ETFMG Prime Cyber Security ETF (HACK): Complete Beginner's Guide
Last updated: March 2026 • ETFMG • Cybersecurity
Expense Ratio
0.60%
AUM
$1.8B
Dividend Yield
0.20%
Inception
2014
Beginner Score
8/10
What is ETFMG Prime Cyber Security ETF?
HACK invests in companies that provide cybersecurity hardware, software, and services to protect against digital threats. It covers the full spectrum from network security to endpoint protection and cloud security solutions. As cyberattacks grow more frequent and sophisticated, this fund offers exposure to an industry with strong recurring revenue and long-term growth.
HACK is managed by ETFMG and has been available since 2014. With $1.8B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.60%, which means for every $10,000 you invest, you pay approximately $60 per year in management fees.
HACK at a Glance — Key Metrics
| Expense Ratio | 0.60% |
| Total Holdings | 60 |
| P/E Ratio | 32.5 |
| Beta | 1.05 |
| Dividend Yield | 0.20% |
| AUM | $1.8B |
| Inception Year | 2014 |
| Issuer | ETFMG |
Top 10 Holdings in HACK
HACK holds 60 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | CrowdStrike Holdings | CRWD | 7.00% |
| 2 | Palo Alto Networks | PANW | 6.00% |
| 3 | Fortinet Inc. | FTNT | 6.00% |
| 4 | Zscaler Inc. | ZS | 5.00% |
| 5 | CyberArk Software | CYBR | 4.00% |
| 6 | SentinelOne Inc. | S | 4.00% |
| 7 | Okta Inc. | OKTA | 4.00% |
| 8 | Check Point Software | CHKP | 3.50% |
| 9 | Varonis Systems | VRNS | 3.00% |
| 10 | Qualys Inc. | QLYS | 3.00% |
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HACK Performance History
Here's how HACK has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
5.00%
1 Year
15.00%
3 Year
7.00%
5 Year
11.00%
10 Year
13.00%
Beginner Suitability Score: 8/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
HACK scores 8/10 because it has very low fees, can be more volatile than the broader market, focuses on 60 selected holdings, and has been available since 2014, giving it a proven track record.
How to Buy HACK — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "HACK" — Use the search bar in your brokerage platform to find ETFMG Prime Cyber Security ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into HACK
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With HACK's expense ratio of 0.60%, a $10,000 investment would lose approximately $4,914 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of HACK
Pros
- ✓Cybersecurity spending is non-discretionary and grows regardless of economic cycles
- ✓First cybersecurity ETF with the longest track record in the category since 2014
- ✓Subscription-based business models provide recurring revenue for underlying companies
- ✓Growing regulatory requirements worldwide drive sustained demand for security products
Cons
- ✗Many holdings are high-growth companies trading at elevated price-to-sales ratios
- ✗Consolidation in the cybersecurity industry may reduce the number of investable companies
- ✗Overlap with broader technology ETFs may lead to unintended concentration
HACK vs Similar ETFs
See how HACK stacks up against similar funds:
Frequently Asked Questions
Is HACK a good ETF for beginners?▾
HACK has a Beginner Suitability Score of 8/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of HACK?▾
HACK has an expense ratio of 0.60%. This means for every $10,000 you invest, you pay approximately $60 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in HACK?▾
You can invest in HACK with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does HACK pay dividends?▾
Yes, HACK pays dividends with a current yield of approximately 0.20%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in HACK?▾
The top holdings in HACK include CrowdStrike Holdings (7.00%), Palo Alto Networks (6.00%), Fortinet Inc. (6.00%), and more. The fund holds 60 total positions, providing focused exposure to selected companies.