Factor Advisors, a subsidiary of ETF Managers Group, in partnership with PureFunds® and ISE ETF Ventures today announced the PureFunds ISE Cyber Security ETF™ (HACK), which offers investors exposure to the emerging cyber security industry, has surpassed $1 billion in assets under management (AUM). The exchange-traded fund (ETF) eclipsed this important milestone only seven months after its inception.
“Due to the steady stream of data breaches across the globe, cyber security remains a top-of-mind concern for corporate entities, governments, and individuals,” said Andrew Chanin, CEO of PureFunds®. “At PureFunds, we believe that the increased frequency and sophistication of high-profile cyber security breaches, along with public and private sector requirements to practice safe, digital recordkeeping, means exciting growth potential for the industry.”
HACK launched in November 2014 and tracks the ISE Cyber Security IndexTM (HXR). As of May 31, 2015, the stated per share NAV has appreciated 15.30%, since inception (11-12-14). As of March 31, 2015, the stated NAV has increased 11.75% and market price has increased 11.88% since inception. The expense ratio is 0.75%. Performance data quoted represents past performance and does not guarantee future results. The investment return principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher that the performance quoted. All performance is historical and includes reinvestment of dividends and capital gains. Performance data to the most recent month end may be obtained by calling 877-756-PURE.
“The PureFunds ISE Cyber Security ETF’s success is a strong example of how our partner firms have collaborated to create a product that can deliver value to an investment portfolio,” said Kris Monaco, Head of ISE ETF Ventures. “We’re very proud of the results so far, and we will continue designing indexes that provide investors with an opportunity to invest in exchange-traded products (ETPs) representing emerging trends and industries.”
As an innovator of ETF concepts, PureFunds® strives to provide the market with easy access to in-demand niche sectors through Pure-Play ETFs. We are a New York based research and business management firm, serving as the Manager to the PureFunds ISE Cyber Security ETF and the PureFunds ISE Junior Silver (Small Cap Miners/Explorers) ETF. We aim to provide investors with tactical ETFs that may offer attractive investment opportunities in sectors that traditionally have been difficult to invest in.
About Factor Advisors: Factor Advisors LLC is a wholly owned subsidiary of Exchange Traded Managers Group LLC (ETF Managers Group), a leading Exchange Traded Funds (ETF) private label services company. ETF Managers Group offers a full range of ETF product services to the asset management community including commodity pool ETPs as well as both active and passive ETF funds. The services provided include product operations, regulatory, financial and compliance management. ETF Managers Group offers active marketing and dedicated wholesale services for all ETF product types.
About ISE ETF Ventures
The ISE ETF Ventures team is dedicated to creating and supporting innovative indexes that track growing industries, emerging technologies and markets, and packaged trading strategies. Their index design expertise includes a diverse range of asset classes and instrument types including global equities, fixed income, currencies, futures and options. ISE ETF Ventures partners with issuers to launch unique exchange traded products (ETPs) such as exchange traded funds (ETFs), exchange traded notes (ETNs) and other similar product types. They also provide capital for the start-up and ongoing backstopping of new ETPs. Partners are able to leverage ISE ETF Ventures’ global experience and broad network of industry participants in order to grow their ETP presence as well as reduce risk and increase product issuance.
ISE ETF Ventures is operated by ISE Holdings, which is a member of Eurex Group, and together they operate one of the largest transatlantic derivatives marketplaces. Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's summary and statutory prospectuses, which may be obtained by calling 877-756-PURE (877-756-7873) or visiting www.PureETFs.com.Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual issuer volatility than a diversified fund. Funds that are less diversified across countries or geographic regions are generally riskier than more geographically diversified funds and risks associated with such countries or geographic regions may negatively affect a Fund. Investments in small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. The Fund invests in some economies that are heavily dependent upon trading with key partners. Any reduction in this trading may cause an adverse impact on the economy in which the Fund invests. The Fund’s return may not match or achieve a high degree of correlation with the return of the ISE Cyber Security™ Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the ISE Cyber Security™ Index.
The ISE Cyber Security™ Index provides a benchmark for investors interested in tracking companies actively involved in providing cyber security technology and services. The Index uses a market capitalization weighted allocation across the infrastructure provider and service provider categorizations as well as an equal weighted allocation methodology for all components within each sector allocation. Index components are reviewed semi-annually for eligibility, and the weights are reset accordingly. The Index was created and is maintained by ISE ETF Ventures. An investment cannot be made directly in an index.
Factor Advisors, LLC serves as the investment adviser and Penserra Capital Management LLC serves as sub-advisor to the fund. The Funds are distributed by Quasar Distributors, LLC, which is not affiliated with Factor Advisors, LLC or any of its affiliates.