European-listed cybersecurity ETFs attracted €155.9m of net inflows in the week to 18 September, as several funds tracking the theme featured among the strongest-performing equity ETFs.
Trackinsight figures, published by ETF Express on 21 September, showed the theme attracted more money than global infrastructure and biotechnology and genomics, which gathered €76.4m and €47.2m respectively.
WisdomTree Cybersecurity UCITS ETF and Global X Cybersecurity UCITS ETF ranked second and third in the report’s equity ETF performance table, followed by Rize Cybersecurity and Data Privacy UCITS ETF in fourth place. Five of the ten funds listed focused on cybersecurity. The gains came amid increased attention to the security risks associated with artificial intelligence.
Our view
David Batchelor, senior analyst at QuotedData, said: “Cybersecurity offers a different perspective on the AI investment story. As businesses introduce more powerful digital tools, protecting their systems and data becomes an increasingly important part of making that investment work. The opportunity extends beyond companies developing AI to those helping customers manage its risks.
“However, a compelling case for increased security spending does not automatically make every cybersecurity company an attractive investment. Providers still need to turn demand into profitable growth, and the price investors pay matters, particularly after a sharp rally.
“For ETF investors, portfolio construction also deserves attention. Funds bearing similar names can hold different companies and allocate very different weights to their largest positions. Investors should check what an ETF adds to their existing technology exposure.”
