Cybersecurity ETFs to Buy as Top Holdings Deliver Robust Q2 Results

This year’s second-quarter earnings cycle has delivered a clear message to investors: cybersecurity is no longer a defensive bet — it's a growth imperative. As enterprises grapple with an unprecedented surge in AI-driven cyber threats, which have jumped 89% from last year, according to CrowdStrike’s 2026 Threat Hunting Report, securing digital infrastructure has become a non-negotiable operational priority. 

This reality has created a powerful tailwind for industry leaders like Palo Alto Networks PANW, which has not only surpassed analyst expectations but also demonstrated accelerating momentum. Notably, the Nasdaq CTA Cybersecurity Index has soared 36.5% year to date, outperforming the broader Nasdaq Index’s 13% return over the same period. 

For investors looking to capitalize on this secular growth trend, the recent market performance could make cybersecurity stocks and the exchange-traded funds (ETFs) that hold them compelling entry points.

The following section breaks down the standout financial performances delivered by top cybersecurity players in the second quarter and illustrates how their underlying strength powers broader ETF growth.

Q2 Performance Breakdown: Cybersecurity Leaders

The recent second-quarter earnings cycle highlighted strong top and bottom-line growth among leading cybersecurity companies, driven by an increasingly challenging AI-enabled threat environment:

CrowdStrike CRWD reported a 26% year-over-year increase in revenues to $1.19 billion for the first quarter of fiscal 2027, while Annual Recurring Revenue (ARR) reached $5.51 billion as of April 30, 2026. Its adjusted earnings per share improved a solid 50.7% year over year, fueled by rapid customer adoption of its AI-powered Falcon platform. 

It became the only cybersecurity company selected as a launch partner in both Anthropic’s Project Glasswing and OpenAI’s Trusted Access for Cyber (TAC) programs. The stock gained a solid 94.1% during the April-June quarter.

Palo Alto Networks posted third-quarter fiscal 2026 revenue growth of 31% to $3 billion, while its Next-Generation Security ARR surged 60% to $8.1 billion. CEO Nikesh Arora highlighted the latest advancements at the AI frontier, leading to increased demand for cybersecurity as the primary growth driver for the company.  

Its remaining performance obligation (RPO) grew 36% year over year to $18.4 billion in the last reported quarter. The stock surged 112.2% during the second quarter of 2026.

Fortinet FTNT delivered a standout performance in the second quarter of 2026, crushing estimates with its quarterly revenues of $2.05 billion, up 26% year over year. A 52% jump in its product revenues underscored massive demand for hardware and software upgrades designed to manage complex AI network traffic.

Moody’s Ratings has upgraded Fortinet’s senior unsecured notes rating to A3 from Baa1 and its senior unsecured shelf rating to (P)A3 from (P)Baa1, the highest rating of any public cybersecurity company. The stock has rallied 89.3% during the second quarter.

AI Threat Outlook: Why ETFs Offer a Better Entry Strategy

As generative AI lowers the technical barrier for cybercriminals to launch sophisticated phishing schemes, zero-day exploits, and automated ransom attacks, cybersecurity spending is shifting from discretionary IT expenses to critical utility-like infrastructure. 

As the threat landscape evolves at machine speed, a long-term demand scenario is there for the sector. To this end, some market experts believe that cybersecurity companies have the potential to experience consistent outsized revenue growth, even in an economic downturn.

Against this backdrop, the combination of robust second-quarter earnings and an intensifying AI threat landscape presents an ideal entry point for cybersecurity ETFs. While individual stock picking exposes investors to company-specific volatility — such as post-earnings swings and execution risks — cybersecurity ETFs offer diversified, basket exposure to the primary beneficiaries of this structural growth trend without single-stock risk.

4 Cybersecurity ETFs to Buy

Considering the aforementioned discussion, investors may add the following ETFs to their portfolios:

First Trust NASDAQ Cybersecurity ETF CIBR

With $15.56 billion in net assets, the fund provides exposure to 42 companies primarily involved in developing, implementing, and managing security protocols for private and public networks, computers, and mobile devices to protect data integrity and network operations. PANW holds the first spot in this fund, with 9.74% weightage, while CRWD holds the second spot with 8.54% weightage. FTNT holds the third position with 8.25% weightage. 

CIBR has risen 36.4% year to date and charges 58 basis points (bps) in fees. It traded at a good volume of 1.50 million shares in the last trading session. 

Amplify Cybersecurity ETF HACK

This fund, with net assets worth $2.97 billion, offers exposure to 23 companies actively involved in providing cybersecurity solutions that include hardware, software, and services. PANW holds the first spot in this fund with 6.57% weightage, while CRWD holds the second spot with 5.62% weightage. FTNT holds the sixth spot with 5.01% weightage. 

HACK has soared 43.5% year to date and charges 60 bps in fees. It traded at a volume of 0.21 million shares in the last trading session. 

Global X Cybersecurity ETF BUG

This fund, with net assets worth $1.51 billion, offers exposure to 31 companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. PANW holds the first spot in this fund, with 8.02% weightage, while CRWD holds the third spot with 7.34% weightage. FTNT holds the fourth spot with 7.20% weightage. 

BUG rallied 38.2% year-to-date and charges 50 bps in fees. It traded at a volume of 0.97 million shares in the last trading session. 

iShares Cybersecurity and Tech ETF IHAK

This fund, with net assets worth $1.08 billion, offers exposure to 35 companies at the forefront of cybersecurity across developed & emerging markets. Qualys holds the first spot in this fund, with 5.90% weightage, while PANW holds the third spot with 4.89% weightage. CRWD holds the sixth spot with 4.51% weightage. 

IHAK has surged 36.7% year to date and charges 47 bps in fees. It traded at a volume of 0.12 million shares in the last trading session. 
 

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