One of them is L&G Cyber Security ETF (LSE:ISPY), which as the name suggests is a thematic exchange-traded fund. So far in 2026, this fund has rocketed 42%.

The more recent return though is even more impressive. Because since bottoming out at 2,026p towards the end of February, the share price has surged by roughly 61% to reach 3,269p today.

Can it keep going higher?

Back in fashion

L&G Cyber Security ETF holds a basket of 30 stocks involved in providing cybersecurity. With this vehicle, I get exposure to industry leaders like Cisco Systems, CrowdStrike, Cloudflare, Palo Alto Networks, and Fortinet.

Cybersecurity is experiencing huge growth as the digital revolution picks up steam. However, why I’m really bullish is because rapid advances in artificial intelligence (AI) are turbocharging hacks and therefore the need for cybersecurity.

Here’s what I wrote back in April 2023: “Cybersecurity threats are constantly changing as the technologies that hackers use get ever more sophisticated. And artificial intelligence is set to up the ante in this never-ending game of cat and mouse. This fund [L&G Cyber Security ETF] provides broad exposure to the whole industry.”

Since then, the share price is up 110%. But as mentioned, the recent performance has been extraordinarily strong. This is because cybersecurity stocks have taken off over the last few weeks.

Before that, these shares got caught up in the software sell-off after a powerful cybersecurity-focused AI model was developed by Anthropic (called Claude Mythos). Investors feared this could disrupt traditional cybersecurity firms. 

Instead, Anthropic launched ‘Project Glasswing’ to strengthen global cybersecurity firms’ defences against AI cyberattacks. In the eyes of investors, this security tool became a strength rather than a vulnerability. 

Very strong growth

Can the bull run continue? Well, it’s certainly possible. Anthropic is reportedly preparing to go public, so excitement around AI could continue for months, spilling over into cybersecurity.

According LGIM (Legal & General‘s asset management business), the global market for AI-based security products will reach more than $133bn by 2030, up from just $14.9bn in 2021.

Also, in the here and now, many of the ETF’s holdings are reporting very strong growth. For example, in Palo Alto’s fiscal third quarter, revenue jumped 31% to $3bn, while next-generation security annual recurring revenue surged 60% to $8.1bn.

The latest advancements at the AI frontier have increased the level of urgency around cybersecurity, and redefined the shape of the industry for the coming years.
Palo Alto CEO Nikesh Arora.

AI is driving a fundamental re-platforming of the Internet and a paradigm shift in how software is created and consumed; it’s shaping up to be the biggest tailwind we’ve ever seen in Cloudflare’s history.
Cloudflare CEO Matthew Prince.

Tread carefully

On the other hand, it’s important to note that many of these stocks are now expensive. And the fact that the portfolio is concentrated in just one area adds more risk.

Therefore, I wouldn’t go all-in on this ETF today. Instead, I would consider adding on dips, recognising that this is likely a multi-decade secular growth industry.

Should you invest £5,000 in Legal & General Ucits ETF Plc - L&g Cyber Security Ucits ETF right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Legal & General Ucits ETF Plc - L&g Cyber Security Ucits ETF made the list?

Ben McPoland owns shares in Cloudflare, CrowdStrike, L&G Cyber Security ETF, Legal & General, and Nvidia.

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I’ve been loading my own Self-Invested Personal Pension (SIPP) with ETFs recently. The following three have allowed me to spread risk, and if their past performances turn out to be an accurate guide, they could give me an average 26.8% annual return over the next decade.

Low-cost US share exposure

The HSBC S&P 500 ETF (LSE:HSPX) is about as straightforward as these funds come. It tracks the performance of the US leading index of 500 shares, of which there are currently many on the market.

What attracted me to this one is that has one of the lowest ongoing charges out there, at 0.09%.

Why invest in the S&P 500 though? Well, it provides exposure to some of the largest and best companies on the planet, ones with strong records of innovation, deep pockets, and loyal customer bases across the globe. We’re talking about microchip manufacturer Nvidia, for example, which just made history as the world’s first $4trn company.

Since its launch in June 2022, this fund’s delivered an average annual return of 19.5%. Future returns could be compromised if the recent investor rotation away from US shares and into global equities continues. But I remain confident.

Riding the digital defence boom

The L&G Cyber Security ETF (LSE:ISPY) is a thematic fund rather than a bog-standard index tracker. Its goal is to harness the growth potential of tech shares “that generate a material proportion of their revenues from the cyber security industry“.

