Cybersecurity's New Frontier: HAKY Blends Growth with Income Potential

CHICAGO, IL – November 12, 2025

In a significant move poised to reshape investment strategies within the critical cybersecurity sector, Amplify ETFs has announced the filing for the Amplify HACK Cybersecurity Covered Call ETF (HAKY). This new offering from the innovative ETF provider aims to marry the robust growth potential of the cybersecurity industry with the stability of income generation, a strategic play that could appeal to a diverse range of investors and have broader implications for national security funding and technological resilience.

The proposed HAKY ETF seeks to achieve a dual objective: capital appreciation from its core holdings in leading cybersecurity firms and a substantial income stream derived from a covered call strategy. By primarily investing in the equity securities of the well-established Amplify Cybersecurity ETF (HACK) and subsequently selling call options against these holdings, HAKY intends to generate an annualized gross income from premiums of approximately 15% or greater. This blend represents an evolution in how investors can access a sector vital to global stability and economic competitiveness.

The Cybersecurity Income Play: A Strategic Shift

The introduction of HAKY marks a pivotal moment for income-focused investors looking to tap into the high-growth cybersecurity market. Traditionally, investments in technology, particularly in rapidly expanding sectors like cybersecurity, have been characterized by their capital appreciation potential rather than their income-generating capabilities. HAKY challenges this paradigm by offering a mechanism for regular distributions, a feature that could attract a new segment of the investor base, including retirees, institutions, and those seeking to mitigate volatility in their portfolios.

Cybersecurity, often described as the digital immune system of modern economies, continues to be a non-negotiable expenditure for governments, corporations, and individuals alike. The escalating sophistication of cyber threats—from state-sponsored attacks to ransomware campaigns—ensures a perpetual demand for advanced security solutions. This inherent resilience and growth trajectory make the sector an attractive underlying for an income-generating strategy. By aiming for a 15% or greater annualized gross income from premiums, HAKY positions itself as a compelling alternative for those seeking yield in a complex market environment, providing a new avenue for stable funding to flow into this critical technological domain.

Amplify's Strategic Vision and Market Positioning

Amplify ETFs, with over $16 billion in assets under management, has carved out a reputation as a leader in delivering breakthrough ETF solutions. The launch of HAKY is a clear extension of this strategic vision, further solidifying the firm's 'YieldSmart' suite of options-based ETFs. This lineup, which already spans cryptocurrency, commodity, and equity sectors, underscores Amplify's commitment to providing investors with innovative tools for income generation and risk management.

Christian Magoon, CEO of Amplify ETFs, emphasized this strategic continuity, stating, “The cybersecurity sector continues to represent one of the most important and resilient growth stories in technology. With the filing of HAKY, we’re building on the strong foundation of our first-to-market cybersecurity ETF, HACK, while providing enhanced income potential by applying our YieldSmart™ options-based approach.” This move not only leverages the brand recognition and established performance of the HACK ETF but also demonstrates Amplify's agility in adapting investment vehicles to evolving market demands and investor preferences for yield.

The firm's pioneering role with HACK, launched in 2014 as the first cybersecurity ETF, provides HAKY with a robust and experienced foundation. This strategic alignment ensures that HAKY benefits from a deep understanding of the cybersecurity landscape, from emerging threats to the companies at the forefront of defense technologies. The decision to integrate an income component into such a vital sector also reflects a broader industry trend towards more sophisticated, strategy-focused products designed to meet diverse investor needs.

Evolving Landscape of Cybersecurity Investment

This filing signals a broader evolution in how investors engage with high-growth sectors. The covered call ETF market has experienced significant expansion, driven by persistent demand for income-generating strategies, particularly in periods of market uncertainty or lower interest rates. While many covered call ETFs focus on broad market indices or established technology giants, HAKY's specific focus on cybersecurity offers a targeted approach that is relatively unique.

Investors seeking exposure to the crucial defense and space technology sectors often grapple with the inherent volatility of innovation-driven companies. HAKY provides a potential solution by offering a layer of income and some downside protection, albeit at the cost of capping extreme upside potential. This innovation allows for a more nuanced investment approach, enabling capital to flow into companies developing the next generation of digital defenses, while still providing a return stream for investors who prioritize cash flow.

The intersection of government investment, private sector innovation, and geopolitical realities defining the cybersecurity space makes HAKY particularly relevant for a strategic defense column. Stable investment streams can foster greater resilience and long-term growth for companies crucial to national infrastructure and security. By broadening the appeal of cybersecurity investments through income generation, HAKY could indirectly contribute to the financial health and innovation capacity of a sector that underpins global stability.

Navigating the Risks and Rewards of a Dual Strategy

While the income potential of HAKY is attractive, investors must carefully consider the inherent risks associated with both the underlying cybersecurity sector and the covered call strategy itself. Investing in narrowly focused sectors like cybersecurity means exposure to higher volatility. These companies often face intense competition, rapid technological obsolescence, and reliance on intellectual property, all of which can impact profit margins and stock performance.

Furthermore, the covered call strategy, while generating income, limits an investor's participation in significant upward movements of the underlying assets. If the cybersecurity sector experiences a strong bull run, HAKY's performance would likely lag a direct investment in HACK due to the capped upside. Conversely, while option premiums can offer some buffer against moderate declines, substantial downturns in the underlying HACK ETF would still result in capital losses for HAKY investors. The amount of income generated is also not guaranteed and will fluctuate with market prices, volatility, and interest rates.

Amplify has also noted that the fund may use FLEX Options, which can be less liquid than standardized options, potentially making it difficult to close positions at desired times and prices. Additionally, distributions from HAKY, which may include option premiums, could be considered a return of capital, reducing an investor’s cost basis and potentially leading to higher future taxes upon sale. Understanding these nuances is crucial for any investor considering HAKY as part of their portfolio, balancing the strategic advantage of income with the realities of market dynamics and sector-specific challenges.