Amplify Cybersecurity ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in quality exposure and an overweight in liquidity exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Broadcom

Cisco Systems

General Dynamics

Palo Alto Networks

Northrop Grumman

CrowdStrike

Fortinet

Cloudflare

Booz Allen Hamilton Hld

Check Point Software Technologies

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Amplify Cybersecurity ETF earns an Above Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 93% also underpins the rating. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 42%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that generally correspond (before fees and expenses) to the total return performance of the Nasdaq ISE Cyber Security Select Index.  Under normal circumstances, the fund invests at least 80% of its net assets (plus borrowings for investment purposes) in companies actively involved in providing cyber security technology and services, and in accordance with the ISE Cyber Security® Industry classification. The index will consist of a selection of constituents in the Nasdaq ISE Cyber Security Index (the “Parent Index”). The fund is non-diversified. 

 The portfolio is overweight in industrials and technology relative to the category average by 11.2 and 7.0 percentage points, respectively. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 9.4 and 4.4 percentage points of assets, respectively. The strategy owns 26 securities and is quite concentrated. More concretely, 58.6% of the fund’s assets are housed within the top 10 holdings, versus the typical peer's 52.3%.

Above Average

Process

Amplify’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There are three managers listed on the fund: Anand Desai, Ernesto Tong, Dustin Lewellyn. The team is well equipped, with an average of 11 years of portfolio management experience. Together, they manage a total of 28 strategies, with solid long-term prospects. The strategies average a Bronze asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Average

People

While differentiated from much of the competition, Amplify ETFs' concentrated lineup of largely thematic exchange-traded funds harbors considerable risk. It earns a Below Average Parent Rating.

Amplify targets niches not previously explored by larger ETF firms. This leads to product launches in relatively narrow parts of the market like cannabis, online retail, and battery technology. A recent acquisition of 12 mostly thematic ETFs from ETF Managers Group only enhances this focus. Products like these tend to be extremely concentrated and volatile, inviting significant risks to their investors, not the least of which are ill-timed purchases and sales. Because of these risks, product success is unpredictable and leads to more closures than there are among traditional strategies. Since its 2016 founding, Amplify has merged or liquidated several ETFs that failed to gain traction or produced poor results.

Five subadvisors are responsible for the day-to-day management of Amplify's 29 ETFs. The firm regularly reviews subadvisor activity and performance and risk data but does not have a dedicated risk management team. Overall, its subadvisory relationships seem to emphasize product development and distribution rather than long-term, proven investment merit.

Amplify ETFs does what it sets out to do—offer investors differentiated ETF strategies—and leadership comes with considerable ETF experience. The firm's ETFs are not cheap but neither are they particularly pricey. Many levy category-competitive fees. Few of Amplify's ETFs should be considered core holdings, but they can serve a purpose for investors seeking specific exposures so long as shareholders understand the risks embedded.

Below Average

Parent

Amplify Cybersecurity ETF

HACK tracks a tiered, equal-weighted index that targets companies actively involved in providing cybersecurity technology and services.

HACK tracks a market cap-weighted index of companies around the globe that are actively involved in providing cybersecurity technology and services.

SentinelOne

When it comes to cybersecurity, we're not even close to being prepared. All of which makes these top cybersecurity stocks to buy even more attractive.

If You Can Only Buy One Cybersecurity Stock in April, It Better Be One of These 3 Names

Amplify Cybersecurity ETF offers broad exposure to stocks specializing in cybersecurity and protecting against cyber criminals.

HACK ETF: Military-Grade Cybersecurity Has Become Crucial

Global X Cybersecurity ETF

First Trust NASDAQ Cybersecurity ETF

TrueShares Technology, AI and Deep Learning ETF

WisdomTree Cybersecurity Fund

CrowdStrike (CRWD) reported solid fourth-quarter 2024 results. It surpassed estimates earnings and revenue estimates and provided upbeat guidance for the ongoing quarter and the full year.

ETFs to Buy on CrowdStrike's Q4 Earnings Beat, Upbeat View

FT Cboe Vest DJIA Dogs 10 Target Income ETF

iShares U.S. Telecommunications ETF

iShares MSCI USA Value Factor ETF

Cisco (CSCO) beat estimates on both earnings and revenues but provided a weak outlook and revealed plans to lay off 5% of its global workforce, pushing its share price down.

