Weakness in ETFMG Prime Cyber Security ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy gets a Low Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an 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 team managing this passive strategy earns a Low People Pillar rating. To be considered a quality steward, this strategy's parent organization needs to improve factors like a lack of inside investments from portfolio managers and a relatively inexperienced portfolio management team. As a result, the firm obtains a Low Parent Pillar rating.

Analyst Rating

CrowdStrike

Zscaler

Splunk

Palo Alto Networks

Cloudflare

Booz Allen Hamilton Hld

Leidos Hld

Akamai Technologies

Check Point Software Technologies

Gen Digital Inc

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. ETFMG Prime Cyber Security ETF earns a Low Process Pillar rating. The most substantial detractor from the rating is the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's five-year risk-adjusted success ratio of 14% also holds the rating back. 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, before fees and expenses, and correspond generally to the total return performance of the Prime Cyber Defense Index.  The index tracks the performance of the exchange-listed equity securities of companies across the globe that (i) engage in providing cyber defense applications or services as a vital component of its overall business or (ii) provide hardware or software for cyber defense activities as a vital component of its overall business. The fund invests at least 80% of its total assets in the component securities of the index and in ADRs and GDRs based on the component securities in the index. 

 The portfolio is overweight in technology and industrials relative to the category average by 9.9 and 7.9 percentage points, respectively. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 8.6 and 4.8 percentage points of assets, respectively. The strategy owns 52 securities and is about as top-heavy as the category average, with 48.1% of assets in the top 10 holdings.

Process

ETF Managers’s team receives a Low People Pillar rating. The number one detractor from the rating is the turnover of talent across its parent firm. The firm's asset-weighted manager tenure of six years suggests it could do more to retain portfolio managers. The managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns, also detracts from the team. The turnover of its management team limits the rating further. Specifically, the fund last had a manager change one year ago.

People

ETF Managers lags peer asset managers in a number of stewardship qualities, resulting in a Low Parent Pillar rating. A quality holding back ETF Managers from the top tier of stewards is its managers' limited personal investments in their respective products, which helps to align portfolio manager and shareholder interests. Currently, none of the firm’s assets are covered by invested managers. With an average asset-weighted tenure of six years among the longest-tenured managers at ETF Managers, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fund fees on its products fall in the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.

Parent

ETFMG Prime Cyber Security ETF

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

HACK offers targeted exposure to the theme with undeniably paramount importance, namely cyber defense architecture & application providers, which have an essential role in the global economy. Yet HACK is valued at a premium to QQQ, has a few vulnerabilities on the quality side, and barely spectacular short-term growth.

HACK: Promising Theme, Enormous Addressable Market, Yet There Are Downsides

Cisco Systems

Fortinet

First Trust NASDAQ Cybersecurity ETF

As cloud-software valuations have been slashed this year, cybersecurity stocks have been the safest play in the sector, but they have been slammed this week and Thursday's decline seemed to stem from just one poor forecast.

Security-software stocks are suffering from this one forecast

WisdomTree Cybersecurity Fund

Fortinet is the only cybersecurity stock that was one of the top holdings in all three ETFs.

3 Cybersecurity ETFs for 2022 -- One Has Easily Beaten the Market

Why Eric Fry is Buying

Palo Alto Networks' Q4 EPS report yesterday, and the 3-1 stock split announcement, is proof positive that there is no recession in the cybersecurity sector. Businesses, governments, and consumers are at risk from cyber-security attacks from rogue state actors in Russia, China, Iran, and North Korea.

HACK: No Recession In Cybersecurity

Cybersecurity companies are the premier solution for cybersecurity threats that continue to grow in number and monetary severity. So far this year, cyberattacks across the globe have been rampant, with no signs of slowing down.

Global Cyberattacks: Severity, Growth, And A Call For Cybersecurity

Global X Cybersecurity ETF

iShares Cybersecurity and Tech ETF

Vanguard Information Technology ETF

Technology Select Sector SPDR Fund

It's been a rough year for technology-focused equity strategies as investors rotated away from the potentially faster-growing sector amid a rising rate environment. Indeed, popular sector ETFs like the Vanguard Information Technology ETF (VGT) and the Technology Select Sector SPDR Fund (XLK) were down more than 20%.

Cyber ETFs Popular as Advisors Look Long-Term

HACK provides exposure to companies providing cyber security solutions that include hardware, software, and services. Investors have been drawn to cybersecurity stocks in recent months, bidding their prices to lofty valuations in an effort to profit from the industry's robust tailwinds.

HACK: Exploring The Risks And Benefits Of Investing In Cybersecurity

Global X Autonomous & Electric Vehicles ETF

iShares Self-Driving EV and Tech ETF

BlackRock has become the latest firm to launch a blockchain-themed ETF, the iShares Blockchain and Tech ETF (NYSE Arca: IBLC), as interest in Crypto has prompted a wave of new assets for investors to explore. Discussing this and more further on this week's ETF Report is ETF Trends' head of research, Todd Rosenbluth, who has plenty [.

