#7 - iShares Cybersecurity and Tech ETF (NYSEARCA:IHAK)
If you're looking to invest in cybersecurity stocks but prefer the diversification of stock ownership, consider an exchange-traded fund (ETF) to help reduce the risks associated with investing in individual stocks.In the iShares Cybersecurity and Tech ETF (NYSEARCA: IHAK). As of April 2025, the fund had $896.75 million of assets under management (AUM).
The fund was launched by BlackRock in 2019 and tracks a market-cap-selected and weighted index of large—and mid-cap stocks of companies in the cybersecurity sector. No fund has more than 5.4% of the weighting in the index.
A low expense ratio (0.47% as of April 2025) attracts many investors to the fund, helping mitigate any risk from investing in volatile stocks. Although about 68% of the fund’s holdings are of U.S. companies, the fund does provide broad international exposure.
About iShares Cybersecurity and Tech ETF
The iShares Cybersecurity and Tech ETF (IHAK) is an exchange-traded fund that is based on the NYSE FactSet Global Cyber Security index. The fund tracks a market cap-selected and -weighted index of large- and mid-cap companies involved in cyber hardware and software. IHAK was launched on Jun 11, 2019 and is managed by BlackRock.
- Current Price
- $44.64
- Asset Class
- Equity
- Fund AUM
- $879.10 million
- Expense Ratio
- 0.47%
- 6-Month Performance
- -11.46%
- 1-Year Performance
- 3.38%
As you can tell from the buy case for each of the stocks in this presentation, cybersecurity is a must-have, not a nice-to-have. And its impact is not limited to businesses. The outage caused by CrowdStrike's faulty software update in July 2024 reminded millions of Americans how dependent we are on our digital tools. That's one reason that cybersecurity will be one of the most investable sectors for years to come.
Plus, because cybersecurity deals with software, it will be insulated from any new or reciprocal tariffs. That doesn't mean there's no geopolitical risk. Some countries may choose to restrict which companies can operate within their borders, but many of these companies have international reach.
If you're still skeptical, just think about the device you're reading this on. It likely didn't exist 20 years ago, nor did the way in which you received this presentation. Technology continues to evolve, and so will the threats to digital security. Investing in cybersecurity stocks is a simple way to take what the market gives you.
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