IHAK ETF: What Is It? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
A thematic iShares ETF that invests in key companies providing global cybersecurity and network protection solutions.
SubscribeWhat Is This ETF?
It tracks the NYSE FactSet Global Cyber Security Index and holds high-quality companies worldwide that generate more than half of their revenue from providing cybersecurity solutions. Beyond the United States, it also includes companies from countries with strong security technology sectors, such as Israel and Taiwan.
It is well suited to investors who want to focus on the long-term growth potential of the cybersecurity industry, including cloud security and threat detection.
Launched in 2019 by BlackRock (iShares), it is a passively managed ETF that tracks an index.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | NYSE FactSet Global Cyber Security Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Once a year (weighting adjustment once every six months) |
| Distribution Frequency | Semiannual |
| Expense Ratio | 0.47% |
The fund holds companies with a competitive edge in cybersecurity hardware and software in proportion to their market capitalization, while capping individual positions to secure diversification. Its portfolio is characterized by a focus on growth stocks with high-tech security capabilities.
- Includes companies from Israel and Taiwan, global powerhouses in security technology
- Built around companies with high pure-play exposure to cybersecurity
Size and Costs
Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.47% per year.
Even though it is a passive ETF that tracks an index, it reflects the fast-changing technology landscape by replacing holdings on a regular schedule, allowing it to capture the latest trends in the industry.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAs companies move to the cloud and cyberattack threats increase, spending on security solutions has been rising. Backed by solid demand even within the technology sector, the fund has continued to grow.
As digital security becomes essential to national security and corporate management, inflows into thematic assets have continued, and the fund's relative earnings stability stands out even during periods of market volatility.
Strengths and Weaknesses
The fund invests in the high growth and essential-good nature of the security industry, but it can be exposed to the high valuations and volatility typical of technology stocks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
SMH (semiconductors) and SHLD (defense technology), shown in the table, fall within the broad category of technology stocks, but IHAK focuses more purely on security solutions. Compared with strategies that invest in disruptive innovation technologies, such as FDTX, it has a clearer target in cybersecurity. Direct competitors include HACK, the original security ETF, and CIBR, which has abundant trading volume. For those who want a product specialized in more recent cloud security, BUG and WCBR are also alternatives worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SMH | VanEck Semiconductor ETF | $568.51 | +1.9% | $71.0B | 0.35% | 0.19% | +56.6% |
 SHLD | Global X Defense Tech ETF | $63.29 | +0.1% | $6.6B | 0.50% | 0.53% | -7.0% |
 FDTX | Fidelity Disruptive Technology ETF | $55.80 | +1.1% | $307.7M | 0.50% | - | +29.8% |
 BCTK | Baron Technology ETF | $29.23 | +0.7% | $249.1M | 0.75% | 0.17% | - |
 CHPS | Xtrackers Semiconductor Select Equity ETF | $82.63 | +3.2% | $134.5M | 0.15% | 0.37% | +80.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 YOU | Clear Secure Inc | 0.07% | $45.48 | -0.1% | $6.2B | 31.0 | 1.54% |
 AKAM | Akamai Technologies Inc | 0.05% | $98.10 | -1.5% | $14.1B | 35.4 | - |
 QLYS | Qualys Inc | 0.05% | $223.52 | -1.9% | $7.7B | 38.7 | - |
 VRNS | Varonis Systems Inc | 0.05% | $48.90 | -0.4% | $5.6B | - | - |
| PANW | Palo Alto Networks Inc | 0.05% | $394.54 | -1.8% | $322.7B | 769.8 | - |
 S | SentinelOne Inc | 0.05% | $25.59 | -0.2% | $8.9B | - | - |
| OKTA | Okta Inc | 0.05% | $222.66 | -1.5% | $38.9B | 134.5 | - |
 BB | BlackBerry Ltd | 0.05% | $9.40 | -1.6% | $5.5B | 72.3 | - |
 TENB | Tenable Holdings Inc | 0.04% | $48.72 | +0.1% | $5.4B | 842.9 | - |
| ZS | Zscaler Inc | 0.04% | $255.91 | -1.6% | $41.7B | - | - |
Investor Checkpoints
Before deciding to invest in IHAK, review the following key industry characteristics and portfolio structure in advance, and carefully consider whether they fit your own investment strategy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💻 Security Spending Outlook | Confirm the trend of rising security budgets among companies and governments | Important |
| 📈 Valuation Level | Whether the current price levels of holdings are reasonable relative to their historical averages | Needs review |
| 🛡️ Downside Resilience | Assess how resilient the fund is relative to other technology stocks when the market falls | Moderate |
Investors should pay particular attention to the fact that, in the cybersecurity sector, share prices can swing sharply in the short term on news of individual companies' technology leaks or large-scale hacking incidents.
In conclusion, it is a thematic product suited as one pillar of a technology stock portfolio for investors who believe in the long-term growth of digital security, an essential infrastructure of the Fourth Industrial Revolution.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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