Cybersecurity ETFs to Invest in

Cybersecurity is a massive challenge. According to a 2024 IBM (IBM -0.88%) report, the average cost of a data breach has risen 10% over the past year to $4.88 million, the biggest one-year jump since before the COVID-19 pandemic.

A steady migration to cloud-based IT infrastructure and a hybrid workforce that spends significant time outside the office aren't making security any easier. As a result, cybersecurity is a big and fast-growing industry.

While there is clearly an opportunity here, picking the best cybersecurity stocks can be tricky. Plus, individual cybersecurity stocks can be rather volatile, especially in the event of a data breach or other high-profile incident.

It can also be tough to know where to look. There are a lot of companies operating in this space, each with its own take on structuring a security platform. That's why investing in a cybersecurity exchange-traded fund (ETF) might make sense for you.

Top cybersecurity ETFs

Six top cybersecurity ETFs for 2025

Cybersecurity ETFs are an excellent way to get exposure to many different players in this exciting industry with a single investment. These ETFs trade just like stocks and are very easy to buy and sell, and most track benchmark indexes of cybersecurity companies.

Given the growing demand for cybersecurity, it's no surprise that there are a number of ETF options to choose from. Here are the top choices for 2025 and beyond. 

Companies 1-3

1. First Trust Nasdaq Cybersecurity ETF

With almost $10 billion in assets under management, the First Trust Nasdaq Cybersecurity ETF is by far the largest pure-play ETF in this part of the technology sector. This large financial services firm offers a variety of investment products, and its cybersecurity offering is one of the longest-tenured in the ETF world. Its inception dates back to 2015, and shares of the fund have more than tripled since then.

The First Trust Cybersecurity ETF is currently made up of 32 cybersecurity company stocks, almost all of which are listed on a U.S. stock exchange. A handful of stocks are in adjacent industries, such as aerospace and defense, where security services are prominently featured.

At the time of this writing, the top three holdings (which comprise about 27% of the fund's assets) are large tech companies Broadcom (AVGO -3.7%), Cisco Systems (CSCO -0.46%) and Palo Alto Networks (PANW -0.26%). The ETF is rebalanced quarterly and has an annual expense ratio of 0.59% ($5.90 in fees are deducted from the fund's performance each year for every $1,000 invested).

2. Amplify Cybersecurity ETF

The Amplify Cybersecurity ETF has been around since 2014 and has amassed almost $2.3 billion in assets. It is also rebalanced quarterly and has performed very well since its inception. Its annual expense ratio is 0.6%. The big difference between it and First Trust's offering, though, is that the Amplify Cybersecurity ETF is made up of just 23 stocks.

That means more portfolio concentration of top names in the industry and fewer of the fund's investments spread out into smaller companies and international investments. There is significant overlap in the portfolios, as Broadcom and Cisco Systems are the Amplify fund's two largest holdings.

3. Global X Cybersecurity ETF

A relative newcomer, the Global X Cybersecurity ETF was launched in late 2019. It has scaled to $113 billion in investor funds and has outperformed both First Trust and Amplify since it launched. This Global X ETF is one of the most concentrated on this list, with just 25 stocks, and is heavily weighted toward large cybersecurity software companies.

As of mid-2025, Zscaler (ZS -1.18%), CrowdStrike (CRWD -4.18%), and Palo Alto Networks made up almost 20% of the fund's total assets. Like the other ETFs here, Global X's product pays little in the way of dividends since the cybersecurity industry is focused primarily on growth. However, it has outperformed its peers in its short history.

Companies 4-6

4. iShares Cybersecurity and Tech ETF

Also launched in 2019, the iShares Cybersecurity and Tech ETF comes from one of the largest financial institutions in the world: BlackRock (BLK -0.22%). It comprises 33 different cybersecurity company stocks and other tech companies involved in cybersecurity, and BlackRock charges a lower annual fee than many of its peers, at just 0.47%.

This ETF also isn't the most security-focused around. While many of the large cybersecurity players are in the portfolio, it also has a smattering of cloud computing names that are in security-adjacent niches.

5. WisdomTree Cybersecurity Fund

The WisdomTree Cybersecurity Fund is the newest ETF on this list, with an inception date of January 2021. While the company has accumulated only $132 million in assets so far, it has a competitively priced offering at only 0.45% in annual fees.

This ETF is one of the most concentrated funds here and is spread across just 25 cybersecurity stocks. Cloudflare (NET -2.11%) is the largest position, while Zscaler and CrowdStrike round out the top three. The stocks within this ETF are rebalanced twice a year.

6. Vanguard Information Technology ETF

Vanguard, whose founder, Jack Bogle, invented the index fund in 1976, doesn't have a specific ETF solely focused on cybersecurity. However, the Vanguard Information Technology ETF is worth mentioning. It is a broad-based index of the U.S. technology sector and is full of cybersecurity companies and other large businesses involved in security in some form.

With an annual expense ratio of just 0.09% and 319 total holdings, the Vanguard Information Technology ETF is a great way for investors to get passive exposure to the development of cybersecurity, along with other growth trends in technology, such as cloud computing and semiconductor designers. The fund has been around since 2004 and has averaged 13.7% annually in total returns.

Pros and cons

Pros and cons of investing in cybersecurity ETFs

Like most investments, there are pros and cons of buying cybersecurity ETFs in your portfolio. Here are a few of the benefits and potential drawbacks:

Pros:

• Broad exposure to cybersecurity without too much exposure to any individual stock.
• Takes the need to research stocks out of the equation.
• You'll make money if the cybersecurity industry does well, regardless of the top performers.

Cons:

• Cybersecurity ETFs have fees that tend to be on the higher end for ETFs.
• Less upside potential compared with directly investing in the top cybersecurity companies individually.

Related investing topics

Cybersecurity is a long-term investment

With computing technology infiltrating every corner of the global economy, cybersecurity is poised to be one of the most important secular growth trends of the next decade and beyond.

Individual stocks that develop security technology services will be volatile, but investing in a basket of them could yield big returns over the long term. An ETF is a quick and easy way to gain investment portfolio exposure to this critical segment of the tech sector.

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