Cybersecurity ETFs Are Rallying While AI Stocks Cool Off

Summary

Many top cybersecurity firms experienced noteworthy rallies throughout Q2 2026, a welcome shift after a period of stagnation for much of the last year up until that time. Companies may be navigating AI upheaval more successfully—Anthropic's Project Glasswing appears to be a model for how traditional cybersecurity companies can partner with AI providers in a mutually beneficial way. On top of this, earnings across the industry have picked up, the result of increased opportunities for attacks on cloud operations and other market-wide vulnerabilities. The takeaway for many investors is that the second half of 2026 could be an opportunity for cybersecurity companies to further distinguish themselves, with various sub-sectors proving ripe for growth and share prices across the sector showing resilience even while a broader AI sell-off has dampened results elsewhere. Cybersecurity exchange-traded funds (ETFs) can help to capture this momentum. A (Relatively) Low-Cost Way of Drilling Down on Cybersecurity NamesWisdomTree Cybersecurity Fund TodayWCBRWisdomTree Cybersecurity Fund$36.62 -1.03 (-2.74%) As of 07/22/2026 03:59 PM Eastern52-Week Range$22.49▼$41.14Assets Under Management$106.91 millionWith returns of more than 35% year to date (YTD), the WisdomTree Cybersecurity Fund NASDAQ: WCBR is an information technology fund with a specific focus on companies involved in the cybersecurity space. Its basket is fairly narrow, as the fund holds only 33 positions. However, even the largest allocation—to industry leader CrowdStrike Holdings Inc. NASDAQ: CRWD—is only about 7.7%. This makes the basket a way to gain access to a moderately evenly-weighted collection of the biggest and most successful global cybersecurity companies trading today. WCBR is not the largest cybersecurity ETF by any means. Indeed, its $111 million in managed assets and similarly modest trading volume suggest that many investors overlook this fund. Still, with an expense ratio of 0.45%, this is actually one ...