Cybersecurity Trends: Top 5 ETFs For Cyber Defense

3. iShares Cybersecurity and Tech ETF (NYSE:IHAK)

5-Year Share Price Performance as of March 21: 87.69%

iShares Cybersecurity and Tech ETF (NYSE:IHAK) aims to replicate the performance of the NYSE FactSet Global Cyber Security Index, which consists of developed and emerging market companies in cybersecurity and technology sectors, including hardware, software, products, and services. As of March 20, 2024, the fund holds net assets valued at $840 million, with an expense ratio of 0.47% and a portfolio comprising 35 stocks. iShares Cybersecurity and Tech ETF (NYSE:IHAK) is one of the best cybersecurity ETFs to buy. 

Fortinet, Inc. (NASDAQ:FTNT), a global provider of cybersecurity and networking solutions, is one of the top holdings of the iShares Cybersecurity and Tech ETF (NYSE:IHAK). On February 6, Fortinet reported a Q4 non-GAAP EPS of $0.51 and a revenue of $1.42 billion, exceeding Wall Street estimates by $0.08 and $10 million, respectively. 

According to Insider Monkey’s fourth quarter database, 42 hedge funds were long Fortinet, Inc. (NASDAQ:FTNT), compared to 45 funds in the last quarter. Terry Smith’s Fundsmith LLP is the largest stakeholder of the company, with 7.3 million shares worth $429 million. 

Conestoga Capital Advisors Mid Cap Strategy stated the following regarding Fortinet, Inc. (NASDAQ:FTNT) in its fourth quarter 2023 investor letter:

“Fortinet, Inc. (NASDAQ:FTNT): FTNT is the worldwide market share leader in network security firewalls (by units). During the quarter, shares sold off as reported billings growth missed expectations for the second consecutive quarter, resulting in a further lowering of 2023/2024 guidance. Currently, FTNT continues to face weaker demand following three consecutive years of elevated growth. This is likely a near-term downcycle and management is opportunistically buying back shares at an accelerated pace.”