Forget CrowdStrike: This ETF Holds It and 30 Rivals for 0.59%

In the cybersecurity world, CrowdStrike (NASDAQ:CRWD) is a household name, but concentrating a portfolio in a single stock carries risks. The First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) offers an alternative, holding CrowdStrike alongside more than 30 rival companies, all for an annual expense ratio of just 0.59%.

Fund Details

CIBR is an index-tracking ETF that follows the NASDAQ CTA Cybersecurity Index, providing broad exposure to US-listed cybersecurity companies. Top holdings include Palo Alto Networks (PANW), CrowdStrike (CRWD), and Fortinet (FTNT).

Comparison with Direct Investment

While CrowdStrike stock has gained 45.26% year-to-date through June 23, 2026, single-stock concentration exposes investors to company-specific risks. For instance, the fallout from the July 2024 Falcon update incident continues to weigh on CrowdStrike's results through ongoing litigation costs. The ETF mitigates these risks through diversification.

Context

This offering comes at a time when the cybersecurity sector is growing rapidly but also faces regulatory and legal challenges. Investors seeking sector exposure without bearing single-company risk may find CIBR a suitable option.

What This Means for Investors

CIBR provides a balanced way to invest in cybersecurity with relatively low fees. However, the fund's performance may differ from that of an individual stock like CrowdStrike, especially during periods of significant outperformance or underperformance of a particular stock.