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For investors seeking momentum, Global X Cybersecurity ETF BUG is probably on the radar. The fund just hit a 52-week high and is up 35.77% from its 52-week low price of $26.03/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
BUG in Focus
The underlying Indxx Cybersecurity Index is designed to provide exposure to exchange-listed companies positioned to benefit from the increased adoption of cybersecurity technology. The product charges 50 bps in annual fees (See: All Technology ETFs).
Why the Move?
Given the recent surge in the adoption of AI technology, the need for cybersecurity becomes increasingly evident. Cyberattacks are on the rise as an increasing number of companies across various sectors are integrating generative AI and other aspects of technology into their daily operations. With corporate investments in AI continuing to rise, an inevitable increase in cybersecurity spending is expected.
The global cybersecurity market is estimated to witness a CAGR of 7.58%, reaching a valuation of $271.9 billion by 2029, according to Statista.
More Gains Ahead?
BUG might continue its strong performance in the near term, with a positive weighted alpha of 16.91 (as per Barchart.com), which gives cues of a further rally.
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Global X Cybersecurity ETF (BUG): ETF Research Reports