The Conversation (0)
The four largest cybersecurity ETFs are offering investors exposure to cybersecurity stocks as cyberattacks increase.
JLStock / Shutterstock
As data breaches and cyberattacks rise, cybersecurity exchange-traded funds (ETFs) offer investors a diversified option for cybersecurity investing.
The term cybersecurity originated in 1989, and today is defined as the measures taken to protect a computer or computer system against unauthorized access or cyberattack threats. Many companies focused on this market develop cybersecurity hardware and software, or offer cybersecurity services.
The number of security incidents has increased significantly in recent years, as have the costs companies must pay. In fact, according to a 2025 research report from IBM (NYSE:IBM), the average cost of a single data breach event in the US was US$10.22 million — up 9 percent over the previous year and the highest cost in the 20 years since the first report was issued.
In positive news, the global average cost for a data breach actually pulled back slightly last year at US$4.44 million compared to its all-time high of US$4.88 million in 2024. This is a change IBM attributed to AI and automation helping security teams to identify and contain these breaches more quickly, not to a falling rate of incidents.
These threats are unlikely to fade anytime soon. The forecast for the cybersecurity market is expected to remain strong with trends in the space including the threats posed by AI and quantum computing.
There are multiple ways to invest in the cybersecurity market, including cybersecurity ETFs, which offer a low-cost way to enter the space. ETF fees and expenses are typically lower than those associated with mutual funds or other types of actively managed financial instruments. What's more, these ETFs provide exposure to a basket of cybersecurity stocks, meaning investors can spread their risk around.
According to ETF.com, there are nine cybersecurity ETFs listed in the US. Here's a closer look at the top four cybersecurity ETFs by assets under management (AUM). ETFs with assets under management above US$500 million are included in this list. All numbers and figures were current as of June 16, 2026.
1. First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR)
AUM: US$13.01 billion
Expense ratio: 0.58 percent
Launched in July 2015, this ETF tracks the NASDAQ CTA Cybersecurity Index (INDEXNASDAQ:NQCYBR) and includes companies categorized by the Consumer Technology Association as cybersecurity. The ETF's 43 holdings are largely tech firms, but it also offers some exposure to the defense and aerospace sectors.
The First Trust NASDAQ Cybersecurity ETF's top holdings include Palo Alto Networks (NASDAQ:PANW) at a weight of 10.96 percent, CrowdStrike Holdings (NASDAQ:CRWD) at 10.69 percent and Fortinet (NASDAQ:FTNT) at 9.88 percent.
2. Amplify Cybersecurity ETF (ARCA:HACK)
AUM: US$2.37 billion
Expense ratio: 0.6 percent
The oldest cybersecurity ETF on this list is the Amplify Cybersecurity ETF, which began trading in November 2014. Amplify acquired its creator, ETF Managers Group, in 2024, and changed the ETF's name from the ETFMG Prime Cyber Security ETF.
The Amplify Cybersecurity ETF tracks the ISE Cyber Security Index (INDEXNASDAQ:HXR) and includes companies that either offer cybersecurity services or develop hardware or software for cybersecurity.
The cybersecurity ETF has 24 holdings in its portfolio weighted by market cap, and its top holdings by weight include Palo Alto Networks at 8.02 percent, CrowdStrike Holdings at 7.54 percent and Fortinet at 7.09 percent.
3. Global X Cybersecurity ETF (NASDAQ:BUG)
AUM: US$1.1 billion
Expense ratio: 0.51 percent
The newest ETF on this list is the Global X Cybersecurity ETF, founded in October 2019. The ETF tracks the Indxx Cybersecurity Index, with companies needing to generate at least 50 percent of their revenue from cybersecurity activities to be included.
The ETF's 32 holdings are almost exclusively categorized as technology services, setting it apart from other entries on this list, which also include electronic technology companies. Its top holdings by weight are Fortinet at a weight of 8.23 percent, Okta (NASDAQ:OKTA) at 7.49 percent and Palo Alto at 7.39 percent.
4. iShares Cybersecurity and Tech ETF (ARCA:IHAK)
AUM: US$856.92 million
Expense ratio: 0.47 percent
Last on this cybersecurity ETFs list is the iShares Cybersecurity and Tech ETF, which was founded in June 2019.
This cybersecurity ETF tracks the NYSE FactSet Global Cyber Security Index (INDEXNYSEGIS:NYFSSEC) and has a focus on companies whose business includes cybersecurity hardware, software, products or services. The inclusion of companies in both developed and emerging markets provides it with a more globally diverse portfolio of companies than other ETFs on this list.
The iShares Cybersecurity and Tech ETF has 40 holdings, including Accton Technology (TPE:2345) at a weight of 8.98 percent, BlackBerry (TSX:BB,NYSE:BB) at 6.48 percent and Fortinet at 6.23 percent.
This is an updated version of an article originally published by the Investing News Network in 2018.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
https://x.com/INN_Resource
https://www.linkedin.com/in/lauren-kelly-16a369b3
lkelly@investingnews.com
Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. With over six years as part of the INN team, Lauren is passionate about delivering accurate and informative content to investors.
INN Article Notification
Latest News
Outlook Reports world
Featured Defense And Security Investing Stocks
Browse Companies
MARKETS
COMMODITIES
CURRENCIES
Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. With over six years as part of the INN team, Lauren is passionate about delivering accurate and informative content to investors.
Learn about our editorial policies.