ASX Cyber Security ETF in line with Saxo Market’s top performers

Increasingly sophisticated hackers are keeping government and corporate leaders awake at night.
The post ASX Cyber Security ETF in line with Saxo Market’s top performers appeared first on The Motley Fool Australia. –

July was another big month for ASX shares, with some enjoying tailwinds as others faced fresh troubles.

ASX travel companies came under renewed pressure with the COVID-19 delta variant seeing much of Australia’s eastern seaboard enduring a new wave of extended lockdowns.

Global markets were also roiled by further crackdowns in China, hitting tech shares and education companies.

Cybersecurity shares were, broadly, among the winners, with hackers remaining a top concern for governments and businesses around the globe.

This saw the Betashares Global Cybersecurity ETF (ASX: HACK) gain 6.5% in July. By comparison the All Ordinaries Index (ASX: XAO) gained a more modest 1.6% in July.

If you’re not familiar with HACK, the exchange traded fund (ETF) provides ASX investors with exposure to 39 leading global cyber security shares.

Its top holdings include Zscaler (7.0%), Crowdstrike Holdings (6.4%), Accenture (6.4%), and Cisco Systems (5.9%).

HACK’s strong run in July coincides with Saxo Markets’ report, released today, on the performance of their equity theme baskets in July.

Cyber security shares lift on demand and sentiment

According to Saxo Markets, cyber security shares led the pack among its equity baskets’ performance in July:

Cyber security was the big winner in July, up 5.1% driven by positive news sentiment and strong earnings momentum for the industry.

Last Wednesday, [US President Joe] Biden signed an executive order on cyber security which aims at upgrading the US on cyber security efforts and ensure the US is prepared for cyber-attacks, which recently included the big Colonial Pipeline which is critical US infrastructure.

Small-cap ASX cyber security share Archtis Ltd (ASX: AR9) also enjoyed a strong run in July, with shares closing the month up 40%.

With a current market cap of $79 million, you won’t find Archtis among HACK’s blue-chip holdings. Zscaler, for example, has a market cap of approximately AU$45 billion.

At the bottom of Saxo’s July performance list

With Chinese President Xi Jinping’s government continuing its crack down on tech companies and targeting the for-profit education market as well last month, Saxo’s worst-performing basket was its China Consumer & Technology basket, down 11.9% in July.

According to Saxo:

China is moving away from the previous economic growth at all-costs model emulated on the US/Hong Kong success to that of Germany with a much deeper focus on high-end technology clusters working together and with more frugal values emphasising less on consumption.

The new trajectory is also hitting Chinese IPOs in the US and caused an 11.9% decline in our China Consumer & Technology basket in July driven by foreign investors recalibrating their exposure to emerging markets and China.

China’s CSI 300 Index fell 8% in July. With a 12-month gain now whittled down to 7.7%, it now counts among the worst performers over the past year among the major global exchanges.

Spiralling back to cyber shares and HACK…

How has this ASX cyber security ETF been performing?

Over the past 12 months the HACK share price is up 31%, compared to a gain of 26% posted by the All Ords.

Year-to-date, the ASX cyber security ETF has gained 11%. Shares are down 1% in intraday trading today.

The post ASX Cyber Security ETF in line with Saxo Market’s top performers appeared first on The Motley Fool Australia.

Should you invest $1,000 in HACK right now?

Before you consider HACK, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and HACK wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

2 exciting ETFs for ASX investors in August

2 top ASX growth shares that might be worth buying

3 highly rated ETFs for ASX investors this month

3 popular ETFs ASX investors need to know

3 excellent ETFs for ASX investors in August

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!