White label exchange-traded fund issuer ETF Managers Group (ETFMG) has announced a reduction in the management fee for the PureFunds ISE Cyber Security ETF (NYSE Arca: HACK) from 0.75% to 0.60%, effective as of 1 May 2017.

As of 1 May 2017, the PureFunds ISE Cyber Security ETF costs 0.60% in fees.

Samuel Masucci, CEO and Co-founder of ETFMG, said, “The Board reviews fee levels, and other aspects of the funds within the ETF Managers Trust at every Board meeting. The Board decided to reduce the management fee for HACK based on its asset level, internal costs and in consideration of the overall fee compression across the ETF market. It’s a comprehensive review process, and we believe HACK’s fee of 60 basis points is very reasonable based on the fund’s exposure.”

A number of high profile cybersecurity attacks recently have not only highlighted the growing scale of online security problems but also the potential for attractive returns for cybersecurity firms as industry demand surges. Such attacks include those on Sony Pictures, Dropbox, Yahoo, Ashley Madison and LinkedIn.

In line with the growing awareness of the importance of robust online defences, the amount of new money pouring into HACK has gained momentum. The firm reports that between 1 May and 9 June there have been net positive flows of approximately $160 million into HACK, constituting around 42% of the $377m net inflows into the fund this year. As of 9 June 2017, HACK’s assets under management exceeded $1.1bn.

HACK was the first fund to exclusively track the performance of the cybersecurity sector. It tracks the ISE Cyber Security Index and mostly focuses on US-based companies (70%), with Israel as the second largest segment at 10%. Sub-industries include software (the largest segment at 59.7%), communications equipment (16.2%) and IT consulting and services (9.1%).