These range from hardware and software creators that protect files, websites, and networks from online attacks, to service providers that deliver consulting and other security-related services.

This fund has room for considerable growth as the digital revolution rolls on and the number of online threats increases. Allied Market Research thinks the world’s cybersecurity sector will expand at an annualised rate of 10.4% in the decade to 2033.

Returns may disappoint during economic downturns when tech firms tend to cut spending. But the long-term potential is considerable — it’s delivered an average annual return of 12.1% since its launch in September 2015.

48.7% returns

The HANetf Future of Defence (LSE:NATP) was launched in July 2023 to capitalise on booming demand for defence shares. So far it’s delivered beyond all reasonable expectations, providing an average annual return of 48.7% since then.

Since Russia’s invasion of Ukraine in 2022, countries have turbocharged weapons spending amid rising geopolitical and military threats. Defence sector profits have swelled, a trend that I’m expecting to continue.

Like most thematic defence funds, this product includes the usual blue-chip suspects like BAE Systems, Palantir, and Safran. But it also contains cybersecurity stocks including Palo Alto and CrowdStrike, reflecting the changing nature of warfare.

Future returns could disappoint if geopolitical tensions ease. But given the current direction of travel, this looks an unlikely scenario in my book.

The post Stunning 26.8% annual returns! Here are 3 ETFs I’ve bought to supercharge my SIPP appeared first on The Twelfth Magpie.

L&G Cyber Security ETF

The L&G Cyber Security ETF (LSE:ISPY) does what it says on the label. It provides exposure to a swathe of tech companies whose primary role is to protect individuals and businesses against online threats.

In total, the fund holds shares in 35 different companies. These include pureplay security providers including Palo Alto, CrowdStrike and Rubrik, and more diversified tech specialists such as Cisco. It also has a significant holding in telecoms giant Broadcom.

This provides multiple ways for investors to capitalise on the surging digital economy, but with a focus on the fast-growing (and potentially more resilient) cyber security segment.

A Royal Institution of Chartered Surveyors (RICS) survey shows 27% of UK companies have experienced at least one cybersecurity incident in the last year. That’s up from 16% a year ago, data shared with the Guardian newspaper shows.

What’s more, almost three-quarters of the 8,000 business leaders surveyed believe an online attack will disrupt their business in the next 12-24 months. In this climate, I believe it’s fair to expect rapid growth in the cybersecurity market to remain broadly resilient even if economic conditions worsen.

Legal & General‘s fund has delivered an 11.3% average annual rate of return since 2020. I bought it for my own portfolio, even though the rise of artificial intelligence (AI) poses substantial challenges for the sector moving forwards.

BlackRock Smaller Companies Trust

The BlackRock Smaller Companies Trust (LSE:BRSC) invests in a far more diversified selection of companies. But with a focus on small-and mid-sized businesses, it also has significant growth potential by excluding more mature blue-chip shares.

In total, the investment trust holds 103 different companies spanning different sectors. Industrials, financials and consumer goods are all well represented (accounting for 27%, 24% and 20% of the portfolio respectively). Other industries covered include real estate, technology, healthcare and basic materials.

Some of the trust’s largest weightings are financial services provider XPS Pensions, raw earth materials supplier Breedon and book publisher Bloomsbury Publishing.

Another interesting feature of the trust is its focus on UK equities (99% of the complete portfolio). On the one hand, this means it carries greater geographic risk than continental or global funds. It’s only delivered an average annual return of 3.8% since 2020.

However, it may also lead to superior returns going forward if a recent rotation away from US equities and into European and UK ones continues. It’s also worth mentioning that the past five years were characterised by post-Brexit political turbulence and high interest rates in the UK. These headwinds may prove far less significant over the next half-decade, but they remain risks nonetheless.

Today, the BlackRock trust trades at a weighty 12.8% discount to its net asset value (NAV) per share. I think that makes it worth serious consideration from long-term value investors.

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Share investing doesn’t necessarily mean individuals need to take on excessive risk however. The multitude of investment trusts and funds available today means investors can target life-changing returns in a shares ISA without having to endure significant risk.

Here’s what I just bought

Take the example of the L&G Cyber Security ETF (LSE:ISPY). This is an exchange-traded fund (ETF) I recently purchased for my own portfolio.

