ETF VENTURES Cyber Security - International Securities Exchange

ETF VENTURES
Cyber Security
ISE Cyber Security® UCITS Index (HUR)
DESCRIPTION
The ISE Cyber Security® UCITS Index provides a benchmark for investors interested in tracking
companies actively involved in providing cyber security technology and services.
A benchmark
of companies
involved in
providing
cyber security
technology and
services.
The companies in this index are either those which work to develop hardware and/or software that
safeguards access to files, websites and networks, both locally and from external origins or those
that utilize these tools to provide consulting and/or cyber security services to their clients.
METHODOLOGY
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 quarterly for eligibility,
and the weights are re-set accordingly.
HISTORICAL INDEX LEVELS FOR HUR (as of 12/31/2015)
300
STATS
250
Components
33
Avg Market Cap
Dividend Yield
0.61%
Current P/E,
Positive Earnings
26.05
200
Index Level
$8.46 Billion
150
100
Price/Sales
2.42
50
Cashflow/Share
11.60
0
2011
2012
2013
2014
2015
ISE Cyber Security® UCITS Index
ISE Cyber Security® UCITS Index
CLOSING PRICE LEVEL
TOTAL RETURN PRICE LEVEL
COMPONENT SELECTION
The following steps are taken to select the initial components for
the ISE Cyber Security® UCITS Index:
1 Establish total population of exchange listed common shares
and depository receipts for companies involved in the cyber
security industry.
2 Categorize and remove companies that do not meet the
Component Eligibility Requirements.
3 If a component has multiple share classes, include the most
liquid issue for that company (using average daily value
traded during the prior three-month period) and remove the
remaining classes.
COMPONENTS (as of 12/31/2015)
Ticker
Name
Weight %
BLOX UN
INFOBLOX INC
4.31%
4704 JT
TREND MICRO INC
4.22%
PFPT UQ
PROOFPOINT INC
4.03%
RDWR UW
RADWARE LTD
4.02%
SAIC UN
SAIC INC
4.01%
053800 KQ
AHNLAB INC
3.99%
PANW UN
PALO ALTO NETWORKS INC
3.86%
CHKP UW
CHECK POINT SOFTWARE TECH L ORD
3.85%
4 Infrastructure and service provider are market cap weighted
in aggregate.
3692 JT
FFRI INC
3.83%
5 Adjust each component’s weighting to an equal weight
within its sector’s aggregate weight.
SPLK UW
SPLUNK INC
3.80%
QLYS UW
QUALYS INC
3.78%
SYMC UW
SYMANTEC CORP
3.76%
CSCO UW
CISCO SYSTEMS INC
3.66%
SOPH LN
SOPHOS GROUP PLC
3.64%
CUDA UN
BARRACUDA NETWORKS INC
3.61%
IMPV UN
IMPERVA INC
3.55%
S
et investment threshold to $25 million
JNPR UN
JUNIPER NETWORKS INC
3.53%
7 Determine component weighting limits given the respective
criteria.
VDSI UR
VASCO DATA SECURITY INTL
3.27%
CYBR UW
CYBERARK SOFTWARE
3.21%
8 If calculated values are less than the percentage threshold
then the weight of component does not need to be adjusted.
AVG UN
AVG TECHNOLOGIES
3.20%
IL UN
INTRALINKS HOLDINGS INC
2.83%
FTNT UW
FORTINET INC
2.73%
FEYE UW
FIREEYE
2.45%
 Take the aggregate difference between the initial and
adjusted weights of those components that fail the threshold
test and distribute evenly among components passing the
threshold test.
RPD UQ
RAPID7 INC
2.41%
KEYW UW
KEYW HOLDING CORP/THE
2.02%
LDOS UN
LEIDOS HOLDINGS INC
1.83%
 Any component with a final weight >5% as a result of an
upward revision due to the liquidity optimization process will
be capped at 4.75%.
VRSN UW
VERISIGN INC
1.73%
ZIXI UW
ZIX CORP
1.71%
BAH UN
BOOZ ALLEN HAMILTON HOLDING CORP
1.66%
MANT UW
MANTECH INTERNATIONAL CORP-A
1.62%
ABT CT
ABSOLUTE SOFTWARE CORPORATION
1.35%
GTO NA
GEMALTO
1.30%
FFIV UW
F5 NETWORKS INC
1.21%
6 Set liquidity thresholds:
C
alculate three month average daily value traded for each
component based on daily closing price and number of
shares traded
S
et percentage of three month average daily value traded
threshold to 25%
9 If calculated values are greater than the percentage
thresholds then assign new component weight equal to the
percentage threshold.
 Repeat steps 9–11 until all components pass liquidity
threshold tests.
Note that the index portfolio does not have a fixed number of
stocks and attempts to include every stock in the industry that
meets the eligibility requirements contained herein.
QUESTIONS?
online:
www.ise.com/etfventures
email: [email protected]
The ISE globe logo, International Securities Exchange®, ISE®, and ISE Cyber Security® UCITS Index are trademarks of the International Securities Exchange, LLC. The ISE Sector
index trademarks are the property of the International Securities Exchange, LLC. All other trademarks and service marks are the property of their respective owners. Copyright ©2016
International Securities Exchange, LLC. All rights reserved. All index values prior to 8/26/15 represent back-tested data. [ETF-HUR 0216]