Cisco Beats on Earnings, Trims Outlook: ETFs in Focus

Amplify AI Powered Equity ETF

DoubleLine Commercial Real Estate ETF

Strategy Shares Gold-Hedged Bond ETF

Amplify Mobile Payments ETF

Victoryshares THB Mid Cap ESG ETF

Amplify Junior Silver Miners ETF

Pacer Metaurus US Large Cap Target Dividend 300 ETF

Vaneck Bitcoin Strategy ETF

PGIM US Large-Cap Buffer 12 ETF - February

PGIM US Large-Cap Buffer 20 ETF - February

Tidal ETF Trust Intelligent Real Estate ETF

The past week saw a total of 13 ETF launches. There were also a host of material changes to existing funds, and some closure activity.

This Week in ETFs: A Baker's Dozen of New ETFs

Amplify Travel Tech ETF

Amplify Etho Climate Leadership US ETF

Amplify Video Game Tech ETF

Amplify Treatments Testing & Advancements ETF

Amplify BlueStar Israel Technology ETF

Amplify Global Cloud Technology ETF

Amplify Alternative Harvest ETF

Amplify US Alternative Harvest ETF

CHICAGO, Jan. 29, 2024 (GLOBE NEWSWIRE) -- Amplify ETFs announced today it has completed its previously announced acquisition of ETF Managers Group (ETFMG) exchange-traded fund (ETF) assets, which consist of over $3.7 billion of assets under management (AUM) across 14 ETFs (as of 1/26/2024). Amplify ETFs will now manage $9.1 billion of AUM as of 1/26/2024.

Amplify ETFs Completes Acquisition to Reach $9.1 Billion AUM Across 31 ETFs

SPDR Gold Trust

iShares U.S. Aerospace & Defense ETF

Proshares Online Retail ETF

iShares PHLX Semiconductor ETF

Sprott Uranium Miners ETF

While Wall Street may be celebrating the dodging of the recession bullet last year, it doesn't mean that it's the only one in the chamber, meaning that ETFs to buy for diversification remains a viable idea. That's not to say that individual stock picking shouldn't be attempted.

7 Must-Buy ETFs for Top-Tier Portfolio Diversification

Cybersecurity is becoming increasingly important as the digital economy expands, leading to a rise in investments in cybersecurity companies. The ETFMG Prime Cyber Security ETF is a popular choice for investors looking to gain exposure to the cybersecurity sector. The HACK ETF's top holdings include OKTA, Zscaler, Fortinet, Cloudflare, and CrowdStrike, providing diversification across the industry.

HACK: Cybersecurity Only Set To Grow

Global X Artificial Intelligence & Technology ETF

Amplify Lithium & Battery Technology ETF

Bitwise Web3 ETF

Roundhill Generative AI & Technology ETF

Loncar Cancer Immunotherapy ETF

VanEck Video Gaming and eSports ETF

iShares Genomics Immunology and Healthcare ETF

iShares Cybersecurity and Tech ETF

Global X Lithium & Battery Tech ETF

Roundhill Ball Metaverse ETF

MUSQ Global Music Industry ETF

Defiance Quantum ETF

ALPS Medical Breakthroughs ETF

Robo Global Artificial Intelligence ETF

SoFi Web 3 ETF

Wisdomtree Artificial Intelligence And Innovation Fund

To use a holiday analogy, I have been checking lists and checking them twice to figure out which of next year's top disruptive investment themes are likely to be nice.

Disruptive Tech Theme of the Week: 7 Disruptive Themes for 2024

We're still not prepared for cyberattacks. Even after all the warnings and attacks, we're still sitting ducks, creating opportunities for some of the best cybersecurity stocks.

The 3 Best Cybersecurity Stocks to Buy in December

Rapid7

Cybersecurity stocks are great long-term buys because unbelievably, we're still not prepared for cyber attacks. Even after hundreds of attacks over the years, some of the biggest companies in the world – even government agencies aren't prepared.

7 Cybersecurity Stocks You'll Regret Not Buying Soon: November 2023

In a changing IT landscape, organizations are investing in cybersecurity to safeguard their digital assets and operations. As IT spending evolves, cybersecurity remains a critical focus.

Here's Why Cybersecurity ETFs Are At a 52-Week High

Apple

Datadog

iShares Russell 2000 ETF

Invesco QQQ

Zscaler

Mr. Market has thrown up big tells on which sectors are likely to outperform going forward. My top two sector picks are mega cap technology and cybersecurity stocks, both of which are displaying relative strength.