Yahoo Finance: Todd Rosenbluth Talks BlackRock & Thematic ETFs

ARK Web x.0 ETF

Amplify Transformational Data Sharing ETF

Global X Robotics & Artificial Intelligence ETF

First Trust Dow Jones Internet Index Fund

First Trust Nasdaq Artificial Intelligence & Robotics ETF

VanEck Vectors Semiconductor ETF

iShares PHLX Semiconductor ETF

Let's take a look at some prominent technology areas that are worth buying the dips on expectations of favorable trends.

5 Top Tech Areas That Deserve Your Attention Now

Teucrium Corn Fund

Invesco DB Oil Fund

SPDR Gold Trust

iShares Gold Trust

iShares U.S. Aerospace & Defense ETF

Lockheed Martin

United States Oil Fund LP

Vanguard Energy ETF

Teucrium Wheat Fund

SPDR S&P Aerospace & Defense ETF

The raging war between Russia and Ukraine has brought some ETF areas into the limelight as they are seeing some gains since the attack.

ETF Areas in Focus Amid the Russia-Ukraine Crisis

Apple

Amazon

Enterprise Products Partners

George Ball, a renowned Wall Street Titan, was interviewed by Seeking Alpha to provide his insights into recent market volatility for investing.

4 Key Insights From Wall Street Legend George Ball

Hackers on both sides of the Russia-Ukraine war are highlighting the need for enhanced cybersecurity all across society. The post War in Ukraine Spotlights This Growing and Critical Industry appeared first on InvestorPlace.

War in Ukraine Spotlights This Growing and Critical Industry

Cybersecurity stocks are still beaten-up, but their fundamentals keep improving. Now's the time to pounce to see massive long-term gains.

Cybersecurity Stocks Are Entering a “Golden Age” in 2022

We could see surge in cybersecurity attacks as the war escalates.

Why You Should Buy Cybersecurity Stocks & ETFs Now

In the 21st Century, it is clear that any individual, business, corporation, or country requires cybersecurity protection.

The HACK ETF: Cybersecurity Should Be Considered Part Of The Defense Sector

NortonLifeLock

ASYMshares ASYMmetric 500 ETF

TrueShares Low Volatility Equity Income ETF

First Trust US Equity Dividend Select ETF

Decline sparked by a U.K. regulator's investigation into a planned merger.

NortonLifeLock Drops 12%; 206 ETFs Affected

iShares North American Tech-Software ETF

Cybersecurity stocks have received a shot in the arm after Russian President Vladimir Putin invaded Ukraine and made sinister and vague threats against those who would help the country, but analysts are split on whether it was deserved and will last.

The Ratings Game: Cybersecurity stocks have been boosted by Russia threat, but for how long?

Invesco Dynamic Energy Exploration & Production ETF

The raging war between Russia and Ukraine has opened up some investment opportunities as we see a rally in several ETF areas since the beginning of the war.

6 ETF Areas Rallying Amid the Russia-Ukraine Crisis

Tech stocks, like the rest of the broader market, have seen their fair share of ups and downs since Russia's invasion of Ukraine at the end of February. But for one part of the technology sector — cybersecurity -— it's been a roaring bull market for the past few weeks.

Cybersecurity: A rare bright spot in the stock market may be set to fizzle out

The Russia-Ukraine war has emphasized that modern warfare is cyber warfare. And that means cybersecurity stocks are set for huge gains.

Cybersecurity Stocks Are the Best to Buy Amid the Russo-Ukrainian Crisis

ProShares Bitcoin Strategy ETF

First Trust Nasdaq Bank ETF

iShares U.S. Insurance ETF

Invesco KBW Bank ETF

SPDR S&P Insurance ETF

United States Commodity Index Fund

Vaneck Bitcoin Strategy ETF

Let's take a look at some ETF areas that investors will like to consider amid the war between Russia and Ukraine in March.

ETF Areas to Consider for Investing in March Amid War Concerns

CyberArk Software

First Trust Natural Gas ETF

Invesco Dynamic Leisure and Entertainment ETF

For investors, these are the best ETFs to buy to benefit from strong, current trends, including a travel rebound and surges in defense spending. The post The 5 Best ETFs to Buy for March 2022 appeared first on InvestorPlace.

The 5 Best ETFs to Buy for March 2022

Rising possibility of cyberattacks by Russia has sent these stocks higher

Why Cybersecurity ETFs are Rising amid Russia-Ukraine Crisis

Cyber security ETFs may gain strength due to the Russian incursion into Ukraine.

News for ETFMG Prime Cyber Security ETF ETF (HACK)