5 Best Cybersecurity ETFs

1. Vanguard Information Technology Index Fund (NYSE:VGT)

5-Year Performance as of August 6: 125.97%

Vanguard Information Technology Index Fund (NYSE:VGT) aims to mirror the Information Technology Spliced Index’s performance, which gauges the returns of information technology sector stocks. Employing a passive approach, the fund follows a full-replication strategy. With an expense ratio of 0.10%, Vanguard Information Technology Index Fund (NYSE:VGT)’s net assets as of June 30, 2023 reached $61.3 billion. It is one of the top cybersecurity ETFs.

Cisco Systems, Inc. (NASDAQ:CSCO) is a prominent holding of Vanguard Information Technology Index Fund (NYSE:VGT). The company designs, manufactures, and sells networking and IT products worldwide. Cisco Systems, Inc. (NASDAQ:CSCO)’s offerings include networking, switching, routing, wireless, compute, and security products. On June 20, Cisco Systems, Inc. (NASDAQ:CSCO) introduced two AI-focused networking chips, the G200 and G202, to compete with existing market options. These chips aim to enhance AI and machine learning efficiency, potentially reducing switch usage by 40% and networking layers by 3%. This could result in a smaller carbon footprint for AI clusters, saving up to 9 million kWh annually, equivalent to 7.3 million pounds of coal or over 6,000 metric tons of carbon dioxide.

According to Insider Monkey’s first quarter database, Cisco Systems, Inc. (NASDAQ:CSCO) was part of 61 hedge fund portfolios, compared to 70 in the prior quarter. Cliff Asness’ AQR Capital Management is the leading stakeholder of the company, with 9.5 million shares worth $493.3 million. 

Artisan Value Fund made the following comment about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q4 2022 investor letter:

“We had one sale this quarter, exiting network equipment company Cisco Systems, Inc. (NASDAQ:CSCO). We chose to use the proceeds on more attractive value opportunities as Cisco’s growth has come in below what we had hoped for, and the company is increasingly looking at M&A to augment its growth rate.”

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