25% per annum: Is the BetaShares Cybersecurity ETF (HACK) a buy today?

Despite never actually owning it (much to my detriment), the BetaShares Global Cybersecurity ETF (ASX: HACK) has long been one of my favourite exchange-traded funds (ETFs) on the ASX.

For one, it exclusively invests in the world’s most exciting cybersecurity companies. That’s an arena I’m sure we can all agree has a reasonably bright future in front of it.

For another, this ETF has one of the best ticker codes on our markets, hands down.

But let’s get to the really impressive stuff.

This ASX ETF has consistently generated some of the best returns among funds on the Australian market. To illustrate, let’s get into the latest figures. So as of 31 August, the Betashares Global Cybersecurity ETF had returned an astonishing 24.85% over the previous 12 months. That’s just one year, you might say. No investment, particularly one so grounded in the volatile tech space, should be judged from one year’s performance. Fair enough. So consider that over the past three years, HACK units have delivered a near-identical result, delivering an average of 24.28% per annum.

That stretches to a still-respectable 14.76% per annum over the past five years, and to 19.04% per annum over ten. That’s a truly astonishing track record. An annual return of 19.04% is enough to turn a $10,000 investment into over $66,000 in a decade. True wealth-building stuff.

So with that in mind, can we call this ASX ETF a best buy for the ASX today?

Is this high-flying BetaShares Global Cybersecurity ETF still a buy today?

Well, I would say that it is. This ASX ETF’s extraordinary performance indicates that its process is a successful one. As we’ve mentioned, cybersecurity is an industry that is not going anywhere. In fact, we can comfortably argue that its importance continues to grow every day. With more and more personal, business, and government interactions moving online, cybersecurity will only become an increasingly essential service. And given how damaging a hack or intrusion can be to an entity’s reputation, individuals, companies, and governments are likely to become even more willing to spend whatever it takes to protect their customers, clients, and reputations.

The shares that HACK holds in its portfolio are truly some of the best in the business. On the latest data, these include the likes of CrowdStrike Holdings, Fortinet, Palo Alto Networks, Broadcom, Okta, and Cloudflare. All top-tier companies that have shown that they have what it takes to capture and keep customers.

HACK will always be a volatile ETF – you shouldn’t be surprised to see its units take a big hit whenever there are wobbles in the market. But even so, its track record and exposure to one of the world’s hottest growth industries make it, at least in my view, a top buy for any long-term investor today.

The post 25% per annum: Is the BetaShares Cybersecurity ETF (HACK) a buy today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Broadcom, Cloudflare, CrowdStrike, Fortinet, and Okta. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended CrowdStrike and Okta. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.