Stockchase Opinions

Mike PhilbrickPureFunds ISE Cyber Security ETFHACKCOMMENTJun 04, 2018

There's massive focus on this now: collecting personal data and hacking into company databases, which happens more than we think. Cyber security companies have explosive potential growth. Caveat: this is a highly concentrated basket of stocks. Like Amazon, at some point these companies will suffer a sudden 90% drop.

$37.92

Stock price when the opinion was issued

$93.33

As of Jun 11, 2026. Market Open.

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PARTIAL BUY
CRWD vs. Cybersecurity ETF

You could own the HACK and/or BUG ETFs as well as CRWD so you get overall sector exposure as well as the leader in the group.

DON'T BUY
ETF for cybersecurity.

He used to use this. When you're learning about a space, you go to the ETF. Be aware of the valuation. He'd recommend that you can pick leaders within that, rather than buying them all through the ETF. Try FTNT, S, PANW or CYBR.

BUY

Gets you all the major cybersecurity companies.

COMMENT
These are good ETFs for the cybersecurity theme. Thinks that they will be more and more important in the future. Should have some cybersecurity in your portfolio for the next decade. Good for longterm, could hold for the next 10 years. Probably the most needed area of technology.
BUY ON WEAKNESS
A long term theme for him. Indifferent to the individual ETF. You should understand that cyber security is a critical growth area as the world digitizes. You should keep buying into the dips.
BUY
It is half software and half servicing and is a much larger ETF than many of its competitors'. There is a lot of small cap with risk. This is the one to be in if you want to be in the cyber security space.
HOLD
Best cyber security ETF? He prefers HACK as it gives diversification. It allows him to trade in and out at will, something not always available with individual stocks.
HOLD
Trade wars? He likes tech currently with cloud & cyber security. This space will continue to be important. He is watching for support at $36.75.
COMMENT
Interesting area in today's world. Likes that top 10 holdings are only 34%. But let's be clear, if tech or the market doesn't do well, this doesn't do well. Doesn't matter if earnings are growing, if you're facing headwinds from a macro perspective. Be very careful with this narrow theme. Plus, there's a privacy backlash in tech.
BUY

Buy individual cybersecurity stocks or buy this ETF? He now hold a full position in HACK. He also owns Palo Alto--and can't fathom why it isn't part of HACK, because it's the dominant player in cybersecurity.

HOLD
The best security ETF to diversify risk. He prefers a basket to reduce single company risk for this space.
BUY

Internet security are software companies and this group is in favour, because companies need security now. This ETF holds a basket of these companies and this should do well in the coming year. A little money may rotate out of tech into financials, but only briefly, he expects.

BUY

How effective are cyber ETFs? Tech is a great area to be in, despite the Facebook scandal. ETFs are a good way to play this sector. Just keep your weighting at 5%.

COMMENT

Cyber security ETF. It is a niche exposure. Whenever there is news of a data breach, this one receives inflows and volume. This is a good ETF giving you a targeted exposure with good liquidity. If you want niche plays in concentrated sectors that may be volatile, and if you feel there is another data breach coming, then this ETF will probably respond with positive price action to this kind of news. Probably not a long term kind of investment vehicle.