The Betashares Global Cybersecurity ETF (ASX: HACK) gives Australians exposure to the global cybersecurity sector — the companies that protect networks, data and devices from an ever-growing wave of cyber threats. As cyberattacks proliferate and security budgets rise, cybersecurity has become one of the most talked-about long-term Investment themes, and HACK is the main way to access it on the ASX.

In September 2026, cybersecurity spending continues to grow, but HACK’s recent journey has been anything but smooth: a sharp drop earlier in the year followed by a strong recovery. This article explains how HACK works, why it is in focus, and the catalysts and risks that could shape it from here.

What is the HACK ETF?

HACK is a passive thematic ETF issued by Betashares. It aims to track the Nasdaq CTA Cybersecurity Index, before fees and expenses — a portfolio of global companies operating in the cybersecurity sector, spanning the building, implementation and management of security for networks, computers and devices. The fund holds around 48 companies, charges management costs of approximately 0.67% per annum, is currency-unhedged, and launched in 2016. It gives ASX investors exposure to a sector heavily under-represented on the local market.

As a single-theme sector fund, HACK is more concentrated and can behave very differently from a broad-market ETF. Its portfolio includes global cybersecurity leaders — pure-play security firms alongside larger technology companies with significant security businesses. Because it focuses on one theme, its performance is tied to the fortunes of the cybersecurity sector rather than the broad market, which can mean both stronger gains when the theme is in favour and sharper falls when it is not.

What is driving interest now?

The structural driver is relentless growth in cybersecurity spending. As cyberattacks, ransomware and data breaches proliferate, organisations are increasing their security budgets, and enterprise security spending is often considered relatively non-discretionary — companies are reluctant to cut it even in tougher times. That gives the sector a structural tailwind and has made HACK a popular way to express a long-term thematic view.

The near-term picture, however, has been volatile. HACK fell sharply in early 2026 — reaching a 52-week low around A$11.33 in April — as the technology sector came under pressure, before rebounding strongly to trade well above that level by mid-year. That round trip illustrates how a concentrated thematic fund can swing with technology sentiment and market conditions, even when the underlying spending trend remains intact. The direction of technology stocks, US interest rates and the Australian dollar all feed into returns.

Portfolio and holdings

HACK’s portfolio is concentrated in the global cybersecurity sector, with around 48 holdings. Independent data has shown its largest positions including pure-play security leaders such as CrowdStrike, Palo Alto Networks and Fortinet, alongside larger technology companies with significant security operations such as Cisco and Broadcom, with the top holdings each carrying a meaningful weight of around 7% to 11%.

This concentration in a single theme is the fund’s defining characteristic. Because it holds a relatively focused basket of cybersecurity companies, HACK’s returns depend heavily on the sector and on its largest holdings. Cybersecurity has historically shown some resilience during technology drawdowns, because security budgets are less discretionary than other IT spending, but the fund remains a concentrated, higher-risk thematic exposure rather than a diversified core holding.

Catalysts to watch

Several factors could influence HACK in the coming months: the pace of global cybersecurity spending and enterprise security budgets; the Earnings of its largest holdings; the direction of technology stocks and US interest rates, given the sector’s rate sensitivity; major cyberattacks or breaches that raise security demand; and the AUD/USD Exchange Rate for unhedged returns.

Risks

HACK carries the risks of a concentrated thematic fund. Sector-concentration and single-theme risk mean its fortunes depend heavily on cybersecurity, and it can fall sharply when the theme or technology broadly is out of favour, as early 2026 showed. Single-stock concentration in its largest holdings is a feature. Currency risk is unhedged. Interest-rate risk affects the growth-oriented holdings. Valuation risk, Market Risk and the higher fee typical of thematic funds all apply. HACK is best viewed as a satellite thematic holding rather than a diversified core position.

Outlook

HACK offers Australians targeted exposure to the global cybersecurity theme, underpinned by structural growth in security spending, though its recent history shows how volatile that exposure can be. Its near-term fortunes rest on cybersecurity spending, technology sentiment and interest rates. Investors may be watching security-sector earnings, technology stocks and the Australian dollar for direction. The outlook may depend on whether the structural growth in cybersecurity spending continues to translate into returns, and investors should weigh the theme’s promise against the concentration and Volatility the fund has demonstrated.