CIBR vs HACK

Key Takeaways

• First Trust NASDAQ Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) both provide passive exposure to the cybersecurity theme but differ in index construction, with CIBR tracking the Nasdaq CTA Cybersecurity Index and HACK tracking the Nasdaq ISE Cyber Security Select Index.
• CIBR maintains broader diversification with approximately 44 holdings compared to HACK’s more concentrated portfolio of roughly 23 holdings, potentially offering different risk profiles within the same sector.
• Expense ratios are similar, with CIBR at 0.58% and HACK at 0.60%, making cost efficiency a minor differentiator favoring CIBR slightly in long-term holding scenarios.
• Both ETFs allocate heavily to technology, particularly software and services, though HACK incorporates a modestly larger weighting in defense and industrials companies involved in cybersecurity solutions.
• Structural similarities position the ETFs as close alternatives for investors seeking thematic cybersecurity exposure rather than direct competitors to broad-market funds.
• Liquidity profiles reflect their respective assets under management, with CIBR generally exhibiting higher trading volume consistent with its larger scale.

Introduction

First Trust NASDAQ Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) represent two established options for investors seeking targeted exposure to the cybersecurity sector. Both ETFs pursue passive strategies focused on companies providing cybersecurity hardware, software, and services, making them relevant alternatives within the same thematic niche. They do not compete directly with broad equity benchmarks but instead offer differentiated approaches to capitalizing on growing demand for digital security solutions amid evolving cyber threats and regulatory landscapes.

First Trust NASDAQ Cybersecurity ETF (CIBR) Overview

First Trust NASDAQ Cybersecurity ETF (CIBR) is a passively managed exchange-traded fund that seeks to track the performance of the Nasdaq CTA Cybersecurity Index. The fund holds approximately 44 securities, providing exposure across cybersecurity-focused companies primarily in the technology sector. Top holdings typically include Palo Alto Networks (PANW), Fortinet (FTNT), CrowdStrike Holdings (CRWD), Cisco Systems (CSCO), and Broadcom (AVGO). Sector allocations concentrate in technology services and electronic technology, with smaller positions in industrials and other areas. The expense ratio stands at 0.58%, and the fund employs a physical replication strategy with quarterly index rebalancing. Distinguishing features include its broader holdings count relative to peers and inclusion of companies classified by the Consumer Technology Association (CTA) as cybersecurity providers.

Amplify Cybersecurity ETF (HACK) Overview

Amplify Cybersecurity ETF (HACK) is a passively managed exchange-traded fund that seeks investment results corresponding to the Nasdaq ISE Cyber Security Select Index. The fund maintains a more concentrated portfolio of approximately 23 holdings, emphasizing companies where cybersecurity activities represent a core business driver. Prominent positions often feature Palo Alto Networks (PANW), Broadcom (AVGO), Cisco Systems (CSCO), Fortinet (FTNT), and CrowdStrike Holdings (CRWD), alongside defense-oriented names such as Northrop Grumman (NOC) and General Dynamics (GD). Allocations lean heavily toward technology, with notable exposure to industrials. The expense ratio is 0.60%, and the fund uses physical replication with quarterly rebalancing. Key characteristics include its status as one of the earliest cybersecurity-themed ETFs and a focus on both infrastructure providers and service providers under the ISE classification.

Industry and Thematic Backdrop

The cybersecurity sector operates within a dynamic environment shaped by rising digital transformation, escalating cyber threats, and increasing regulatory scrutiny around data protection. Macroeconomic factors such as interest rate expectations and corporate spending cycles influence capital allocation toward security infrastructure. Geopolitical developments and supply chain considerations also affect demand for hardware and services components. Both ETFs benefit from sustained enterprise investment in threat detection, cloud security, and compliance solutions, though sector risks include competitive intensity, technological disruption, and potential shifts in government spending priorities.

Performance and Positioning Comparison

In recent market cycles, both First Trust NASDAQ Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) have exhibited sensitivity to technology sector rotations and earnings momentum among leading cybersecurity providers. CIBR’s broader diversification has historically contributed to relatively moderated volatility compared to HACK’s more concentrated approach, which can amplify movements tied to a smaller set of holdings. Performance differences often trace to variations in top holdings and sector tilts, with HACK’s defense exposure providing distinct drivers during periods of heightened national security focus. Relative positioning reflects these structural nuances rather than isolated price events, with both funds responding to broader trends in enterprise technology budgets and cybersecurity spending patterns.

AI Screener

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Tickeron AI Verdict

Based on observable structural factors, Tickeron’s AI would likely assign a modest probabilistic edge to First Trust NASDAQ Cybersecurity ETF (CIBR) due to its slightly lower expense ratio, greater number of holdings supporting diversification, and established liquidity profile. These characteristics align with favorable cost efficiency and risk-mitigation attributes within the cybersecurity theme, though outcomes remain dependent on individual investor objectives and prevailing sector momentum.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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