[Infowarrior] - Second cybersecurity ETF launches

[Richard Forno]

(x-posted)

Posted without comment.    --rick


http://blogs.barrons.com/focusonfunds/2015/07/06/second-cyber-security-etf-to-launch-tuesday/

July 6, 2015, 4:45 P.M. ET
Second Cyber-Security ETF to Launch Tuesday

By Chris Dieterich

A second cyber-security exchange-traded fund will hit the market tomorrow, just as the sector is hitting a major bout of turbulence. 

First Trust Advisors announced in a statement that the First Trust NASDAQ CEA Cybersecurity ETF (CIBR) will debut on Tuesday, July 7.

The new ETF will attempt to mimic the popularity the PureFunds ISE Cyber Security ETF (HACK), which first hit markets in November. The investment thesis behind holdings such as FireEye (FEYE) and CyberArk Software (CYBR) relies on ramped-up spending by corporations and governments to defend against hacker attacks.

Just keep in mind that many stock in the space are small-cap, momentum plays that can can turn around in a hurry. HACK is off more than 9% over the past two weeks, a period that’s seen increased volatility amid Greece’s will-it, won’t-it action. Over that same stretch, the PowerShares QQQ (QQQ) is down just 2%.

HACK declined 1.4% on Monday.

Here’s Ryan Issakainen, ETF strategist at First Trust:

“Along with the clear benefits of an increasingly interconnected world comes the growing need to ensure the security of cyberspace. This presents significant opportunities for companies involved with this task, many of which are not represented in traditional index ETFs. We believe this ETF provides a diversified, efficient way for investors to gain exposure to this important theme.”

--
It's better to burn out than fade away.