How did the Betashares Global Cybersecurity ETF (ASX:HACK) perform in November?

How did this high-flying ETF go on November?

| More on:
woman jumping for joy in front of lock and key

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

November wasn't a great month for ASX shares, as we can now say since December has begun. Over the month just gone, the S&P/ASX 200 Index (ASX: XJO) went from 7,323.7 points at the end of October to yesterday's closing figure of 7,256 points. That's a month-on-month drop of 0.92%. But how did the BetaShares Global Cybersecurity ETF (ASX: HACK) perform?

HACK investors might be used to some healthy market-beating performance by now. That's because the HACK exchange-traded fund (ETF) is a bit of a high flyer. As of 31 October, it has managed to return an average of 22.86% per annum since its inception in 2016, including a return of 51.49% over the 12 months to 31 October. 

So did HACK live up to this reputation over November? Let's find out.

HACK hacks November

So HACK units were asking a price of $10.41 each as we began November. Yesterday, they finished up at $$10.97 each. That's a monthly return of 5.38% or so. HACK didn't pay any dividend distributions over the month either, so that's also investors' absolute return for November. It also doesn't include the 1.4% fall HACK units have suffered so far today either (down at $10.82 a unit at the time of writing).

But even so, that 5.38% return is a meaningful outperformance of the ASX 200 and ASX shares in general. So where did this performance come from?

Well, as an ETF, HACK invests in an underlying basket of assets, in this case shares. Not just any shares, though. This ETF only selects companies from the Nasdaq Consumer Technology Association Cybersecurity Index. This index holds a concentrated portfolio of (presently) 36 shares from around the world. It aims to select companies that are leaders in the global cybersecurity space.

As of 31 November, its top holdings (and weightings) were as follows:

  1. Palo Alto Networks Inc (NYSE: PANW) with a portfolio weighting of 7%
  2. Accenture plc (NYSE: ACN) with a weighting of 6.3%
  3. Cisco Systems Inc (NASDAQ: CSCO) with a weighting of 5.5%
  4. Okta Inc (NASDAQ: OKTA) with a weighting of 4.9%
  5. Crowdstrike Holdings Inc (NASDAQ: CRWD) with a weighting of 4.7%

So is it likely that the performances of these top holdings were largely behind the BetaShares Cybersecurity ETF's stellar November? Let's check it out.

So Palo Alto indeed had an impressive month, rising just under 7.5% over November as of this morning's (our time) market close over in the US.

Accenture shares slipped 0.4% though over the same period.

Cisco shares also fell, this time by just over 2%.

Okta had a rather wild month, falling almost 13% over November by market close this morning.

And Crowdstrike came out on the bottom, delivering a nasty 23% or so fall over the month just gone.

What was behind the Global Cybersecurity ETF's stellar month?

So it was actually the performance of HACK's top holding in Palo Alto that is largely to thank for this ETF's impressive November. But HACK's month would have probably been a lot worse if it wasn't for the Australian dollar also having a very poor month. The Aussie had a shocker, falling by more than 5% against the US dollar over November. It started the month close to 75 US cents, but is currently around 71 US cents as of today.

Since most of HACK's top holdings are US companies priced in US dollars, a falling Aussie dollar makes these investments more valuable in Australian dollar terms. This would have given the BetaShares Cybersecurity ETF a huge buffer against any falls its portfolio would have suffered. 

So there you have it, the likely reasons behind the BetaShares Global Cybersecurity ETF's stellar November. HACK charges a management fee of 0.57% per annum.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS and CrowdStrike Holdings, Inc. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

A smiling woman with a satisfied look on her face lies on a rug in her home with her laptop open and a large cup on the floor nearby, gazing at the screen. researching new ETFs
ETFs

Is the Vanguard Australian Shares High Yield ETF (VHY) unit price a buy for passive income?

The VHY ETF has a reputation for big dividends. Is it a buy today?

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
ETFs

3 strong ASX ETFs to buy for simple investing

These funds make investing in quality stocks very easy.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
ETFs

What is the Vanguard Australian Shares Index ETF (VAS) dividend yield?

This fund is known for paying sizeable income. But how big?

Read more »

Man looking at an ETF diagram.
ETFs

Why these ASX ETFs could be strong buys in August

Let's see why these funds could be worth adding to a balanced investment portfolio.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Invested in ASX MOAT or other VanEck ETFs? It's dividend day!

Show us the money!

Read more »

female real estate agent stands proudly in front of house
ETFs

Can't break into the housing market? Here's 3 REIT ASX ETFs to consider

These three thematic funds focus on real estate 

Read more »

asx shares to buy and hold represented by man happily hugging himself
ETFs

5 fantastic ASX ETFs to buy and hold forever

These funds could be destined to deliver strong returns over the next decade and beyond.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
ETFs

The pros and cons of buying iShares S&P 500 ETF (IVV) units this month

Is this a good time to invest in this leading ETF?

Read more »