Amplify Cybersecurity ETF

Amplify Cybersecurity ETF (HACK) is an index fund that tracks the Nasdaq ISE Cyber Security Select Index. That index holds about two dozen cybersecurity-related stocks, such as Palo Alto Networks, Broadcom, Cisco and CrowdStrike. HACK's 0.60% expense ratio is the highest of nine similar cybersecurity funds, which average 0.42%. The fund is also narrow: its 10 largest holdings made up about 52% of assets as of June 30, 2026.

• Over the year to Oct 27, 2026, HACK returned +50.8%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +15.9% and its 10-year +18.1%.
• In the 2020 COVID crash it fell 32.4% and regained its old high 2.4 months after the low.
• Its worst full calendar year was 2022 (-28.2%); its best was 2020 (+41.3%).
• The deepest fall in its price history was 42.7% (Jun 23, 2015 to Feb 9, 2016), recovered by Jan 12, 2018.

As of Jun 30, 2026, the fund held 23 securities; the ten largest made up 52.13% of assets.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $34.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +5.81%, +25.34%, +5.54%.

HACK is a passive fund. It tries to match the Nasdaq ISE Cyber Security Select Index, not beat it, and it does not move into cash when markets look shaky. Amplify Investments is the adviser and Penserra Capital Management is the sub-adviser. Nasdaq builds and maintains the index independently. The fund usually holds every index stock in about the same proportions (called replication). It may instead hold a representative sample when replication is impractical or costly. At least 80% of net assets go into index companies.

The index is drawn from a broader Nasdaq cybersecurity index. That index covers companies that make security hardware and software or that sell security services. Each candidate gets a Revenue Contribution Score: its market value multiplied by the share of its revenue that comes from cybersecurity. To qualify, a company needs a score of at least 1.25%, a market value of at least $1 billion, at least 20% of its shares freely traded, and average daily trading of at least $1 million over three months. The index had 26 stocks as of September 30, 2025.

Nasdaq reviews and rebalances the index every March, June, September and December. Changes take effect after the close on the third Friday of those months. The fund is non-diversified, which means it can put more money into a single company than a diversified fund can. The index is also concentrated in the software industry.

• HACK charges 0.6% a year, versus an average of 0.42% for the similar funds below (9th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

HACK is a narrow, volatile bet on about two dozen cybersecurity stocks, so it fits as a small add-on to a broader core rather than as a foundation.

HACK could add growth exposure to a corner of technology that broad funds hold only in small amounts. The ride has been bumpy. The fund fell 32.4% in the 2020 COVID crash but was back at its peak by May 29, 2020. In the 2022 bear market it dropped 31.2% and did not recover until January 10, 2024. Its worst calendar year was 2022, at -28.2%. Its deepest drop, 42.7% between June 2015 and February 2016, took about 23 months to recover. The fund launched in 2014, so it has no record from 2008. Someone forced to sell shares in a slump like these could lock in steep losses.

Income is minimal: the trailing yield was 0.04% as of October 27, 2026, paid once a year. Costs are high for the category. In the SEC's standard example, $10,000 invested would cost $750 in expenses over 10 years. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.