As data breaches and cyberattacks rise, cybersecurity exchange-traded funds (ETFs) offer investors a diversified option for cybersecurity investing.

The term cybersecurity originated in 1989, and today is defined as the measures taken to protect a computer or computer system against unauthorized access or cyberattack threats. Many companies focused on this market develop cybersecurity hardware and software, or offer cybersecurity services.

The number of security incidents has increased significantly in recent years, as have the costs companies must pay. In fact, according to a 2025 research report from IBM (NYSE:IBM), the average cost of a single data breach event in the US was US$10.22 million — up 9 percent over the previous year and the highest cost in the 20 years since the first report was issued.

In positive news, the global average cost for a data breach actually pulled back slightly last year at US$4.44 million compared to its all-time high of US$4.88 million in 2024. This is a change IBM attributed to AI and automation helping security teams to identify and contain these breaches more quickly, not to a falling rate of incidents.

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These threats are unlikely to fade anytime soon. The forecast for the cybersecurity market is expected to remain strong with trends in the space including the threats posed by AI and quantum computing.

There are multiple ways to invest in the cybersecurity market, including cybersecurity ETFs, which offer a low-cost way to enter the space. ETF fees and expenses are typically lower than those associated with mutual funds or other types of actively managed financial instruments. What’s more, these ETFs provide exposure to a basket of cybersecurity stocks, meaning investors can spread their risk around.

According to ETF.com, there are nine cybersecurity ETFs listed in the US. Here’s a closer look at the top four cybersecurity ETFs by assets under management (AUM). ETFs with assets under management above US$500 million are included in this list. All numbers and figures were current as of June 16, 2026.