Topic: How To Invest

Q: Pat, with so many businesses and consumers increasingly vulnerable to hackers, what do you think about investing in the First Trust Nasdaq Cybersecurity ETF? Thanks.

Article Excerpt

A: The First Trust Nasdaq Cybersecurity ETF, $22.81, symbol CIBR on Nasdaq (Units outstanding: 46.3 million; Market cap: $1.1 billion; www.ftportfolios.com), gives you direct exposure to companies in the cybersecurity industry. Their products and services help protect the integrity of data in private and public networks, computers and mobile devices. The ETF tracks the Nasdaq CTA Cybersecurity Index. To be included in the index, a company must have its shares listed on a global stock exchange, meet minimum size and liquidity requirements and be classified as a cybersecurity company by the Consumer Technology Association. Stocks are weighted based on their liquidity and are capped to avoid abnormally large holdings in a single stock. The fund invests globally for investors, but most of its holdings are listed in the U.S. (81%), the U.K. (7%), Israel (6%), and Japan (3%). The ETF launched in July 2015,and has an MER of 0.60%. The ETF currently holds 42 stocks. Its top stocks include Okta (U.S.; 6.6%), Cisco…

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