The Global X Cybersecurity ETF (BUG) is an exchange-traded fund designed to provide exposure to global companies operating within the cybersecurity industry. The ETF is managed by Global X ETFs and trades under the ticker BUG on the Nasdaq.

Classified as a thematic equity ETF, the fund invests in businesses that develop solutions aimed at protecting networks, data, systems, and digital infrastructure. Its strategy focuses on a segment that has become increasingly important as digital transformation accelerates and cyber threats continue to evolve worldwide.

The ETF follows a passive management approach and seeks to replicate the performance of the Indxx Cybersecurity Index, a benchmark composed of companies that derive a significant portion of their revenue from cybersecurity-related products and services.

Diversification and sector exposure

BUG provides exposure primarily associated with:

• Cybersecurity.

• Network security.

• Data protection.

• Cloud computing.

• Enterprise software.

• Digital security.

• Technology infrastructure.

• Information technology.

The portfolio includes companies from multiple countries that operate in areas such as endpoint protection, cloud security, digital identity management, network monitoring, and cyber-threat prevention.

The ETF’s performance is closely tied to demand for digital-security solutions, which has been supported by trends such as cloud adoption, remote work, artificial intelligence, and ongoing business digitalization.

Structure and costs

BUG shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund’s distribution policy.

History and evolution of the ETF

The Global X Cybersecurity ETF was launched in 2019 with the objective of providing targeted exposure to the global cybersecurity industry through an exchange-traded structure.

Since inception, the fund has tracked the expansion of a sector driven by the growth of digital data, increased connectivity, and the rising need to protect organizations against cyber threats.

In recent years, trends such as cloud computing, artificial intelligence, digital transformation, and stronger privacy regulations have further increased the importance of the companies represented in the ETF’s portfolio.

Additional Information

Global X Cybersecurity ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $1.34 billion.

Over the past 12 months, Global X Cybersecurity ETF recorded a return of 29.37%, with its price trading between $23.30 and $43.00 during the same period.

The ETF is traded under the ticker BUG.