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Should You Invest in the First Trust NASDAQ Cybersecurity ETF (CIBR)?
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Launched on 07/06/2015, the First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $728.18 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. CIBR seeks to match the performance of the Nasdaq CTA Cybersecurity Index before fees and expenses.
The Nasdaq CTA Cybersecurity Index tracks the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.10%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Vmware, Inc. accounts for about 6.31% of total assets, followed by Palo Alto Networks, Inc. (PANW - Free Report) and Symantec Corporation .
The top 10 holdings account for about 45.81% of total assets under management.
Performance and Risk
So far this year, CIBR has gained about 16.23%, and is up about 25.27% in the last one year (as of 07/30/2018). During this past 52-week period, the fund has traded between $20.63 and $27.81.
The ETF has a beta of 0.99 and standard deviation of 17.43% for the trailing three-year period, making it a medium risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the First Trust NASDAQ Cybersecurity ETF (CIBR)?
Launched on 07/06/2015, the First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $728.18 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. CIBR seeks to match the performance of the Nasdaq CTA Cybersecurity Index before fees and expenses.
The Nasdaq CTA Cybersecurity Index tracks the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.10%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Vmware, Inc. accounts for about 6.31% of total assets, followed by Palo Alto Networks, Inc. (PANW - Free Report) and Symantec Corporation .
The top 10 holdings account for about 45.81% of total assets under management.
Performance and Risk
So far this year, CIBR has gained about 16.23%, and is up about 25.27% in the last one year (as of 07/30/2018). During this past 52-week period, the fund has traded between $20.63 and $27.81.
The ETF has a beta of 0.99 and standard deviation of 17.43% for the trailing three-year period, making it a medium risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.