Global X Cybersecurity ETF

BUG

Market cap $992M

The Investment Committee give you their top stocks to watch for the second half.

Global X Cybersecurity ETF is upgraded to a Buy, with 24% upside potential by year-end 2026. BUG's portfolio rebalancing and additions like SailPoint and Rubrick have impacted recent performance, but sector growth remains robust. Consensus estimates project 13% revenue growth and significant margin expansion, supporting strong adjusted EPS growth through 2027 for BUG.

As AI adoption surges and cyberattacks escalate, cybersecurity ETFs like CIBR and HACK stand out as investors seek digital defense gains.

It seems like every week, there is another announcement from a major institution, retailer, or other large corporate entity reporting that it suffered a cybersecurity breach that compromised client or customer data.

My identity was stolen once, and that was about as fun as it sounds. After returning from a trip abroad, I noticed a series of errant charges on my credit card statement, including a handful of sneaker stores across Tokyo.

BUG ETF offers reasonable fees, liquidity, and niche exposure, but recent performance and volatility undermine its appeal as a growth play right now. High tracking error and underperformance, versus broader tech and the S&P 500 signal that risk is not being matched by returns in the current environment. Earnings weakness and negative analyst sentiment, especially after Q2, have pressured top holdings and contributed to recent drawdowns in the cybersecurity sector.

Malcolm Ethridge, Managing Partner at Capital Area Planning Group, joins CNBC's Halftime Report to explain why he's buying cybersecurity.

Half the year is gone… now the big calls: Here are the stocks the Investment Committee is watching next.

The Investment Committee react to the news out of Qatar and give you their top stocks to watch for the second half.

I'm upgrading BUG to a buy, as cybersecurity demand rises with AI adoption and remains a corporate priority despite macro uncertainty. BUG's concentrated portfolio and high valuation are risks, but its growth prospects and industry moat justify a bullish stance. Technical momentum is positive, with strong RSI and seasonal tailwinds; a breakout above all-time highs would confirm the bull case.