Most recently, Stryker (NYSE: SYK) was targeted by pro-Iranian hackers in a significant cyberattack. The company confirmed it was dealing with a disruption tied to its Microsoft environment, noting that while there was no indication of ransomware or malware, the attack still impacted global operations. Stryker emphasized that it had business continuity measures in place and was working quickly to assess the full scope and impact of the breach.

Even without ransomware, disruptions like this can be costly and dangerous—especially for a company involved in medical technology.

Critical Infrastructure and Satellites Are the Next Targets

At the same time, concerns are escalating at the national level. According to reporting from CNN, the U.S. intelligence community has issued a wave of private warnings to both government agencies and private-sector organizations. The message is clear: increase vigilance and strengthen defenses against potential cyberattacks linked to Iran.

After all, cyber warfare has increasingly become a preferred tool because it allows adversaries to disrupt critical systems without direct military confrontation.

What’s even more alarming is the possibility that these attacks could expand beyond corporate networks. There are growing concerns that Iran could escalate its efforts by targeting U.S. civil infrastructure—systems that millions of people rely on every day.

Experts are also sounding the alarm about space-based vulnerabilities. According to Cybersecurity Insiders, former White House CIO Teresa Payton has warned about the rising risk of attacks on satellites used for global communications. Such a move would represent a major escalation, with potentially far-reaching consequences for everything from internet access to financial transactions and emergency communications.

It’s another example of how poorly prepared we are for attacks.

Cybersecurity Spending Is Set to Surge Globally

And, as threats grow more sophisticated and frequent, spending on cybersecurity solutions is expected to rise significantly.

That creates a compelling case for investing in companies at the forefront of digital defense. Industry leaders like CrowdStrike, Palo Alto Networks, and Fortinet are all positioned to benefit from increased demand for advanced security solutions.

BUG ETF Offers Broad Exposure to Cybersecurity Leaders

With an expense ratio of 0.51%, the Global X Cybersecurity ETF (NASDAQ: BUG) invests in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices.

Since the start of the war with Iran, the ETF has run from about $24.15 to $26.63 so far.

IHAK ETF Provides Diversified Cybersecurity and Tech Access

With an expense ratio of 0.47%, the iShares Cybersecurity and Tech ETF (NYSEARCA: IHAK) tracks the investment results of an index composed of developed and emerging market companies involved in cybersecurity and technology, including cybersecurity hardware, software, products, and services.

The fund has 38 holdings with some of the top names being Clear Secure, Akamai Technologies, CACI International, Sentinel One, Fortinet, and Okta.

Since the war with Iran began, the IHAK ETF has run from about $41 to $45.82.

Cybersecurity ETFs Offer a Simple Way to Trade Rising Threats

In a world where cyber threats are becoming more frequent and more dangerous, cybersecurity is no longer optional—it’s essential. And as governments and businesses scramble to strengthen their defenses, the companies providing those solutions are likely to see sustained growth. For investors, that makes cybersecurity a smart trade. All of which we can potentially profit from using inexpensive ETFs such as BUG and/or IHAK.

Quantum computing could be “humanity’s biggest breakthrough since the discovery of fire,” say analysts at Bank of America.

Nvidia CEO Jensen Huang said the industry is now at an inflection point, adding that the world is “within reach” of being able to use quantum computers. 

And while quantum computing holds the promise of solving critical problems that conventional computers cannot, there are plenty of dangers to be aware of.

In fact, as exciting as quantum computing may sound, it could also have a severe, negative impact on just about every part of everyday lives including banking systems, email communications, cryptocurrencies, communications, AI systems, and national defense.

Look at cryptocurrencies, for example. 

Quantum computers would be able to solve the mathematical problems solved during Bitcoin mining much faster than classical computers. If that were to happen, it could alter the distribution of mining power and potentially impact the decentralized nature of certain cryptocurrencies.

Three, quantum computers could potentially break codes that keep cryptocurrencies safe, and even decrypt private keys from public keys. All of which allows bad actors to control cryptocurrencies.

Unfortunately, we can’t just wait and see what happens. That’s why this is such a unique opportunity for cybersecurity stocks such as Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), Okta (NASDAQ: OKTA), and Zscaler (NASDAQ: ZS).

The total addressable market for cybersecurity is large enough to accommodate many of these stocks. However, ultimately, there will be consolidation in the market. That’s why it can be a good idea to diversify your exposure to cybersecurity stocks via cybersecurity ETFs, such as:

Global X Cybersecurity ETF (BUG)

The Global X Cybersecurity ETF (BUG) is down 1.22% in 2025 as of this writing. However, that’s a little deceptive. Cybersecurity stocks have been falling in sympathy with the broader technology sector.

But the reason for the sell-off has more to do with valuation than with concerns about useful applications. CrowdStrike CEO George Kurtz made it clear that the threat posed by agentic AI is already expanding the threat environment these companies have to deal with.

That’s why it helps to zoom out. In the last three years, the BUG ETF has delivered a total return of over 38% and in the last five years, the total return is over 43%.

“The Global X Cybersecurity ETF (BUG) seeks to invest in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices,” says Global X.

As of this writing, the company has just under $1 billion ($999.28 million) of assets under management (AUM) and has a net expense ratio of 0.51%.

iShares Cybersecurity and Tech ETF (IHAK)

Similar to the BUG ETF, the iShares Cybersecurity and Tech ETF (IHAK) is up just 0.77% year-to-date as of this writing. That may be due to the fund’s narrower focus on cybersecurity hardware and software.

According to iShares, “The iShares Cybersecurity and Tech ETF seeks to track the investment results of an index composed of developed and emerging market companies involved in cyber security and technology, including cyber security hardware, software, products, and services.”

In the last three-year and five-year time periods, the performance of the IHAK ETF has been almost lock step with the BUG ETF with total returns of 39% and 45% respectively. The fund has over $876 million in assets under management and an expense ratio of 0.47%.

The Last Word on Cybersecurity Stocks

Quantum computing promises historic breakthroughs, but it also introduces powerful new risks that traditional cybersecurity cannot handle. With cyber threats set to accelerate, cybersecurity ETFs like BUG and IHAK offer diversified, long-term exposure to industry leaders positioned to benefit as enterprises, governments, and consumers rush to upgrade their defenses.