🔍
UCYB Using a 2x Leverage to Invest in Cybersecurity - Greater than 25x returns? - YouTube
Channel: Adventurous Investor
[0]
U C Y B equals. Massive returns!
[4]
Why? Because today’s cyber
security firms are growing
[7]
like a virus. Their stock prices have
SKYROCKETD in the last 18 months.
[12]
And their opponents - the hackers - have only
gotten more daring, with ransomware, hacks,
[18]
and supply interruptions! This has a LOT of
investors thinking - me included - that cyber
[23]
security stocks are going to outperform most
sectors in the coming decades. And there’s
[28]
a brand new leveraged ETF that can deliver us
2-X returns on cybersecurity. I’m Skyler James,
[34]
welcome back to the channel. So what is Ultra
Cyber? And should your portfolio have it?
[39]
Look at semiconductors and the leveraged ETF
[43]
SOXL that returned 25x in the last
5 years. Cybersecurity and U C Y B
[49]
could do that same thing over the next 5 year.
So much of our data is moving to the cloud,
[55]
and how much are Amazon Web Services and Google
and Apple willing to pay to protect it? Alot.
[63]
Ultra Cyber is a straight-forward leveraged
ETF. The ULTRA designation means it offers 2-X
[70]
leverage - investors will earn twice the increase
on a positive day, and twice the decrease on a
[77]
negative one. Ultra Cyber does things a little
bit differently than other leveraged products.
[82]
Rather than hold a bundle of stocks and give us
2x the juice, Ultra Cyber from ProShares gives us
[88]
2x the returns of the FIRST TRUST Cyber ETF. if
its website is accurate, that means Ultra Cyber
[94]
literally uses a competing ETF to leverage. Maybe
it’s just the most convenient way for ProShares to
[100]
track the benchmark it hopes to deliver 2x
against? Still, not something you see every day.
[105]
So what’s the catalyst for these
stocks being strong investments? Well,
[109]
have you noticed that on days when ransomware and
hacking are in the headlines, cybersecurity stocks
[116]
jump higher? When the VMware and Solarwinds
hacks were breaking news, the Cyber ETF
[121]
jumped fourteen percent in the following weeks.
Colonial pipeline ransomware attack? Cyber jumped
[127]
four percent. And then when the FBI recovered
the bitcoin used in that pipeline attack,
[132]
Cyber again rose almost 8% in a matter
of weeks. It goes back to the old saying,
[137]
“time in the market is more important than timing
the market.” You can’t time these hacks. These
[142]
hacker headlines will become more and more common,
so get these stocks into your portfolio now.
[148]
A few facts about the UN-leveraged Cyber, since
that’s basically what Ultra Cyber is: C-I-B-R has
[156]
the largest AUM of the cybersecurity ETFs - over 4
billion investing dollars. That’s a big-time AUM,
[164]
we know the AUM leaders tend to steer the
stocks in their sector. It was the SECOND
[171]
cybersecurity ETF for investors to purchase,
launching after the HACK ETF from E-T-F-M-G.
[177]
Even without being first to market, Cyber
ended up with the most assets under management,
[182]
another big thumbs up. About FIFTY PERCENT
of the Cyber holdings are in the top ten
[187]
and annually it’s delivered 20%, for the last
five years. There are alot of things to like about
[193]
the Cyber ETF. Ultra Cyber has a higher expense
ratio, landing at 98 basis points, but otherwise
[200]
the Ultra ETF comes with all the
same perks as the unlevered ETF.
[204]
Check out these other unleveraged cybersecurity
ETFs and how they overlap with the Cyber ETF.
[211]
Just a dummy check I like to perform during ETF
analysis that’s especially important for leveraged
[217]
products. Anytime competing ETFs have an overlap
of 50% or more, it means the holdings are pretty
[223]
similar in those funds, pretty well agreed upon
by the big ETF issuers. That consensus is why
[229]
the overlap is so high. And it VALIDATES that
the ULTRA cyber ETF is giving us access to the
[235]
BEST investment choices. Ultra Cyber isn’t using
some mish-mash, foggy definition of cybersecurity.
[242]
And I’m not here to pick a SINGLE winner, I’m
here for levered exposure to the WHOLE scene.
[248]
Big-time analysts talk about the
COMPETITIVENESS of cybersecurity firms,
[252]
and how difficult it is to pick a winning horse
anyway. Why not just easy-button it with an ETF?
[259]
Ultra Cyber offers us 2x the
risk and 2x the reward of some
[263]
40 tech stocks. Run through these
names with me. Z-Scaler, Crowdstrike,
[268]
Okta, Fortinet, Cyberark, Palo Alto, Fireeye.
Like really, what’s missing here? Anything?
[275]
The Cyber ETF is all the stocks that stand to
benefit from increased enterprise spending on
[281]
cybersecurity. Ultra Cyber is looking
like a slam-dunk investment choice!
[286]
Another dummy check: how does this basket of
cybersecurity firms perform against the unlevered
[292]
Nasdaq 100 ETF, QQQ? The Q’s have outpaced Cyber
in 2021, but not over the one-year time horizon.
[301]
That’s for two reasons. The first is that the
2020 story was much more about cloud, remote work,
[308]
and data protection during the pandemic. Those
specific niches saw demand and revenue pulled
[314]
forward, that’s why Cyber outperformed the Nasdaq
in 2020. And second, remember in December of 2020,
[321]
cybersecurity stocks launched to the
moon as part of the Solarwinds and VMware
[327]
blow ups. The Unlevered Cyber went up 15% that
month alone. That’s a gain not shown in the 2021
[334]
year to date. Both great funds, but I expect
cybersecurity to outpace the Nasdaq going forward.
[341]
So look, I’m waiting for a pullback to start
accumulating Ultra Cyber. Just like I’ve been
[346]
steadily doing with Sox-L for leveraged
semi exposure. And if you aren’t convinced
[351]
about using leverage for cybersecurity, Cyber
from First Trust and WCBR from WisdomTree are
[358]
both solid, unlevered picks. Thanks for
watching and I’ll see you on the next one!
Most Recent Videos:
You can go back to the homepage right here: Homepage