Want to invest in cybersecurity but don’t know how? Try this ASX ETF

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, they’re 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).

HACK’s 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 we’ll 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 don’t include the distribution payouts.

The ASX cybersecurity ETF has likely been the beneficiary of a spate of recent, highly publicised hacks.

Here in Australia, I’m sure you’ll recall the massive data breaches at Optus and Medibank, and I hope you weren’t 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 ‘good guys’ and potentially deliver some handy gains to shareholders on the way.