Creekmur Investing 301: Case Study

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Now that we have gone over how Creekmur Wealth Advisors approaches, analyzes, and acts on investing, let’s put it all together. In this part, we will examine an individual case study; we will look at one exchange-traded fund and explain how we make an investing decision based on those three steps of analysis. Today, we will be diving deep into the ETF named CIBR!

 

Introducing the fund

CIBR, or First Trust NASDAQ Cybersecurity ETF, is an exchange-traded fund. Started in July 2015, this fund is relatively new to the market. The primary purpose of this fund is to track the NASDAQ CEA Cybersecurity IndexSM—it targets firms involved in the cybersecurity sector.

 

Analysis

Technical

Again, technical investing primarily focuses on the change in price of a given investment. The price of this ETF as of June 7, 2019 was $27.88, up .32% from the previous day’s closing price. However, looking back further into CIBR’s price history, it has been on a downturn. Because of this, the technical side would advise that this would be a good time to buy this investment, and to keep it if currently held—wait for a bigger upturn to sell it.

Fundamental

The fundamental side would look into the structure of the ETF and its model’s holdings. CIBR is heavily exposed to small-cap companies, simply due to the ‘newness’ of cybersecurity; there isn’t a cybersecurity giant just yet.

Additionally, this ETF tracks an index that involves not just computer software and networking but also aerospace and defense companies. This makes it slightly more diversified while still maintaining that steady cybersecurity focus. Looking more towards the current global political and economic situations, they’re a bit tumultuous currently. Because of that, CIBR’s heavy U.S. based weighting is a benefit for the time being.

Examining the cost basis, this ETF has a low expense ratio of .60% with no load. This means CIBR is cost efficient for our clients. Although this investment is average in risk and return, it has been an outperformer in comparison to other cybersecurity ETFs.

Overall, a fundamental analysis would likely point us towards buying this fund or holding it if we currently have it in our portfolio.

 

Wrapping up the Case Study

To conclude, this case study shows how our analysis process is actually implemented. In the case of CIBR, we do already hold this investment, so we will keep it. As for this series, congratulations! You have now completed the final reading for Creekmur Investing. If you have any questions, feel free to contact Creekmur Wealth Advisors.


Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (MAS), member of FINRA/SIPC. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. MAS and Creekmur Wealth Advisors are not affiliated entities. AEWM and Creekmur Wealth Advisors are not affiliated entities.  Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.00189667

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