First Trust NASDAQ Cybersecurity ETF

CIBR

Market cap $11.1B

The First Trust Nasdaq Cybersecurity ETF is rated a buy due to superior performance, lower risk, and higher liquidity versus the Amplify Cybersecurity ETF. CIBR offers greater international exposure, stronger concentration in high-margin software, and better risk-adjusted returns, making it more attractive for long-term investors. HACK is rated hold, hindered by lower liquidity, higher expense ratio, weaker performance, and greater downside risk, despite slightly broader sector diversification.

Thematic ETFs tied to trends like artificial intelligence and quantum computing have drawn billions in new money into the market, and the portfolios have been rewarding investors with big gains. But ETF Action's Mike Akins warns that investors need to be mindful of significant risks within these newer portfolio categories, such as similarly branded AI funds, where performance differs by as much as 60% this year.

The First Trust NASDAQ Cybersecurity ETF (CIBR) faces growth concerns due to market-cap weighting and stagnation among its largest holdings. CIBR's concentrated portfolio is dominated by top players like Palo Alto and CrowdStrike, which either face slowing growth or high valuations, limiting upside. Compared to broader indices like QQQ, CIBR lags in risk-adjusted returns and upside potential, making it less attractive for growth-focused investors.

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

With Fed rate cut hopes and resilient earnings, these 5 ETFs could defy September's historic slump and shine. These ETFs are XLF, OUSA, RTH, GDX and CIBR.

Cybersecurity spending is surging due to rising threats, AI adoption, and regulatory pressure, making it a compelling long-term investment theme. First Trust NASDAQ Cybersecurity ETF offers diversified exposure to leading cybersecurity firms, with strong historical returns and high liquidity. Despite a premium valuation and higher expense ratio, CIBR's growth prospects and sector tailwinds justify its current pricing for long-term investors.

When you see a bad break in a position, the why doesn't matter nearly as much as taking action.

The recent SharePoint breach indicates the urgent need for cybersecurity. Investors can use ETFs like HACK and CIBR to position themselves for the future of digital infrastructure.

Tariff tensions loom, but tech ETFs like XLK, CIBR, CLOU and SMH could benefit from AI growth and cybersecurity demand.

CIBR hits a 52-week high, fueled by AI-driven demand for cybersecurity and strong momentum signals.