Companies that help businesses and individuals protect themselves against online threats have significant growth potential. According to Statista, the broader cybersecurity sector’s set to grow at an average of 7.6% each year through to 2029.

Purchasing any individual tech stocks is a high-risk endeavour. Due to the sector’s fast-paced evolution, market leaders may struggle to maintain their competitive edge over time. And for cyber security providers, any high-profile systems failure can leave their reputation (and future sales prospects) in tatters.

By investing in a product like this L&G Cyber Security, I can lessen (if not totally eliminate) the chances of my holdings becoming obsolete. The fund invests in dozens of tech businesses across the information technology, telecommunications and industrials sectors.

However, it still provides excellent exposure to some of the cybersecurity industry’s biggest and most innovative players:

£400 a month = £1m?

It’s a common misconception that diversifying like this means investors must settle for mediocre returns. Nobel-prize-winning economist Harry Markowitz famously called diversification a “free lunch“, where investors can enhance safety without compromising long-term returns.

L&G Cyber Security’s performance over the past decade proves this perfectly. Since its creation in September 2015, it’s provided an average annual return of roughly 11%.

If this were to continue, someone putting £300 in this fund each month would — after 30 years — have a £1.1m nest egg (excluding trading fees) to retire on.

Other options

That’s all well and good. But some investors may be sceptical that the cybersecurity industry can deliver the sort of growth that the likes of Statista expect.

The good news is that the ETF market has exploded, and individuals have thousands of these lower-risk instruments to choose from. Investors can gain exposure to different sectors, regions, themes, and can tailor the amount of risk they with to take on.

The Xtrackers MSCI World Momentum fund, for example, holds shares in 360 global companies. These range from Apple and Walmart in the States, through to non-US shares like Unilever, Siemens and Ferrari.

As you can see, this provides even greater diversification for investors. And what’s more, its return over the last decade is even higher, at 11.8%.

ETFs like these can still fall during periods of market volatility. But over the long term, I believe they’re attractive ways to consider targeting retirement wealth without taking on excessive risk.

The post Targeting a £1m Stocks and Shares ISA? Here’s a low-risk strategy to consider appeared first on The Twelfth Magpie.

Here are three ETFs spanning cybersecurity, artificial intelligence (AI) and defence I think have tons of potential and are worth further research.

No longer a luxury

First up is L&G Cyber Security UCITS ETF (LSE: ISPY). This fund holds 41 stocks across the increasingly relevant cybersecurity industry. In recent weeks, Marks and Spencer, Co-op and Harrods have all been hit by cyber attacks.

On 27 May, Adidas was the latest firm to have customers’ personal information stolen. This highlights how cybersecurity spending is now a necessity rather than a luxury for organisations of all sizes.

The fund holds many top stocks in the space, including CrowdStrike, Cloudflare, and Palo Alto Networks. So far in 2025, CrowdStrike and Cloudflare are up 37% and 50% respectively.

The ETF’s share price is up 56% over the past two years. However, one consequence is that valuations are quite high across much of the portfolio. A risk here then is that the stock market pulls back, reducing the ETF’s value in the near term.

Over the long term though, I think it’s set up for further gains. AI’s creating an escalating arms race between cyber attackers (groups and nation states) and the defending companies in this ETF.

AI innovation

Sticking with AI, I think the iShares AI Innovation Active UCITS ETF (LSE: IART) is well worth considering. According to McKinsey Global Institute, AI software and services alone are projected to generate $15.5trn-$22.9trn in annual economic value by 2040!

As the name suggests, this ETF’s invested in firms doing a lot of AI innovation today. Top holdings include chip king Nvidia, Microsoft, which has a large stake in ChatGPT maker OpenAI, and Meta, the social media giant that’s using AI to improve targeted ads on Facebook and Instagram.

Now, one thing worth pointing out is that this actively-managed ETF was only launched in January. So there’s no track record of outperformance to go on, which adds a bit of risk.

However, I like that among the 39 holdings there are some smaller innovative names in there. These have the potential to eventually become tech giants in their own right. Examples include cloud-based data firm Snowflake, gaming platform Roblox, and Cloudflare (again).

Dual focus

The third fund is the HANetf Future of Defence ETF (LSE: NATO). Since launching in mid-2023, the share price has more than doubled.

This ETF has a dual focus. It provides exposure to companies benefitting from both NATO military and cyber defence spending. Top holdings include Germany’s Rheinmetall, the UK’s BAE Systems, and AI software giant Palantir.

