Amplify ETFs Launches Cybersecurity Income ETF, Leverages Existing HACK Exposure
Event summary
- Amplify ETFs launched the Amplify HACK Cybersecurity Covered Call ETF (HAKY) on January 21, 2026.
- HAKY aims to generate income by selling call options on the existing $2 billion Amplify Cybersecurity ETF (HACK).
- The ETF targets a 15%+ annualized option premium income and monthly distributions.
- HAKY’s expense ratio is 0.65%.
The big picture
Amplify ETFs is capitalizing on the continued growth of the cybersecurity market, projected to exceed $1 trillion by 2031, by offering investors a yield-focused strategy alongside exposure to the sector. The launch of HAKY, part of the YieldSmart™ ETF suite, signals a broader trend of ETFs incorporating sophisticated options strategies to generate income in a low-yield environment. This strategy leverages the existing popularity and AUM of the HACK ETF, reducing initial operational risk.
What we're watching
- Performance
- HAKY’s ability to consistently achieve its 15%+ annualized option premium target will depend heavily on market volatility and the underlying performance of HACK, potentially creating a wide range of outcomes.
- Competition
- The success of HAKY will be influenced by the emergence of competing cybersecurity income-focused ETFs, potentially impacting its AUM and distribution yields.
- Regulatory Risk
- Changes in regulations surrounding options trading and cybersecurity investments could impact HAKY’s strategy and profitability, requiring ongoing adaptation.
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