Cybersecurity Trends: Top 5 ETFs For Cyber Defense

1. First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR)

5-Year Share Price Performance as of March 21: 104.22%

First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) aims to replicate the performance of the Nasdaq CTA Cybersecurity Index before fees and expenses. This index tracks companies operating in the cybersecurity segment of the technology and industrials sectors, primarily engaged in developing, implementing, and managing security protocols for networks, computers, and mobile devices to safeguard data integrity and network operations. As of March 20, 2024, First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) holds net assets valued at $6.65 billion, with an expense ratio of 0.59% and a portfolio comprising 30 stocks. It is one of the best cybersecurity ETFs to monitor. 

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the top holdings of First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR). Palo Alto Networks, Inc. (NASDAQ:PANW) is a global provider of cybersecurity solutions. Their offerings include firewall appliances, software, and security management solutions like Panorama. On February 20, Palo Alto Networks, Inc. (NASDAQ:PANW) announced financial results for its fiscal 2024 second quarter, ending January 31, 2024. The company reported a non-GAAP EPS of $1.46 and a revenue of $1.98 billion, outperforming Wall Street estimates by $0.16 and $10 million, respectively. 

According to Insider Monkey’s fourth quarter database, 77 hedge funds were bullish on Palo Alto Networks, Inc. (NASDAQ:PANW), compared to 79 funds in the last quarter. 

TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q3 2023 investor letter:

“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”

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