While these stocks have been on fire recently, a cut to the US defence budget could hurt their upwards trajectory. Meanwhile, a global recession might lead to lower growth and earnings for some firms in the portfolio.

On the other hand, European nations are now committed to spending hundreds of billions on building their long-neglected defence capabilities. This is a powerful multi-decade trend that’s likely to push the ETF higher, over time.

The post 3 top ETFs from the London Stock Exchange to consider in June appeared first on The Twelfth Magpie.

L&G Cyber Security ETF

Investing in individual shares often delivers market-beating returns, though risks can be higher. Exchange-traded funds (ETFs), on the other hand, can help investors target huge gains while also diversifying for added protection.

The L&G Cyber Security ETF‘s (LSE:ISPY) one such fund I think’s worth considering in June and holding for the long haul. With the digital realm rapidly growing, and the number of online attacks on the rise, cyber security’s set to become increasingly big business.

The attack on Marks & Spencer‘s digital infrastructure in April that’s crippled sales (and the company’s share price) underlines the growing importance of both businesses and individuals having proper protections in place.

Competition among the world’s software manufacturers is intense. So by buying an industry fund like the L&G Cyber Security ETF, investors can mitigate this threat by owning a basket of the sector’s largest and most innovative players.

This particular fund holds shares in 35 different companies including Crowdstrike, Cloudfare and Palo Alto. Its top-10 holdings comprise a cumulative 54.2% of the fund, meaning it’s not greatly exposed to any one operator.

While cyber security’s one of the more resilient tech segments, earnings can still fall during economic downturns when corporate spending declines. This could impact the performance of the fund if trade tariffs sap the world economy.

Yet I’m still optimistic this L&G product will provide strong returns over the long term. It’s delivered an average annual return of 11.9% during the last five years.

Fresnillo

Precious metals stocks like Fresnillo (LSE:FRES) have hit a roadbump more recently, reflecting falling demand for safe-haven assets. However, I think this trend of recent weeks will fizzle out, reinvigorating demand for flight-to-safety gold.

While fears of a full-blown trade war have reduced, the threat remains that trade tariffs will cause shockwaves for the global economy. Tension between superpowers (like the US and China) and trading blocs (like the EU) are meanwhile rumbling on in the background, and uncertainty over White House policy on trade and foreign policy abounds.

This provides fertile ground for gold and silver to rise again, which could be boosted by further weakness in the US dollar. Credit risks in the States continue to grow, weighing on the buck and making it more cost-effective to buy dollar-denominated assets.

Purchasing mining stocks does, on the downside, expose investors to the unpredicable business of metals exploration and production. Despite gold and silver price rises, profits can still splutter if costs balloon or output comes to a halt.

But major operators like Fresnillo also have the scale to better absorb such problems. This FTSE 100 operator has seven mines in operation across Mexico.

With a strong balance sheet — Fresnillo reported net cash of $458.3m at the end of December — it also plenty of scope to expand for growth and extra diversification.

The post A FTSE 100 share and a top ETF to consider in June! appeared first on The Twelfth Magpie.

CrowdStrike

First, let’s start with CrowdStrike (NASDAQ: CRWD). This cybersecurity firm made headlines for all the wrong reasons last summer when a faulty update to its Falcon security software caused millions of Microsoft Windows machines to crash. This led to widespread disruptions across various sectors, including airlines, banks, and hospitals. Oops.

Events like this highlight the risks for software firms. CrowdStrike cannot afford another high-profile mishap like that. It would destroy customer trust and likely lead to contract losses.

Still, I added to my holding in August after the company’s share price dropped 44% in a month. The stock has rebounded over 70% since, making that a timely purchase.

The reason I did so was because the incident was a self-made blunder by CrowdStrike rather than a breach of its cloud-native cybersecurity platform. That remains industry-leading, and despite last year’s gaffe, the firm’s annual recurring revenue (ARR) still grew 23% year on year to $4.24bn.

Longer term, the target is for ARR of $10bn, which CrowdStrike is confident it can still hit. Adoption of its various AI-powered cybersecurity modules remains very strong. The more customer threats that the firm’s platform repels, the more data it collects. This sharpens its detection models and strengthens protection for all other customers.

Looking ahead, analysts expect the company’s revenue and profits to grow in the 20%-30% range over the next three years. And while founder-CEO George Kurtz is at the helm, I don’t expect the company’s focus or innovation to slip.

