CIBR vs HACK

Key Takeaways

• First Trust NASDAQ Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) both provide targeted exposure to the cybersecurity sector but differ in index methodology, resulting in variations in holdings concentration and diversification.
• CIBR tracks the Nasdaq CTA Cybersecurity Index with approximately 42-44 holdings and an expense ratio of 0.58%, while HACK follows the Nasdaq ISE Cyber Security Select Index with 22-24 holdings and a 0.60% expense ratio.
• CIBR offers broader diversification across cybersecurity companies, whereas HACK maintains a more concentrated portfolio that can lead to higher volatility tied to top holdings performance.
• Both ETFs employ passive index-tracking strategies with quarterly rebalancing, focusing exclusively on companies engaged in cybersecurity hardware, software, and services.
• Structural differences position CIBR for investors seeking wider exposure within the theme, while HACK suits those comfortable with higher concentration risk for potentially amplified sector returns during favorable cycles.
• Expense ratios remain competitive within the thematic ETF category, though CIBR's slightly lower cost supports long-term holding efficiency.

Introduction

Cybersecurity remains a critical growth area amid rising digital threats, regulatory scrutiny, and enterprise spending on data protection. First Trust NASDAQ Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) represent two prominent vehicles for investors seeking pure-play exposure to this theme. They do not compete directly as broad market funds but serve as alternative strategies targeting similar investor goals of capitalizing on cybersecurity innovation and adoption. This comparison highlights their structural distinctions to aid informed allocation decisions within a specialized sector.

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 index selects companies classified as cybersecurity firms by the Consumer Technology Association (CTA), spanning software, networking, and select industrial applications. The fund holds approximately 42-44 securities, with top holdings including CrowdStrike Holdings Inc. (CRWD), Fortinet Inc. (FTNT), and Cisco Systems Inc. (CSCO). Sector allocations concentrate in information technology, particularly software and services, with limited exposure outside pure cybersecurity plays. CIBR features an expense ratio of 0.58% and operates as an open-end fund with liquidity-weighted index methodology. It rebalances periodically to maintain alignment with index constituents, emphasizing established and emerging cybersecurity providers.

Amplify Cybersecurity ETF (HACK) Overview

Amplify Cybersecurity ETF (HACK) is a passively managed exchange-traded fund designed to replicate the Nasdaq ISE Cyber Security Select Index. This index focuses on companies deriving significant revenue from cybersecurity products and services. The fund maintains a more concentrated portfolio of 22-24 holdings, with prominent positions in Palo Alto Networks Inc. (PANW), CrowdStrike Holdings Inc. (CRWD), Cisco Systems Inc. (CSCO), and Fortinet Inc. (FTNT). Allocations remain heavily weighted toward technology, especially software and infrastructure providers. HACK carries an expense ratio of 0.60% and follows a rules-based selection process with periodic rebalancing. Its structure emphasizes a select group of leading cybersecurity firms, resulting in higher concentration compared to broader thematic peers.

Industry and Thematic Backdrop

The cybersecurity sector benefits from sustained enterprise demand driven by escalating cyber threats, cloud migration, and regulatory requirements such as data privacy mandates. Macroeconomic factors including interest rate environments influence capital allocation toward growth-oriented technology subsectors. Geopolitical tensions and supply chain digitization further support spending on secure infrastructure. Risks include potential slowdowns in IT budgets during economic uncertainty, intense competition among providers, and valuation compression in high-growth names. Both ETFs operate within this dynamic landscape, where innovation cycles and adoption rates determine relative performance across market cycles.

Performance and Positioning Comparison

In recent market cycles, both ETFs have exhibited sensitivity to technology sector rotations and earnings trends among leading cybersecurity providers. CIBR's broader holdings base has historically provided more stable exposure during periods of sector-wide momentum, while HACK's concentration has amplified returns when top constituents outperformed. Relative positioning reflects differences in volatility profiles, with the more diversified CIBR often demonstrating lower drawdowns in challenging environments. Interest rate expectations and broader equity sentiment continue to influence flows into thematic cybersecurity strategies, favoring funds with efficient cost structures and consistent index tracking.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener for data-driven insights.

Tickeron AI Verdict

Based on observable structural factors, Tickeron’s AI would currently assign a modest preference to First Trust NASDAQ Cybersecurity ETF (CIBR). Its lower expense ratio, greater number of holdings, and enhanced diversification profile offer a more balanced risk exposure within the cybersecurity theme while maintaining strong alignment with sector momentum. HACK remains competitive for investors prioritizing concentrated leadership exposure, though the probability-weighted edge favors CIBR's efficiency and breadth in prevailing market conditions.

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.

Disclaimers and Limitations