HACKETF

The Amplify Cybersecurity ETF (HACK) has surged 84.96% from its 52-week low, reaching a new 52-week high. The rally is driven by increased AI-related spending and growing concerns about AI-related cybersecurity threats. With a positive weighted alpha of 63.63, analysts suggest the ETF may continue its strong performance in the near term as businesses prioritize AI safety and protection against emerging threats.

Amplify ETFs is promoting its cybersecurity ETFs (HACK and HAKY) during Cybersecurity Awareness Month, noting that AI is reshaping the cybersecurity landscape. According to the World Economic Forum, 94% of survey respondents expect AI to be the most significant driver of change in cybersecurity in 2026, while 87% identified AI-related vulnerabilities as the fastest-growing cyber risk. HACK, launched in 2014, has returned 388.19% cumulatively and manages over $3.2 billion in assets, while HAKY, launched in January 2026, combines cybersecurity exposure with a covered call strategy.

Cybersecurity is positioned as a defensive yet growth-oriented investment theme that benefits from AI-related risks and evolving cyber threats. The global cybersecurity market is projected to grow at 13.8% CAGR through 2034, reaching $699.39 billion. The sector offers resilience across market conditions while complementing broader AI adoption trends, making cybersecurity ETFs an attractive diversified exposure option.

The artificial intelligence sector is experiencing significant challenges including declining public perception due to job loss concerns, environmental costs, and rogue AI agent incidents. Rising Treasury yields and slowing revenue growth at major AI companies like Anthropic are fueling market volatility concerns. Investors are turning to defensive strategies through cybersecurity ETFs, broad-market index funds, and dividend-growth ETFs to navigate potential AI-led market downturns.

CNBC's Jim Cramer recommends focusing on established technology companies with multiple AI monetization pathways rather than speculative plays. He highlights Meta and Microsoft as preferred AI investments, favors cybersecurity stocks like CrowdStrike and Palo Alto Networks, and sees semiconductor opportunities in AMD, Intel, and Marvell Technology. Cramer emphasizes diversification through ETFs to mitigate valuation risks while capitalizing on AI-driven growth.