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.
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
- Assets under management: ~$10 billion
- Top holdings: Palo Alto Networks
(PANW ) , Cisco(CSCO ) , Fortinet(FTNT ) , CrowdStrike(CRWD ) - Expense ratio: 0.59%
Amplify Cybersecurity ETF
- Assets under management: ~$2.27 billion
- Top holdings: Broadcom
(AVGO ) , Palo Alto Networks, Cisco, Crowdstrike, Fortinet, Cloudflare(NET ) - Expense ratio: 0.60%
Global X Cybersecurity ETF
- Assets under management: ~$1.14 billion
- Leading holdings: CrowdStrike, Palo Alto Networks, Zscaler ZS, Fortinet, Okta
(OKTA ) - Expense ratio: 0.51%
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.
