Tag Archives: $HACK

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What’s Next? A Fintech ETF!

Just when you were about to ask “What’s the next type of exchange-traded fund that nobody else has come up with?, PureFunds has launched a fintech ETF!

If you’re not familiar with the phrase ‘fintech’, you’re likely not qualified to put assets into this latest exchange-traded fund that specializes in one of the hottest trends-financial technology companies.

Caveat: According to 4 Pinocchio star winner Donald Trump, “Many people are saying..” that “fintech” is a phrase associated with start-up companies focused on delivering innovative software applications used to streamline financial industry centric services. The fact is that ‘fintech’ is a term that is applied to the full gamut of companies that specialize in financial industry technology solutions, as evidenced by the criteria for constituents within PureFunds latest ETF product, Solcative Fintech ETF (FINQ).

FINQ allows investors to invest in this fast-growing segment of the industry without having to select individual companies. The rules- based index approach allows us to capture exposure to companies at the forefront of innovation in the financial industry.”

But don’t just take our word for it, below is the press release that just crossed the tape..

SUMMIT, N.J.–(BUSINESS WIRE)–ETF Managers Group in partnership with PureFunds today debuted their newest fund, the PureFunds Solactive FinTech ETF (FINQ).

“FINQ allows investors to invest in this fast-growing segment of the industry without having to select individual companies. The rules- based index approach allows us to capture exposure to companies at the forefront of innovation in the financial industry.”

Trading on the NASDAQ, the fintech ETF “FINQ” invests in global companies disrupting the multi-trillion dollar financial industry by offering technology-based solutions designed to revolutionize how financial industry firms interact with their customers and run their businesses.

The fund’s holdings include technology services companies that principally derive revenue from the sale of financial-related information, financial data analysis services, financial services software tools or platforms or web-based financial services. Each company in the fund and its corresponding index – 31 in total – has a minimum market cap of $200 million.

“Financial technology is a rapidly growing subsector of the overall financial services industry, and our fintech ETF FINQ seeks to tap into the potential investment opportunity created by these disruptive, forward- thinking companies,” Andrew Chanin, CEO of PureFunds, said. “FINQ allows investors to invest in this fast-growing segment of the industry without having to select individual companies. The rules- based index approach allows us to capture exposure to companies at the forefront of innovation in the financial industry.”

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Sam Masucci founder and CEO of ETF Managers Group said, “The idea behind PureFunds ETFs is to make available – in a single diversified investment – unique areas within markets that have been greatly enhanced by technology. Technology allows businesses to offer new innovative services that can positively affect a consumer’s experience.”

FINQ will cost 68 basis points* and will be equal weighted. It joins PureFunds’ suite of products, BIGD, GAMR, HACK, IFLY, IPAY, SILJ and IMED, which also begins trading today on the NASDAQ.

* A basis point is one hundredth of a percent

About PureFunds

As an innovator of ETF concepts, PureFunds® strives to provide the market with easy access to in-demand industries through pure-play ETFs. We are a New York City-based research and business management firm, serving as the Manager and/or Sponsor to the suite of PureFunds ETFs. We aim to provide investors with tactical ETFs that may offer attractive investment opportunities in sectors that traditionally have been difficult to invest in. With vast experience in global equity investing and ETF trading, PureFunds has a refreshing and alternative insight into the growing world of ETFs. We have constructed our distinct suite of products in an attempt to meet the needs of investors and traders alike.

About ETF Managers Group

ETF Managers Group, LLC is a leading Exchange Traded Funds (ETF) private label services company. ETF Managers Group offers a full range of ETF product services to the asset management community including commodity pool ETPs as well as both active and passive ETF funds. The services provided include product operations, regulatory, financial and compliance management. ETF Managers Group offers active marketing and dedicated wholesale services for all ETF product types and index construction.

J.P. Morgan War On Hacking Boosts ETF $ HACK

MarketMuse update courtesy of Yahoo Finance from ETF Trends. 

Earlier in the week, MarketMuse profiled cyber security ETFs recent boost and today, Brokerdealer.com profiled how J.P. Morgan’s war on cyber security is costing bankers’ jobs, so it only seemed fitting that MarketMuse combine to two subjects for today’s MarketMuse post. Since the threat of cyber security doesn’t seem to be going away anytime soon, J.P. Morgan is spending more money on cyber security protection and less money investors’ salaries resulting in the lowest banker hiring rate in recent years and growing cyber security ETFs.   

In what has become an almost daily affair in recent weeks, the PureFunds ISE Cyber Security ETF (HACK) is hitting record highs again Thursday and doing so on strong volume.

