BUG - ETF AI Analysis

Top Page

Global X Cybersecurity Etf (BUG)

Rating:63Neutral

Price Target:―

The Global X Cybersecurity ETF (BUG) has a solid overall rating, driven by strong contributions from holdings like Check Point (CHKP) and Palo Alto Networks (PANW), both of which benefit from robust financial performance and positive earnings call sentiment. However, weaker holdings such as SailPoint (SAIL), which struggles with financial instability and bearish momentum, may have weighed on the fund's rating. A key risk factor is the ETF's concentration in the cybersecurity sector, which could expose it to industry-specific volatility.

Positive Factors

Targeted Cybersecurity Focus

The fund concentrates on cybersecurity companies, giving investors focused exposure to a growing and important technology niche.

Meaningful Fund Size

With a sizable level of assets under management, the ETF appears established enough to offer reasonable trading liquidity for most everyday investors.

Balanced Mix of Leaders and Emerging Names

The top holdings include several well-known cybersecurity leaders alongside smaller, more specialized firms, offering a blend of stability and growth potential within the theme.

Negative Factors

Recent Weak Performance

The ETF has shown weak returns over the past month, three months, and year to date, which may concern investors looking for near-term strength.

High Sector Concentration

Almost all of the fund is invested in technology and specifically cybersecurity, so it is heavily exposed to downturns in this single industry.

Limited Geographic Diversification

The portfolio is overwhelmingly invested in U.S. companies, with only a small allocation to Japan, leaving investors more exposed to U.S.-specific market and economic risks.

BUG Historical Chart

AUM935.78M

RegionGlobal

Expense Ratio0.51%

Beta1.06

IssuerGlobal X

Inception DateOct 25, 2019

Dividend Yield0.04%

Asset ClassEquity

Index TrackedIndxx Cybersecurity Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume418,269

30 Day Avg. Volume346,183

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

40.16

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering28

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

BUG Summary

BUG is the Global X Cybersecurity ETF, which follows the Indxx Cybersecurity Index and focuses on companies that protect computers, networks, and data from hackers. It mainly holds U.S. tech firms that build security software and services, including well-known names like Palo Alto Networks and CrowdStrike. Someone might invest in BUG if they believe demand for cybersecurity will keep growing as more of life and business moves online, and they want targeted exposure to this theme instead of picking individual stocks. A key risk is that it is heavily concentrated in technology and cybersecurity stocks, so its price can swing sharply with that sector.

How much will it cost me?The Global X Cybersecurity ETF (BUG) has an expense ratio of 0.51%, meaning you’ll pay $5.10 per year for every $1,000 invested. This is slightly higher than average because it is a sector-focused ETF that requires more active management to track the cybersecurity industry. Its specialized approach makes it a bit pricier than broad-market ETFs, but it offers targeted exposure to a growing and vital sector.

What would affect this ETF?The Global X Cybersecurity ETF (BUG) could benefit from increasing global demand for cybersecurity solutions as businesses and governments prioritize digital security amid rising cyber threats. However, the ETF may face challenges if technology sector growth slows due to economic downturns or regulatory pressures on tech companies. Its global exposure and focus on leading cybersecurity firms position it well for long-term growth but also make it sensitive to geopolitical tensions and competitive pressures within the sector.

BUG Top 10 Holdings

BUG is a pure play on global cybersecurity, with performance heavily shaped by a tight cluster of U.S.-listed tech names. Fortinet, Palo Alto Networks, and CrowdStrike have been losing steam lately, creating a headwind as their shares trend lower. Akamai and Okta are steadier hands, with more mixed but generally resilient action that helps cushion the bumps. On the weaker side, Varonis and newly public Rubrik have been clear laggards, so the fund’s story right now is one of a concentrated bet on cyber leaders going through a rough patch together.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
FTNT	Fortinet	6.71%	$62.78M	$60.76B	-17.37%	71 Outperform
AKAM	Akamai	6.59%	$61.70M	$14.86B	1.68%	73 Outperform
CHKP	Check Point	6.11%	$57.21M	$19.64B	-11.60%	76 Outperform
CYBR	CyberArk Software	5.78%	$54.10M	$22.49B	20.93%	52 Neutral
CRWD	CrowdStrike Holdings	5.72%	$53.53M	$120.17B	18.16%	67 Neutral
PANW	Palo Alto Networks	5.67%	$53.05M	$127.90B	-0.91%	73 Outperform
OKTA	Okta	5.19%	$48.53M	$16.21B	-3.47%	75 Outperform
VRNS	Varonis Systems	5.10%	$47.69M	$4.03B	-24.92%	48 Neutral
GEN	Gen Digital	4.91%	$45.97M	$15.55B	-10.28%	67 Neutral
RBRK	Rubrik, Inc. Class A	4.66%	$43.60M	$12.46B	-14.93%	50 Neutral

BUG Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

31.01

Negative

100DMA

32.84

Negative

200DMA

33.74

Negative

Market Momentum

MACD

-0.39

Negative

RSI

43.22

Neutral

STOCH

64.85

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For BUG, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 30.18, equal to the 50-day MA of 31.01, and equal to the 200-day MA of 33.74, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 64.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BUG.

BUG Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
BUG	―	―	$935.78M	0.51%	―
NUKZ	―	―	$825.60M	0.85%	―
IHAK	―	―	$814.98M	0.47%	―
PBW	―	―	$803.28M	0.64%	―
ROBT	―	―	$709.93M	0.65%	―
GII	―	―	$698.95M	0.40%	―

Performance Comparison

BUG

Global X Cybersecurity Etf

29.96

-4.53

-13.13%

NUKZ

Range Nuclear Renaissance Index ETF

―

IHAK

iShares Cybersecurity & Tech ETF

―

PBW

Invesco WilderHill Clean Energy ETF

―

ROBT

First Trust Nasdaq Artificial Intelligence & Robotics ETF

―

GII

SPDR S&P Global Infrastructure ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

Table of Contents