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Are Cybersecurity ETFs Attractive?

Steve LeCompte | | Posted in: Equity Premium

Key Insight

Five cybersecurity ETFs (HACK, CIBR, IHAK, BUG, WCBR) underperformed QQQ (average CAGR 13.5% vs 18.1%; MaxDD -35% vs -33%; monthly dividend-adjusted returns since each ETF's inception through Jul 2026; QQQ over matched periods; short samples).

Do exchange-traded funds (ETF) focused on cybersecurity stocks offer attractive performance? To investigate, we compare performance statistics of five cybersecurity ETFs, all currently available, to those of Invesco QQQ Trust (QQQ), as follows:

  1. Amplify Cybersecurity ETF (HACK)
  2. First Trust NASDAQ Cybersecurity ETF (CIBR)
  3. iShares Cybersecurity and Tech ETF (IHAK)
  4. Global X Cybersecurity ETF (BUG)
  5. WisdomTree Cybersecurity Fund (WCBR)

We focus on average return, standard deviation of returns, reward/risk (average return divided by standard deviation of returns), compound annual growth rate (CAGR) and maximum drawdown (MaxDD), all based on monthly data. Using monthly dividend-adjusted returns for all specified ETFs since inceptions and for QQQ over matched sample periods, all through July 2026, we find that:

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