WCBR ETF

AI remains the most prominent theme in the technology sector. But that doesn't diminish the relevance of other important tech growth outlets, including cybersecurity.

I maintain a hold rating on WCBR due to its high valuation and mixed technical situation despite bullish seasonal trends. WCBR has underperformed the S&P 500 since mid-Q1 2023, with notable setbacks from Palo Alto Networks and CrowdStrike. The ETF's high concentration risk, low average daily volume, and high bid/ask spread suggest cautious trading with limit orders.

Broadly speaking, cybersecurity equities are languishing this year. Throw in investors' intense focus on artificial intelligence (AI) stocks and it's understandable that some market participants aren't paying attention to cybersecurity opportunities.

Cybersecurity is crucial in a world reliant on technology, with vulnerabilities threatening businesses and governments. The WisdomTree Cybersecurity Fund offers focused access to high-growth cybersecurity companies, led by Team8, a global venture group. The fund's holdings include top cybersecurity companies like HashiCorp, Palo Alto Networks, and Datadog, with global exposure and peer comparison to First Trust NASDAQ Cybersecurity ETF.

When assessing software companies, it is crucial to consider both revenue growth and profitability as they can affect the possibility of future investment gains.

WisdomTree Cybersecurity Fund ETF is a pure-play cybersecurity fund with a unique stock selection methodology. The ETF has a short track record and a high-volatility, high-risk portfolio. Consensus estimates suggest potential upside of 13% by the end of 2024, with strong revenue and EPS growth in the cybersecurity sector.

2024 has well and truly begun and with it, investors can consider some of the big takeaways from last year. Megacap tech lifted the entire market in 2023, but it may be more helpful to think about some of the smaller tech slices and how they did.

By Christopher Gannatti, CFA, Global Head of Research   One of the biggest themes across megatrend investing—at least, in our opinion—is cybersecurity. Every time a new technology is introduced, it simultaneously needs to be secured.

For investors seeking momentum, WisdomTree Cybersecurity Fund ( WCBR ) is probably on radar. The fund just hit a 52-week high and is up 81.5% from its 52-week low price of $14.16/share.