Mega-Cap Technology And Cybersecurity Stocks Leading The Market (Technical Analysis)

With the increasing adoption of AI and rising corporate spending on cybersecurity, look into cybersecurity ETFs to capitalize on the market's long-term growth prospects.

Growing Need for Cybersecurity Puts These ETFs in Focus

We first start off by juxtaposing HACK's qualities versus the other big option in this space - CIBR. Cybersecurity spending may be witnessing some sequential slowdowns but even in a difficult year, the expected topline of HACK's top holdings are resilient enough. We touch upon other reasons why the cybersecurity theme still has legs.

HACK ETF: Not Quite A Perfect Buy, But Still Has Some Merit

For investors seeking momentum, ETFMG Prime Cyber Security ETF HACK is probably on the radar. The fund just hit a 52-week high and is up 32.02% from its 52-week low price of $40.65/share.

Cybersecurity ETF (HACK) Hits New 52-Week High

Proshares Big Data Refiners ETF

The Future Fund Active ETF

iShares North American Tech-Multimedia Networking ETF

Pacer Data And Digital Revolution ETF

IP-based networking company Cisco Systems (CSCO) has announced its acquisition of cybersecurity heavyweight, Splunk (SPLK), for a staggering $28 billion.

ETFs in Focus as Cisco Acquires Splunk in $28 Billion AI-Deal

ProShares Ultra Nasdaq Cybersecurity

The cybersecurity space has outperformed the broader tech space past month despite rising rate worries.

Inside the Latest Rally in Cybersecurity ETFs

Breakwave Dry Bulk Shipping ETF

Amplify Transformational Data Sharing ETF

Breakwave Tanker Shipping ETF

Amplify Seymour Cannabis ETF

Amplify CWP Dividend & Option Income ETF

Amplify Online Retail ETF

In June, the ETF industry learned that issuer ETF Managers Group would be selling its funds to Amplify ETFs. The transaction, once completed, will bring Amplify's total AUM to $8 billion invested across 29 ETFs.

Amplify's Christian Magoon on Purchase of ETFMG's ETFs

Roundhill IO Digital Infrastructure ETF

SPDR S&P Kensho Future Security ETF

NVIDIA

Invesco Dynamic Networking ETF

First Trust Cloud Computing ETF

First Trust NASDAQ Technology Dividend Index Fund

Tesla

Zoom Video

The tech-heavy Nasdaq Composite Index delivered awful performances for the last three weeks, only to stage a recovery this week.

The Mood is Back in Tech Investing: ETFs in Focus

Global X Funds - Global X E-commerce ETF

SPDR S&P Kensho Smart Mobility ETF

iShares Self-Driving EV and Tech ETF

While the technology sector more than likely offers the best chance for maximum upside, its underlying risks warrant a closer look at the best tech funds to buy. Don't get me wrong.

The 7 Best Tech Funds to Buy in August

Asian Growth CUBS ETF

TrueShares ESG Active Opportunities ETF

Hartford Schroders ESG US Equity ETF

Global X MSCI Nigeria ETF

Nightshares Russell 2000 ETF

Nightshares Russell 1000 ETF

Revere Sector Opportunity ETF

The week ending Friday, July 21, has been busy for the ETF industry, though launches were muted. A total of seven funds rolled out, which suggests the market could be entering some kind of summer slump.

This Week in ETFs: A Summer Slowdown

Cybersecurity stocks fell Wednesday after Microsoft Corp. announced an expansion into network security, and rebranded its Azure Active Directory to reflect that move, which could haunt pure-play security vendors in the long term.

Microsoft cybersecurity expansion poses long-term ‘ramifications' for Palo Alto Networks, Cloudflare, others

ETFMG Prime Cyber Security ETF provides investors with broad exposure to the US cybersecurity industry, focusing primarily on large-caps and mid-caps. The cybersecurity industry has favorable long-term growth projections, with the industry expected to grow at a CAGR of 22.5% from 2023-2028, reaching $148 billion by 2032. HACK seems to have hit its lowest point in late 2022 and has since been experiencing a subtle uptrend that mirrors the trajectory of the S&P 500.

HACK: A Cybersecurity ETF That Has Likely Bottomed Out

Artificial Intelligence is a doubt-edged sword for cybersecurity. For example, a key talking point at the RSA Conference 2023, as cited on techtarget.com, was the multifaceted impact of OpenAI's GPT-4 on cybersecurity.

Cybersecurity ETFs Set to Gain from AI's Usage in Scams

News for Amplify Cybersecurity ETF ETF (HACK)