The stock is far from cheap today. But given CrowdStrike’s best-in-breed status in endpoint and cloud-native cybersecurity, I think it’s worth considering for investors with a five to 10-year horizon.

Safety in numbers

If buying a pricey cybersecurity stock seems too risky, investors might want to consider Legal & General Cyber Security UCITS ETF (LSE: ISPY). This exchange-traded fund (ETF) is invested in around 41 different cybersecurity stocks.

The top holding today is, you guessed it, CrowdStrike. However, the ETF has all the other industry leaders, including Cloudflare (another stock I own), Palo Alto Networks, CyberArk Software, and SentinelOne.

One risk to bear in mind is that these stocks — many of which are highly valued — could fall sharply if the US enters a recession. This would impact the ETF’s value.

Nevertheless, I’m bullish on the rise of cybersecurity, particularly as AI is increasing both the frequency and sophistication of cyberattacks. Last year, the UK’s National Cyber Security Centre received three times the number of severe attacks than the year before.

Today we are declassifying an intelligence assessment that shows AI is going to increase not only the frequency but the intensity of cyberattacks in the coming years.

Pat McFadden, Labour cabinet office minister responsible for UK cybersecurity, May 2025

According to Statista, the AI cybersecurity market is set to reach nearly $134bn by 2030, up from $24.3bn in 2023. Essentially this ETF is a play on that projected long-term growth.

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Looking for ETFs that have the potential to deliver strong long-term returns? Here are three standout products worth a closer look.

A focus on quality

One product that I see as a great ‘core holding’ is the iShares Edge MSCI World Quality Factor UCITS ETF (LSE: IWQU). This is a global product however, it only invests in high-quality companies that have stable earnings and strong balance sheets.

This focus on quality can make a difference to returns, especially in down markets. This year, for example, the ETF’s only down about 1% versus a drop of about 7% for the standard iShares global ETF.

Of course, the downside to this product is that it excludes plenty of well-known companies. For example, it doesn’t hold Amazon at present.

The fact that it excludes a lot of companies can lead to underperformance versus the market at some stages of the market cycle. All things considered however, I reckon the focus on quality is a major plus.

An ETF for the AI revolution

I’m a big fan of thematic ETFs, and one I like the look of today is the iShares AI Innovation Active UCITS ETF (LSE: IART). As its name suggests, this product focuses on companies that are active in the artificial intelligence (AI) space.

Over the next decade, the AI industry’s likely to get exponentially bigger as businesses and individuals adopt the technology to increase efficiency. With this ETF, investors can get access to companies at the heart of the revolution, such as Nvidia, Amazon, and Snowflake.

Investors do need to manage risk carefully here though. Today, AI’s still in its infancy and the growth story in the years ahead may not be linear (meaning that stock prices are likely to be volatile).

This ETF’s also quite new (it was only launched in February). So it doesn’t have a long-term track record.

Bigger than AI?

While AI‘s going to be big, one area of technology that could be even bigger is cybersecurity. Some experts believe that this could be a $2trn industry in the years ahead.

One ETF that’s focused on this theme is the Legal & General Cyber Security UCITS ETF (LSE: ISPY). This provides exposure to around 35 different cybersecurity stocks globally.

There are some great names in this ETF including the likes of CrowdStrike, Fortinet, and Palo Alto Networks. All of these companies are generating strong growth today as businesses scramble to protect themselves from dangerous cyber threats.

Again though, risk needs to be carefully managed here. Given its focus on one specific industry, this ETF isn’t well diversified.

And while the cybersecurity industry has a lot of long-term growth potential (and is also quite defensive in nature), cybersecurity stocks can be volatile. So with this ETF, position sizing is important.

The post 3 standout ETFs to consider for an ISA or SIPP in May appeared first on The Twelfth Magpie.

Now, as someone who’s been investing since the early 2000s, I’ve seen this kind of market activity before. With that in mind, here are four tips to get through the current turbulence.

Stay calm and stick to your strategy

When markets are tanking and there’s fear in the air, it’s crucial to stay calm and stick to your investment strategy. If you panic, you could end up making an irrational move that you’ll come to regret down the line.

Remember that market volatility is a normal part of investing. While stocks tend to provide great returns in the long term, they never go up in a straight line.

