BUGG eft

Top 4 Holdings As of 09/15/23

Zscaler 8.97% Crowdstrike7.15%, Palo Alto 6.77%, okta 5.85%

Cheaper Bung 0.47% HACK 0.67%

and I like the stock composition over HACK.

I imagine Hack fees will drop soon.

HACK is one of my core holdings in super (~5%).

Most of you probably know it already, but it is an ASX listed ETF that invests in cybersecurity companies, predominantly listed in the USA (~85%)

Here is the link to the fact sheet

Like most "tech companies", things got a bit excited during last year and most of the multiples that these companies were trading on got quite stretched. As a result, the NAV is currently down about 16.5% this year. Over the longer term, it has been a consistent performer and there is little reason think things will change in the future - the problem these companies address only seems to be getting worse.

I seem to remember when I first looked into it that one of the interesting features is that it has a mandate not to hold > x% in any one holding, so re-balances a couple of times a year. For the life of me I cant find that information anywhere. The point here is that the dividend yield is actually quite high, as excess holdings are returned to the holder in cash rather than re-invested.

These yields can be quite lumpy as per below

At the current price, that is a yield of ~8.3%.

I subscribe to the DRP and view this as a long term holding that will hopefully continue the magic of compounding at >15%p.a. after management and administrative fees of 0.67%