iShares Cybersecurity & Tech ETF

iShares Cybersecurity & Tech ETF (IHAK) is a BlackRock index fund that tracks the NYSE FactSet Global Cyber Security Index. The index holds cybersecurity hardware, software and services companies from developed and emerging markets. It caps each company at 4% when the index is rebalanced, which spreads money across about 45 holdings. Its 0.47% expense ratio is close to the 0.45% average of similar funds. Its swings have been large: it fell 25.7% in 2022.

• Over the year to Oct 27, 2026, IHAK returned +47.0%, 3rd of 8 among similar funds.
• Its 5-year annualized return was +11.2%.
• In the 2020 COVID crash it fell 28.7% and regained its old high 1.7 months after the low.
• Its worst full calendar year was 2022 (-25.8%); its best was 2020 (+51.2%).
• The deepest fall in its price history was 34.4% (Nov 9, 2021 to Oct 14, 2022), recovered by Feb 9, 2024.

As of Jul 31, 2026, the fund held 45 securities; the ten largest made up 45.07% of assets. It also reported 9.1% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $65.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +22.75%, +4.96%, -0.21%.

IHAK tracks the NYSE FactSet Global Cyber Security Index, which is run by ICE Data Indices. The index provider groups companies by what they actually sell, using FactSet's RBICS industry classification system. A company qualifies if at least 50% of its revenue comes from a cyber hardware or cyber software and services sub-industry, such as network security software or defense IT services. It also needs a float-adjusted market value of at least $300 million (float-adjusted means only shares available to trade are counted) and at least $2 million in average daily trading. Existing members can stay in the index at lower limits of $225 million and $1.5 million.

Companies are weighted by float-adjusted market value, with each one capped at 4%. The index adds and drops companies once a year and rebalances twice a year. Weights can drift above the cap between rebalances: Qualys made up 5.0% of the fund as of July 31, 2026.

BlackRock uses "representative sampling." This means the fund may not hold every stock in the index, but it aims for a portfolio with similar characteristics. At least 80% of assets go into index stocks or close equivalents. Up to 20% can go into futures, options, swaps, cash or other securities. The fund may also lend up to one-third of its assets to other investors. The 9.1% cash position reported as of July 31, 2026 appears to be mostly collateral from that lending.

• IHAK charges 0.47% a year, versus an average of 0.45% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $48 in the first year and $591 over 10 years (assuming a 5% annual return).

It holds a single narrow theme and had one-year volatility of 30.3% as of October 27, 2026, so it fits a small slice of a portfolio better than its foundation.

IHAK could add a focused stake in cybersecurity companies to a broad stock fund, but it adds almost no income. Its trailing 12-month yield was 0.06% as of October 27, 2026, and it pays twice a year. The fund launched in 2019, so it has no record from 2008. In the 2020 COVID crash it fell 28.7% and recovered by May 7, 2020. In the 2022 bear market it lost 26.8% and took 14 months to recover. Its deepest drop was 34.4%, from November 2021 to October 2022, and it took about 16 months to win that back. Anyone who had to sell shares during that stretch would have locked in losses. Costs run 0.47% a year, or $48 on $10,000 in the first year under the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

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