Cybersecurity Trends: Top 5 ETFs For Cyber Defense

In this article, we discuss 5 ETFs for cyber defense. If you want to read our discussion on the cybersecurity industry, head directly to Cybersecurity Trends: Top 10 ETFs For Cyber Defense. 

5. Amplify Cybersecurity ETF (NYSE:HACK)

5-Year Share Price Performance as of March 21: 57.56%

Amplify Cybersecurity ETF (NYSE:HACK) aims to mirror the total return performance of the Nasdaq ISE Cyber Security Select Index, tracking companies engaged in cybersecurity solutions, including hardware, software, and services. As of March 20, 2024, Amplify Cybersecurity ETF (NYSE:HACK) holds net assets worth $1.8 billion with an expense ratio of 0.60%. Established in November 2014, Amplify Cybersecurity ETF (NYSE:HACK)’s portfolio consists of 24 stocks. It is one of the best cybersecurity ETFs to buy. 

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the top holdings of Amplify Cybersecurity ETF (NYSE:HACK). The company designs, manufactures, and sells networking and IT products globally. On March 18, Cisco Systems, Inc. (NASDAQ:CSCO) announced that it has completed its acquisition of Splunk, days after the $28 billion deal got approved by the European Commission. 

According to Insider Monkey’s fourth quarter database, 60 hedge funds were bullish on Cisco Systems, Inc. (NASDAQ:CSCO), compared to 64 funds in the prior quarter. 

Oakmark Fund made the following comment about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2023 investor letter:

“Cisco Systems, Inc. (NASDAQ:CSCO) is the leading networking solutions company. Networking equipment becomes more important as businesses modernize their IT infrastructure, and Cisco is well positioned to capture this demand given its broad portfolio and highly effective go-to-market strategy. Cisco is transitioning away from selling mainly transactional hardware and toward selling more software and subscriptions. This shift is expected to accelerate revenue growth, improve operating margins and build recurring revenue. Despite these notable business improvements, Cisco still trades near a trough valuation relative to the S&P 500 Index. More recently, Cisco announced its intention to acquire Splunk, a leader in security and observability, adding to its already strong position in the increasingly important security market. At a low-teens multiple of our estimate of normalized earnings, Cisco is trading comfortably below our estimate of intrinsic value.”