ETF Securities brings cyber security ETF to Europe

Sep 28th, 2015 | By | Category: Equities

ETF STRATEGY NEWS! ETF Strategy is delighted to announce the launch of ETF Strategy Hub (hub.etfstrategy.com), an on-demand repository of webcasts, videos, podcasts and white papers. Debuting with Special Series on Technology & Innovation in China and the Digital Economy.


ETF Securities, a London-based issuer of exchange-traded funds, has partnered with US-based index provider ISE ETF Ventures to launch the first European-listed ETF to offer pure-play exposure to the fast-growing cyber security sector.

ETF Securities bring cyber security ETF to European investors

ETF Securities’ new ETF offers investors targeted exposure to the growing cyber security industry.

Listed on the London Stock Exchange, the ETFS ISE Cyber Security GO UCITS ETF is linked to ISE Cyber Security UCITS Index, providing investors with a simple, liquid and cost-effective way to gain access to this high profile and increasingly important sector, which is forecast to grow at a compound annual growth rate of 9.8% to $170bn by 2020.

The ETF is based on a UCITS-compliant version of the index behind the hugely successful NYSE Arca-listed PureFunds ISE Cyber Security ETF, known colloquially by its exchange ticker code “HACK”, which attracted more than $1.1bn in assets under management in its first 10 months of trading.

Howie Li, Co-Head of Canvas, ETF Securities, commented: “With the success that ISE ETF Ventures has found bringing this exposure to the US market, this investment solution will provide European investors with a global portfolio of listed cyber security companies that capture activity from both emerging and established organisations. The dynamic world of disruptive technologies continues to advance and ETF Securities will continue to focus on harnessing the growth opportunities highlighted by technological advances and industry trends with new and innovative products.”

The long-term investment prospects for the sector are compelling. “As cyber crime continues to grow, governments and companies are prioritising cyber security as an essential investment,” added Kris Monaco, Head of ISE ETF Ventures. With 42.8m cyber attacks in 2014 and global cyber crime costing an estimated $400bn this is a sector we can expect to dominate headlines and corporate budgets.”

Commenting on the launch, Dr Nithin Thomas, an independent expert on cyber security and founder of London-based security start-up SQR Systems, said: “The float of the first dedicated cyber security ETF in the UK this morning is excellent news for the sector. The strategic importance of cybersecurity for the country is enormous, and a dedicated fund listed on LSE is a step in the right direction. I hope we will see much more activity in the coming months with funds dedicated to early stage companies as it is vital that we are able to call on home-grown expertise and technology rather than importing it from overseas. I hope that the ETFS LSE Cyber Security UCITS fund (ISPY) will be the first of many cyber security focussed funds and that we will see more interest in early stage investment, which is vital to support the next generation of security pioneers.”

The underlying index is comprised of companies actively involved in providing cyber security technology and services. In order to be eligible for inclusion in the index, companies must be of a certain minimum size, their shares must be subject to minimum stock exchange trading volumes and they must be traded on recognised global stock exchanges. The companies comprised in the index are either those which work to develop hardware and/or software that safeguards access to files, websites and networks, both locally and from external origins (Infrastructure Provider) or those that utilize these tools to provide consulting and/or cyber security services to their clients (Service Provider). The two groups are market cap weighted whereas the constituents within each group are equal weighted.

The ETF has sterling (ISPY LN) and US dollars (USPY LN) share classes and has a total expense ratio of 0.75%.

Tags: , , , , , , ,

Leave a Comment