ETFMG Prime Cyber Security ETF (HACK) is an exchange-traded fund that seeks to track the performance of an index composed of global companies engaged in cybersecurity solutions and digital protection technologies. The ETF is managed by ETFMG and trades under the ticker HACK on NYSE Arca.
Classified as a thematic equity ETF, HACK aims to reflect, before fees and expenses, the aggregated performance of the securities included in its benchmark index, providing exposure to companies focused on digital security and cyber defense infrastructure.
The fund employs a passive management strategy designed to replicate the composition and weighting of the Prime Cyber Defense Index, that includes companies involved in data protection technologies, threat detection and prevention, network security solutions, encryption, authentication, and critical infrastructure protection.
Constituents are primarily weighted by float-adjusted market capitalization and are subject to periodic rebalancing to maintain compliance with eligibility and liquidity criteria.
Diversification and sector exposure
HACK provides exposure to the global cybersecurity and digital protection technology sector, with companies operating in segments such as:
Security software development.
Network protection and security services.
Digital encryption and identity authentication.
Threat monitoring and incident response.
Cybersecurity infrastructure equipment.
Structure and costs
Shares of HACK are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund carries an expense ratio typical of thematic technology ETFs and does not charge a performance fee. HACK may distribute income derived from dividends paid by its underlying holdings when applicable. However, the ETF is primarily used for thematic exposure and long-term capital appreciation strategies.
History and evolution of the ETF
The ETFMG Prime Cyber Security ETF was launched in 2014, amid increasing global demand for digital protection tools as businesses and governments sought to strengthen defenses against expanding cyber threats.
Since inception, HACK has been used by institutional and individual investors seeking exposure to the cybersecurity theme, a segment where global digitization and rising cyberattacks have elevated the strategic importance of specialized security firms.
Between 2020 and 2024, the ETF reflected accelerated adoption of digital security technologies in response to the transformation driven by the pandemic, innovation cycles in tech, and the growing complexity of data protection challenges, while maintaining liquidity and broad use as a thematic diversification tool in technology.