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Cybersecurity ETF (HACK) Hits New 52-Week High
For investors seeking momentum, ETFMG Prime Cyber Security ETF (HACK - Free Report) 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.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
HACK in Focus
The underlying Prime Cyber Defense Index utilizes a rules-based investment methodology to select a diverse group of companies actively involved in the cyber security industry. The product charges 60 bps in annual fees (See: all Technology ETFs).
Why the Move?
Given the recent surge in the adoption of AI technology, the need for cybersecurity becomes increasingly evident. Cyberattacks are on the rise as an increasing number of companies across various sectors are integrating generative AI and other aspects of the technology into their daily operations. This trend is providing significant support to the cybersecurity sector. Increasing acquisition activity in the sector also benefits the fund.
New federal government initiatives could also support the fund.
More Gains Ahead?
Currently, HACK might continue its strong performance in the near term, with a positive weighted alpha of 28.70, which gives cues of a further rally.