BUG: A Strong Cybersecurity ETF, But Here's A Superior Strategy

Summary

• Cybersecurity is crucial due to the near constant threat of cyberattacks. The consolidation & growth of digital data driven by AI is another positive catalyst for the sector.
• The simple fact is this: for governments, companies, and individuals, cybersecurity protection is no longer optional: it's mandatory.
• The Global X Cybersecurity ETF offers exposure to top cybersecurity firms like Check Point, CrowdStrike, Palo Alto, and Zscaler.
• The BUG ETF has returned 154.3% over the past 5 years, outperforming most all of its direct peers except the CIBR ETF (+175.9%).
• That said, direct investments into the stocks of the three leading cybersecurity firms (Palo Alto, CrowdStrike, and Zscaler) would have delivered superior returns.

CrowdStrike headquarters in Silicon Valley. CRWD is the #3 holding in the BUG ETF.

Sundry Photography

Serious and consequential cyberattacks on government agencies, private companies, institutions, and individual consumers are happening every day, around-the-clock, and on a nearly minute-by-minute basis. Along with the billions of investment

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VOO, QQQ, IGV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.