When your cell phone suddenly freezes on your way to grab your morning coffee, it may not be just a technical glitch, but the warning sign of the cyber thievery of the new age.
The CrowdStrike 2025 Global Threat Report found that:
- Vishing (short for “voice phishing”) attacks have increased 442%
- Close to 80% of intrusions no longer sneak in with any malware, and
- China-associated hackers are upping their game with a 150% jump in activity.
For individual investors who want to ride this cyber mayhem, cybersecurity ETFs provide a useful and effective means to tap into the digital defense boom.
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Why Cybersecurity, Why Now?
Hackers are getting quicker and cleverer, cracking networks in 51 seconds or less, frequently without malware. Instead, they use AI-powered phishing emails, take advantage of misconfigured clouds, and steal passwords. It’s digital jiu-jitsu, and businesses are scrambling to protect themselves.
This explosion of advanced attacks has translated into a multi-billion-dollar cybersecurity boom, and investors are sitting up and taking notice.
The ETFs That Let You Invest In Digital Defense
If selecting individual cybersecurity stocks seems intimidating, these ETFs provide a diversified method to ride the wave:
First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR)
- Assets under management: ~$10 billion
- Top holdings: Palo Alto Networks (NASDAQ:PANW), Cisco (NASDAQ:CSCO), Fortinet (NASDAQ:FTNT), CrowdStrike (NASDAQ:CRWD)
- Expense ratio: 0.59%
- CIBR is the biggest and most liquid cybersecurity ETF on the market. It’s based on the Nasdaq CTA Cybersecurity Index and provides exposure to pure-play cyber companies as well as larger tech giants with large, healthy security segments. It’s an excellent choice for investors looking for liquidity and a diversified, weighted basket of companies that are protecting the frontlines.
Amplify Cybersecurity ETF (NYSE:HACK)
- Assets under management: ~$2.27 billion
- Top holdings: Broadcom (NASDAQ:AVGO), Palo Alto Networks, Cisco, Crowdstrike, Fortinet, Cloudflare (NYSE:NET)
- Expense ratio: 0.60%
- HACK led the way in the space and has a slightly different methodology, it follows the ISE Cyber Security Select Index focused on revenue exposure to cybersecurity. That is to say, it frequently includes boutique players in consulting, military-grade defense, and forensic analysis. If you want more “boots-on-the-ground” exposure, HACK delivers that tactical taste.
Global X Cybersecurity ETF (NASDAQ:BUG)
- Assets under management: ~$1.14 billion
- Leading holdings: CrowdStrike, Palo Alto Networks, Zscaler (NASDAQ:ZS), Fortinet, Okta (NASDAQ:OKTA)
- Expense ratio: 0.51%
- BUG emphasizes high-growth, next-generation players and plays more towards firms focused on endpoint security, cloud-native defenses, and AI-driven threat detection. It’s slightly more volatile, but for those with a higher-risk appetite, BUG connects to the more innovative edge of the space.
Why It’s Not Too Late
While these ETFs have become increasingly popular, analysts suggest the cybersecurity trade isn’t yet crowded. Why? Because the threats are expanding at record pace.
A June report by Fortune Business Insights projects the global cybersecurity market size to grow from an estimated $193.73 billion in 2024 to $562.72 billion by 2032, realizing a CAGR of 14.3% during the period.
With data emerging as the most valuable currency and threats more sophisticated, cybersecurity is becoming one of the most defensive trades in your portfolio.
Cyber ETFs enable individual investors to ride this megatrend without the hassle of stock-picking. If you’re a conservative investor seeking stability or a tech-loving trader seeking growth, chances are there’s a cybersecurity ETF out there that’s your style.
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