HACK, the first exchange traded fund dedicated to the cyber security industry, is up 1% today on volume that is already 36% above the daily average. As has been the case with HACK over its brief trading history (the ETF debuted in November), the catalysts for Thursday upside are easy to identify.

Namely, a Bloomberg article detailing J.P. Morgan Chase’s (JPM) commitment to bolstering its cyber security through increased spending and hiring of former military members. The bank was victimized by a cyber security breach in June 2014.

Given HACK’s penchant for responding favorably to such news items (see the controversy surrounding “The Interview” and the ETF’s reaction to the recent Anthem Blue Cross hack), it is not a stretch to say that if HACK was around in June, it would have soared in the days following news of the J.P. Morgan hack. [Anthem Hack Lifts Cyber Security ETF]

HACK did not exist in June 2014, but J.P. Morgan is having a favorable impact on the ETF. In October 2014, J.P. Morgan Chase (JPM) CEO Jamie Dimon said the banking giant will likely double its cyber security spending to $500 million within the next five years.

Important to HACK, Dimon is making good on that promise. J.P. Morgan’s security operation has 1,000 staffers, double the size of the comparable unit at Google (GOOG), according to Bloomberg. Add to that, J.P. Morgan is far from the only major financial services that is expected to increase cyber security spending in the coming years.

Citigroup’s (NYSE: C) cyber security budget jumped to $300 million at the end of last year while Wells Fargo (WFC) spends roughly $250 million a year on cybersecurity and has increased staffing in the area by 50%, according to the Wall Street Journal.

Increased cyber security spending by financial services firms is seen as a boon for companies such as FireEye (FEYE), Palo Alto Networks (PANW) and Japan’s Trend Micro. All three are members of HACK’s portfolio with FIreEye and Palo Alto Networks combining for 9.7% of the ETF’s weight.

Earlier this week, HACK surged after Russia’s Kaspersky Lab, a major cyber security firm, said a group of hackers have stolen as much as $1 billion from over 100 banks in 30 countries since late 2013.

Investors are buying into the thesis that increased cyber security spending bodes well for HACK’s longer-term potential. The ETF that the fund is now home to $231 million in assets under management, confirming HACK’s place on the list of most successful ETFs to debut in 2014. Impressively, HACK’s ascent to $231 million in AUM means the ETF has more than doubled in size over the past six weeks after topping $100 million in assets in early January. The ETF debuted in November.

For the original article, click here.

Threat Of Hackers Grows And So Does Cyber Security ETFs

MarketMuse update courtesy of Todd Shriber of ETF Trends, profiles the increase in cyber security ETFs as the threats of being hacked become more and more relevant.

The PureFunds ISE Cyber Security ETF (NYSEArca: HACKcontinues to cement its status as a legitimate event-driven exchange traded fund.

HACK is higher by 0.7% Tuesday on volume that is already more than quadruple the daily average after Russia’s Kaspersky Lab, a major cyber security firm, said a group of hackers have stolen as much as $1 billion from over 100 banks in 30 countries since late 2013.

Various media outlets are reporting those hackers are more interested in financial gain than pilfering personal information from the banks’ customers. That point is unlikely to assuage the banks or their customers, but it is enough to have HACK trading at record highs for the second consecutive session.

HACK’s Tuesday momentum is carrying over from last Friday when the ETF soared to a record high on volume of nearly 1.4 million shares as President Obama hosted the first-ever cyber security summit, which featured luminaries from throughout the tech industry, including Apple (NasdaqGS: AAPL) CEO Tim Cook.

Importantly, most of the action in HACK last Friday was of the bullish variety. So intense was buying activity in the ETF that the fund is now home to $231 million in assets under management, confirming HACK’s place on the list of most successful ETFs to debut in 2014. Impressively, HACK’s ascent to $231 million in AUM means the ETF has more than doubled in size over the past six weeks after topping $100 million in assets in early January. The ETF debuted in November.

News of the $1 billion bank hack, while positive for HACK in the near-term, also serves as reminder of the long-term opportunity with the ETF because the financial services industry is expected to be one of the largest spenders on cyber security enhancements in the coming years.

In October 2014, J.P. Morgan Chase (NYSE: JPM) CEO Jamie Dimon said the banking giant will likely double its cyber security spending to $500 million within the next five years.

HACK benchmarks to the ISE Cyber Security Index, “which tracks the performance of companies actively engaged in providing services for cyber security and for which cyber security business activities are a key driver of their business model. These cyber security services are designed to protect computer hardware, software, networks and data from unauthorized access, vulnerabilities, attacks and other security breaches,” according to PureFunds.