Think ahead

Speaking of the long term, now’s a good time to focus on it. Instead of thinking about what’s going to happen over the next month, think about where stock markets could go over the next decade (they almost always go up over 10-year periods) and how you could potentially set yourself up financially by making the right moves today.

It’s worth pointing out here that if you have a long-term horizon, you’re much better off buying shares at lower prices instead of higher ones. And right now, share prices are much lower than they were a few months ago.

Focus on big themes

As well as taking a long-term view, it could be smart to take a thematic approach to investing. Think about the industries that are poised to get much bigger in the years ahead and consider allocating some capital to them now while prices are low.

One industry that I believe is set for massive growth in the years ahead is cybersecurity. With cyberthreats continually becoming more sophisticated, I reckon spending on this area of technology is going to boom over the next decade.

Now, there are many stocks in this industry that could be worth considering today including the likes of CrowdStrike, Palo Alto Networks, and Fortinet. If someone is looking for broad exposure to the industry however, they may want to consider the Legal & General Cyber Security UCITS ETF (LSE: ISPY).

This provides exposure to a range of leading businesses in the cybersecurity industry. Overall, there are around 35 stocks in the ETF (including the three I mentioned above).

This isn’t a product I’d put my life savings into. Cybersecurity is a dynamic industry (threats are always evolving) meaning companies’ growth can fluctuate. Meanwhile, a lot of companies in this industry have high valuations. So, their share prices can be more volatile than the broader market.

Taking a long-term view, however, I believe this ETF has a lot of potential.

Manage risk

Finally, my last tip is – think about risk and don’t try to be a hero.

Consider drip-feeding capital into the market bit by bit (buying mainly on days when the market is down). This will ensure that if stocks fall further, you can still capitalise.

Remain diversified. ETFs like the one above can be a good way to spread out your capital.

And focus on high-quality companies that are going to be around in the future. Now isn’t the time to put your life savings into a speculative penny stock that could go bankrupt if economic conditions deteriorate.

The post I’ve been investing in the stock market for 25 years. Here are 4 tips to navigate the current volatility appeared first on The Twelfth Magpie.

Here, I’m going to highlight two theme-driven ETFs I like the look of right now. I think they could be worth considering for a diversified investment portfolio in February.

An ETF for the AI revolution

While AI stocks have experienced some turbulence recently, I continue to like the theme. Over the next decade, this technology‘s going to transform nearly every industry, creating a lot of opportunities for investors.

Now, one ETF that offers exposure here is the L&G Artificial Intelligence UCITS ETF (LSE: AIAG). This is a niche product from Legal & General that’s focused purely on AI stocks.

In total, it provides access to around 55 different companies. And I see that as a huge plus because, right now, we don’t know for sure who the real AI winners are going to be.

Another key feature of this ETF is that it doesn’t have massive weightings in specific stocks such as Nvidia or Alphabet (Google). This reduces risk for investors.

There are plenty of risks to consider, of course. One is that the AI industry is moving at a rapid speed and new companies/technologies are continually popping up. We saw this recently with Chinese AI start-up DeepSeek. Its emergence sent a lot of US AI stocks down.

Taking a long-term view however, I think this ETF will do well. Ongoing fees are reasonable at 0.49% a year.

Cybersecurity just became more important

Now, the emergence of DeepSeek’s low-cost AI model has definitely created uncertainty in some areas of the AI sector. For example, there are now some question marks in relation to long-term demand for Nvidia’s high-powered AI chips.

However, one thing we can be certain of is that, looking ahead, demand for cybersecurity will remain high. If anything, the emergence of Chinese AI models will actually increase demand for sophisticated cybersecurity solutions.

One ETF I like for exposure here is the Legal & General Cyber Security UCITS ETF (LSE: ISPY). It provides broad, global exposure to the cybersecurity industry. Overall, there are around 35 stocks in the ETF. At the end of 2024, top holdings included Broadcom, Cloudflare, and CrowdStrike.

It’s worth pointing out that this ETF’s been around for a while now. And it’s done pretty well over the long run. For the five-year period to the end of 2024, it returned 71% (in US dollar terms), or 11.3% a year. However, past performance isn’t an indicator of future returns.

If the tech sector was to experience a major pullback for some reason (eg rising interest rates), this product could underperform. There’s also some company-specific risk here as this ETF does have quite large weightings in certain stocks.

I believe it’ll do well over the next five years on the back of the growth of the cybersecurity market however. Ongoing fees are 0.69% a year.

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