Amplify Cybersecurity ETF

HACK

Market cap $2.22B

The First Trust Nasdaq Cybersecurity ETF is rated a buy due to superior performance, lower risk, and higher liquidity versus the Amplify Cybersecurity ETF. CIBR offers greater international exposure, stronger concentration in high-margin software, and better risk-adjusted returns, making it more attractive for long-term investors. HACK is rated hold, hindered by lower liquidity, higher expense ratio, weaker performance, and greater downside risk, despite slightly broader sector diversification.

Amplify Cybersecurity ETF remains a "Buy" as it tests key long-term support despite recent underperformance versus the S&P 500. HACK's premium valuation and increased volatility warrant caution, but the sector's growth prospects, especially with AI, remain compelling. Technical analysis shows HACK near its 200-day moving average, with support likely to hold and potential for a year-end rally.

Thematic ETFs tied to trends like artificial intelligence and quantum computing have drawn billions in new money into the market, and the portfolios have been rewarding investors with big gains. But ETF Action's Mike Akins warns that investors need to be mindful of significant risks within these newer portfolio categories, such as similarly branded AI funds, where performance differs by as much as 60% this year.

As AI adoption surges and cyberattacks escalate, cybersecurity ETFs like CIBR and HACK stand out as investors seek digital defense gains.

CHICAGO, Oct. 01, 2025 (GLOBE NEWSWIRE) -- October is Cybersecurity Awareness Month, a global initiative to spotlight digital security. Amplify ETFs, a leading provider of breakthrough ETF solutions, is marking the occasion by spotlighting HACK, the first-to-market cybersecurity ETF, which provides investors a way to participate in the fast-growing cybersecurity sector.1 Projected at $454 billion in 2025, the global cybersecurity market is expected to hit over $1 trillion by 2031, expanding at nearly a 15% CAGR.2 Government spending reflects the same trend with the overall U.S. Department of Defense proposed budget growing 3.2% for 2024 vs.

Cybersecurity demand is set to rise, driven by AI threats, making the sector a long-term investment priority. Amplify Cybersecurity ETF has an odd selection process, including 33% of AUM in non-cybersecurity companies, diluting its sector focus. HACK's upside is limited by its methodology, missing out on higher-growth small-cap cybersecurity stocks.

The recent SharePoint breach indicates the urgent need for cybersecurity. Investors can use ETFs like HACK and CIBR to position themselves for the future of digital infrastructure.

Cybersecurity remains a durable growth industry, driven by the transition to single-platform solutions, autonomous operations, and the growing need for identity management solutions like Zscaler and CyberArk. HACK ETF offers concentrated exposure to top cybersecurity players, with diversification benefits from holdings like Broadcom and defense companies. Despite the relatively higher fees, HACK has outperformed peer ETFs and provides ample liquidity for active investors.

Rising Middle East tensions should spur gains in energy, gold, defense, and cybersecurity ETFs amid Israel's strike on Iran. These ETFs include the likes of XLE, AUMI, ITA and HACK.

Remarkably, the market is edging closer to record territory, following an impressive V-shaped reversal off its 52-week lows. Many investors may be seeking ways to gain exposure, particularly with the potential for a pullback and consolidation before another leg higher.