ASX exchange-traded funds (ETFs) offer investors a range of opportunities to gain diversified exposure to sector-specific stocks.
While there are a few stocks on the ASX focused on thwarting hackers, theyâre currently all small-cap companies.
But there is an ASX ETF that you can buy and sell just like any other share that offers exposure to 36 large-cap global cybersecurity stocks, the majority of which are domiciled in the United States.
Which ASX ETF opens the door to investing in cybersecurity companies?
The ETF in question is the Betashares Global Cybersecurity ETF (ASX: HACK).
HACKâs top holdings are Fortinet Inc, Broadcom Inc, Palo Alto Networks Inc, Cisco Systems Inc and Infosys Ltd.
Atop the potential for share price gains, which weâll look at below, this ASX ETF also provides a passive income stream via regular distribution payments.
As at 28 February, HACK shares traded at a 12-month trailing yield of 8.1%, unfranked.
The company charges management fees of 0.67%.
HACK share price snapshot
As you can see on the chart below, the HACK share price is down 15% over the past 12 months.
But the new year is shaping up better.
So far in 2023, this ASX ETF has gained 7%.
And keep in mind, these figures donât include the distribution payouts.
The ASX cybersecurity ETF has likely been the beneficiary of a spate of recent, highly publicised hacks.
Here in Australia, Iâm sure youâll recall the massive data breaches at Optus and Medibank, and I hope you werenât personally impacted.
And cyber breaches are accelerating across the world.
That reality has seen 80% of larger Australian companies report their intentions to ramp up cybersecurity spending in 2023, according to research by Netskope.
With global corporations also increasing their cyber defence capabilities, this ASX ETF is well positioned to help the âgood guysâ and potentially deliver some handy gains to shareholders on the way.
The post Want to invest in cybersecurity but don’t know how? Try this ASX ETF appeared first on The Motley Fool Australia.
Should you invest $1,000 in Betashares Global Cybersecurity Etf right now?
Before you consider Betashares Global Cybersecurity Etf, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Betashares Global Cybersecurity Etf wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of March 1 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- 3 excellent ETFs for ASX investors to buy for the long term
- 2 top ETFs for ASX growth investors to buy next week
- 3 ETFs for smart ASX investors in March
- Why Iâm not investing in ASX index ETFs (yet)
- 2 ASX ETFs I’d buy as a beginner investor
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Cisco Systems, Fortinet, and Palo Alto Networks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/89ncJEB
Stock Pick 