Yahoo Finance Should You Invest in the First Trust NASDAQ Cybersecurity ETF (CIBR)?
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the First Trust NASDAQ Cybersecurity ETF (CIBR), a passively managed exchange traded fund launched on 07/06/2015.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $822.26 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. CIBR seeks to match the performance of the Nasdaq CTA Cybersecurity Index before fees and expenses.
The Nasdaq CTA Cybersecurity Index tracks the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.09%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Splunk Inc. (SPLK) accounts for about 6.33% of total assets, followed by Vmware, Inc. (VMW) and Cisco Systems, Inc. (CSCO).
The top 10 holdings account for about 47.51% of total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ Cybersecurity ETF has gained about 23.92% so far, and it's up approximately 31.72% over the last 12 months (as of 09/14/2018). CIBR has traded between $21.53 and $28.68 in this past 52-week period.
The ETF has a beta of 0.99 and standard deviation of 16.77% for the trailing three-year period, making it a medium risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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FT-NDQ CYBERSEC (CIBR): ETF Research Reports
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Splunk Inc. (SPLK) : Free Stock Analysis Report
Vmware, Inc. (VMW) : Free Stock Analysis Report
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