Cyber security exchange traded fund PureFunds ISE Cyber Security (NYSE: HACK) is seeing staggering growth, but what makes it even more amazing is that it is largely a one-man show at the moment. Thirty-year-old Andrew Chanin has built up PureFunds to its whopping 1.2 billion dollar levels practically single-handedly.
Running and growing an exchange traded fund is no walk in the park. Negotiating the tricky territory of myriad regulations and dealing with multiple contractors often takes an army, but Chanin has gone at it alone for most of the journey so far. Co-founder of PureFunds, Paul Zimnisky left the fold in the months following the launch. While he is currently looking at expanding his team as he builds scale, what PureFunds has accomplished so far is no mean feat. And no one knows this better than Andrew Chanin himself, having achieved less than stellar results with his own earlier ETFs. He comes with a background of working in brokerage firms like Kellogg as well as at Cohen Capital Group.
What makes it even more commendable is that he has brought out the first data security ETF, with no precedent in the market. Launched last November, it garnered the interest of the investor community raking in well over a billion and peaking at 1.4 billion dollars in July.
Shot in the arm from high profile hacking
Cyber security, data protection and hacking came front and center worldwide circa 2012, but what really gave Chanin’s venture a boost was the Sony (NYSE: SNE) Entertainment Pictures hack that came only days after the launch of PureFunds ISE Cyber Security in November 2014. Back then, the International Securities Exchange was the only one to classify computer security.
Data vulnerability is becoming a critical issue with billions invested worldwide to prevent breaches that could potentially tarnish a brand’s image and cost them more in losses. In a short eight months since launch, the exchange traded fund lapped up its first billion and then some, to become the fastest growing ETF of all time.
What lies ahead for PureFunds
Bolstered by support from the ISE, Andrew Chanin went ahead with launching BDAT and IPAY, two more exchange traded funds. Tax advantages and lower fees have made ETFs an attractive alternative to mutual funds, and at last count there were over 6500 ETFs worldwide.
While PureFunds took a knock on the back of a topple of technology stocks in the market, analysts remain extremely optimistic on the outlook for this particular ETF. Cyber security is, and will remain a hot area in the years to come and Chanin is set to back that trend.