First Trust NASDAQ Cybersecurity ETF
Price
$100.79
YTD
—
Expense
0.60%
Yield
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Best Cybersecurity ETFs for 2026
Discover the best cybersecurity ETFs for 2026. Compare CIBR, HACK, BUG and other funds investing in the $300B+ cybersecurity industry.
Complete Guide to Cybersecurity ETFs in 2026
Cybersecurity has become one of the most compelling long-term investment themes, with global spending projected to exceed $300 billion by 2028. The rise of AI-powered attacks, increasing regulatory requirements, the shift to cloud computing, and the growing frequency of ransomware attacks have made cybersecurity spending non-discretionary for businesses worldwide.
Why Cybersecurity Is a Must-Own Theme
Cybercrime damages are projected to reach $10.5 trillion annually by 2025, making it the third-largest "economy" in the world after the US and China. Every organization - from Fortune 500 companies to local governments - must invest in cybersecurity regardless of economic conditions. This creates a recession-resistant growth profile that few other sectors can match.
AI is accelerating both attacks and defenses, creating an arms race that drives continuous spending increases. Companies like CrowdStrike, Palo Alto Networks, and Fortinet are at the forefront of AI-powered security solutions.
Top Cybersecurity ETFs
CIBR (First Trust Nasdaq Cybersecurity ETF): The largest cybersecurity ETF with $6+ billion in assets. CIBR tracks the Nasdaq CTA Cybersecurity Index, holding approximately 35 cybersecurity companies. Top holdings include CrowdStrike, Palo Alto Networks, Broadcom, and Cisco Systems.
HACK (ETFMG Prime Cyber Security ETF): One of the first cybersecurity ETFs (launched 2014), HACK provides broad exposure to approximately 60 cybersecurity companies, including both pure-play security firms and diversified tech companies with significant security operations.
BUG (Global X Cybersecurity ETF): A more concentrated cybersecurity ETF from Global X, focusing on approximately 25 pure-play cybersecurity companies. BUG tends to have higher beta and more concentrated exposure than CIBR or HACK.
Key Holdings Analysis
CrowdStrike (CRWD): The leader in cloud-native endpoint security, using AI to detect and prevent cyber threats. CrowdStrike's Falcon platform protects over 50% of Fortune 500 companies.
Palo Alto Networks (PANW): The largest pure-play cybersecurity company by revenue, offering a comprehensive platform spanning network security, cloud security, and security operations.
Fortinet (FTNT): A leader in network security appliances with a growing cloud security business. Known for its FortiGate firewalls and integrated security platform.
🏆 Winner — #1 pick
ETFMG Prime Cyber Security ETF
Price
$118.58
YTD
—
Expense
0.60%
Yield
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Frequently asked questions
Why invest in cybersecurity ETFs?
Cybersecurity is a recession-resistant growth theme due to increasing cybercrime, regulatory requirements, cloud adoption, and AI-driven attacks and defenses, with global spending projected to exceed $300 billion by 2028.
What are the top cybersecurity ETFs?
CIBR (First Trust Nasdaq Cybersecurity ETF), HACK (ETFMG Prime Cyber Security ETF), and BUG (Global X Cybersecurity ETF) are the leading options.
What does CIBR track?
CIBR tracks the Nasdaq CTA Cybersecurity Index, holding around 35 cybersecurity companies including CrowdStrike, Palo Alto Networks, Broadcom, and Cisco Systems.
What is HACK ETF?
HACK — ETFMG Prime Cyber Security ETF provides broad exposure to approximately 60 cybersecurity companies, including pure-play and diversified tech firms with security operations.
What is BUG ETF?
BUG — Global X Cybersecurity ETF focuses on roughly 25 pure-play cybersecurity companies, offering higher beta and more concentrated exposure than CIBR or HACK.
Who are the key holdings in cybersecurity ETFs?
CrowdStrike, Palo Alto Networks, Fortinet, Zscaler, and other leading cybersecurity companies are top holdings in CIBR, HACK, and BUG.
What is CrowdStrike?
CrowdStrike (CRWD) is a cloud-native endpoint security leader using AI to detect and prevent threats, with its Falcon platform protecting over 50% of Fortune 500 companies.
What is Palo Alto Networks?
Palo Alto Networks (PANW) is the largest pure-play cybersecurity company by revenue, offering network, cloud, and security operations solutions.
What is Fortinet?
Fortinet (FTNT) is a network security leader known for FortiGate firewalls and integrated cloud security platforms.
Which cybersecurity ETF is the #1 pick?
CIBR — First Trust NASDAQ Cybersecurity ETF is the top pick due to broad exposure to leading cybersecurity companies and $6+ billion in assets.
What is the expense ratio of CIBR?
CIBR has an expense ratio of 0.6%.
What is the expense ratio of HACK?
HACK also has an expense ratio of 0.6%.
How many companies does CIBR hold?
CIBR holds approximately 35 cybersecurity companies.
How many companies does HACK hold?
HACK holds roughly 60 cybersecurity companies.
Is cybersecurity a growing investment theme?
Yes, cybersecurity spending is increasing due to growing AI-driven threats, ransomware, regulatory requirements, and global digitization.
Which ETF provides the most concentrated exposure?
BUG — Global X Cybersecurity ETF is the most concentrated with around 25 pure-play cybersecurity companies.
Are cybersecurity ETFs volatile?
Yes, cybersecurity ETFs can be volatile due to their tech-heavy holdings and growth-oriented nature.
What sectors do cybersecurity ETFs focus on?
These ETFs focus on companies providing endpoint security, network security, cloud security, and security software and services.
Can investors gain exposure to AI-powered security through these ETFs?
Yes, leading holdings like CrowdStrike, Palo Alto Networks, and Fortinet use AI in threat detection and security management.
Which ETF is considered the pioneer in cybersecurity ETFs?
HACK — ETFMG Prime Cyber Security ETF, launched in 2014, is the original cybersecurity ETF.
Are cybersecurity ETFs suitable for long-term investors?
Yes, given the secular growth in cybersecurity demand and non-discretionary spending, they can be suitable for long-term growth-oriented investors.
Do cybersecurity ETFs pay dividends?
Most cybersecurity ETFs focus on growth and generally offer minimal to no dividends.
What is the AUM of HACK?
HACK has an AUM of approximately $2 billion.
Which ETF is recommended for broad market cybersecurity exposure?
CIBR is recommended for broad market exposure to leading cybersecurity companies.
Which ETF is best for concentrated cybersecurity plays?
BUG is ideal for investors seeking concentrated exposure to pure-play cybersecurity companies.
How does AI impact cybersecurity investments?
AI increases both attack sophistication and defense capabilities, driving continuous spending on cybersecurity solutions and creating investment growth opportunities.
Why is cybersecurity considered recession-resistant?
Organizations must invest in cybersecurity regardless of economic conditions, making spending largely non-discretionary.
What is the main advantage of investing via ETFs?
ETFs provide diversified, regulated, and easy-to-access exposure to cybersecurity companies without buying individual stocks.
Which companies are included in CIBR’s top holdings?
CrowdStrike, Palo Alto Networks, Fortinet, Zscaler, and Broadcom are among CIBR’s top holdings.
Which ETF is recommended for a large-cap diversified approach?
CIBR is recommended for a diversified, large-cap cybersecurity exposure.
Which ETF is best for a high-beta, concentrated growth strategy?
BUG is best suited for high-beta, concentrated cybersecurity growth exposure.