK, you've received $69.43 in annual income.
Your capital gain of $3,302.42 plus $69.43 in dividends gives you a total dollar return of $3,371.85 over the past 12 months.
On a $9,995.56 investment, that's a total return, in percentage terms, of 33.73%.
That's well above the ETF's long-term average.
Since its inception on 30 August 2016, the HACK ETF has delivered an average annual return of 18.08%.
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