WisdomTree Debuts Cybersecurity ETF

January 28, 2021

Today, WisdomTree has rolled out an ETF that targets internet security. The WisdomTree Cybersecurity Fund (WCBR) invests in companies experiencing revenue growth that generate a significant amount of their revenue from business activities related to cybersecurity.

WCBR comes with an expense ratio of 0.45% and lists on the Nasdaq stock exchange.

“Cybersecurity and security-oriented technology are central to remote work environments, and the more reliance we have on remote systems, the greater the importance and required investment in protecting the security of these infrastructures,” said WisdomTree Global Head of Research Jeremy Schwartz.

In addition to deriving at least half of their revenue from cybersecurity products and services, securities in the index must have revenue growth of 5%-7% over the trailing three-year period, with the required percentage dependent on whether they are a new or existing component. They must also meet size and liquidity requirements, the prospectus says.  

According to the press release, WisdomTree partnered with Team8, using its data on the cybersecurity space to create WCBR’s underlying index, the WisdomTree Team8 Cybersecurity Index. The index has 24 components.

WCBR’s top holdings include Palo Alto Networks (6.88%), Rapid7 (6.43%) and Fastly (5.88%), and is primarily a U.S.-focused ETF. Its biggest competitor is the global $3.5 billion First Trust NASDAQ Cybersecurity ETF (CIBR).

Contact Heather Bell at [email protected]

 

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