HACK aims to track the performance of an index that provides exposure to the leading companies in the global cybersecurity sector.

Approach

The index tracks the performance of the exchange-listed equity securities of companies across the globe that (i) engage in providing cyber defence applications or services as a vital component of its overall business or (ii) provide hardware or software for cyber defence activities as a vital component of its overall business. The fund invests at least 80% of its total assets in the component securities of the index and in ADRs and GDRs based on the component securities in the index.

Portfolio

An ETF Model Portfolio is a carefully selected portfolio of exchange traded funds (ETFs) and other exchange traded products constructed and managed by a professional investment manager.

The investment manager typically also provides regular reporting on the portfolio’s performance, along with ongoing communication on changes to the portfolios, the rationale for doing so, and broader commentary on the micro and macro environment.

BetaShares offers four series of model portfolios, each of which seeks to achieve capital growth and income streams through a careful blending of asset classes, including Australian and international equities, bonds, cash and commodities. The models are constructed using ETFs and other exchange-traded products, resulting in institutional-quality portfolios that are cost-effective, highly diversified, transparent, and simple to explain to clients.

Strategic asset allocation (SAA) ETF model portfolios: Built using forward-looking 10-year expected returns and risk for a diversified range of major asset classes.

Dynamic asset allocation (DAA) ETF model portfolios: Utilise return/risk parameters from SAA, rebalanced quarterly based upon BetaShares’ modelling of asset class misevaluations, risk objectives and economic considerations.

Dynamic Income model portfolios: Aim to produce total returns that are similar to the dynamic ETF models, but are weighted towards income rather than capital growth.

Pension Risk-Managed Model Portfolios: Uses ETPs that aim to provide enhanced income returns and/or less volatile returns through a systematic risk-management overlay.

People

dam O’Connor is a member of the BetaShares Distribution team responsible for supporting Institutional and Intermediary Broker and Adviser channels. Prior to joining BetaShares, Adam worked in stockbroking and advisory with Bell Potter Securities. Alex is responsible for leading the strategy and overall management of the business. Prior to co-founding BetaShares, Alex was closely involved in the establishment and development of several leading Australian financial services businesses including Pengana Capital and Centric Wealth. Alistair is a member of the BetaShares Distribution team, responsible for supporting Institutional and Intermediary Broker channels, as well as supporting the firm’s capital markets activities. Annabelle is a member of the BetaShares marketing team focusing on social media and content. Anthony is responsible for supporting the investment and operations functions at BetaShares. Anton is BetaShares’ internal legal adviser and is also responsible for managing the compliance function. Ben is responsible for supporting the distribution of BetaShares funds to advisers across the Victoria and South Australia regions. Benjamin is a member of the BetaShares Distribution team, responsible for assisting with client inquiries.

Brendan is responsible for growing and servicing BetaShares Adviser business clients across Western Australia. In this role, Brendan is focused on educating advisers about the role and benefits of ETF’s and SMA’s in client portfolios and sharing updates on the expanding range of strategies available across the BetaShares product suite. Cameron’s responsibilities span supporting all distribution channels and working alongside the portfolio management team. Prior to joining BetaShares, Cameron was a portfolio manager at Macquarie Asset Management, and was responsible for the structuring and management of Macquarie’s listed and unlisted structured product offering. Cameron’s other experience includes Head of Product at Bell Potter Capital, working on JP Morgan’s Equity Derivatives desk and at Deloitte Consulting.

Performance

The ETFMG Prime Cyber Security ETF was the first ETF to focus on the cyber security industry. It tracks an index of companies involved in hardware, software and services, classifying the underlying stocks as either infrastructure or service providers. Top holdings include Cisco Systems, Akamai and Qualys.

About Fund

FactSet ETF Analytics Scoring Methodology is one of the first wide-ranging and robust methodologies for evaluating, comparing and contrasting exchange-traded funds. The researchers and analysts at FactSet developed the system. The result of thousands of hours of research, debate and testing, FactSet ETF Analytics Scoring Methodology provides a comprehensive structure for investors to analyze ETFs. FactSet’s quantitative system allows an investor to evaluate a fund at a glance, aggregating a sweeping range of detailed, often-difficult-to-obtain data points. FactSet’s Letter Grade combines the Efficiency and Tradability score evaluating costs to the investor. The combined score is assigned a letter grade (A-F) providing an institutional-caliber view on how well run and how liquid the ETF is. Efficiency includes risks, which are potential costs. Funds that minimize these risks can be more efficient.

(Source: Betashare)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require. The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents. Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material. Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.