Cybersecurity ETF - Global X ETFs - Australia
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BUGG

Cybersecurity ETF

Invest in BUGG
Overview Performance Holdings & Characteristics Research Documents FAQs

Reasons to Consider BUGG

Prolific Cybercrime Creates Opportunity

Increasing reliance on digital ecosystems has left individuals, businesses, and governments vulnerable to the exponential rise of cyber threats.

Demand Powers Growth Potential

An expanding investment opportunity as current cybersecurity initiatives only service around 10% of the US$2 trillion total addressable market.1

Industry-Leading Companies

Significant exposure to global pure-play companies that have at least 50% revenue derivation from cybersecurity activities – resulting in minimal overlap with broad indices such as the S&P 500 and Nasdaq 100.

1 McKinsey & Company. (October 2022). New survey reveals $2 trillion market opportunity for cybersecurity technology and service providers. Available here: https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/cybersecurity/new-survey-reveals-2-trillion-dollar-market-opportunity-for-cybersecurity-technology-and-service-providers.

Product Information As of 5 Dec 2023

Inception Date 11 Sep 2023
Management Costs (% p.a.) 0.47
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 5 Dec 2023

NAV/Unit (A$) 10.55050000
Currency (NAV) AUD
Shares Outstanding 100,000
AUM (A$) 1,055,048.45

Product Summary

The Global X Cybersecurity ETF, often referred to as BUGG, seeks to invest in companies that stand to benefit from the increased adoption of cybersecurity technology, particularly those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

Product Objective

The Global X Cybersecurity ETF (ASX: BUGG) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index.

Trading Details

Ticker BUGG
Bloomberg Code BUGG AU Equity
ISIN AU0000274318
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited
Trustee Global X Management (AUS) Limited

Benchmark Information

Benchmark Indxx Cybersecurity Index
Provider Indxx LLC
Ticker IBUGT

Distributions As of 31 Oct 2023

12-Month Yield 0.00%
12-Month Franking Level 0.00%
Distribution Frequency Semi-Annually

Performance Table As of 5 Dec 2023

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 14.51% 14.55% -0.04% 0.02%
3 Months -- -- -- --
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception 5.51% 5.59% -0.08% 0.04%

Top Holdings As of 6 Dec 2023

Full Holdings (.xlsx)
Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
6.63 CROWDSTRIKE HO-A BJJP138 238.97 192 69,916
6.55 GEN DIGITAL INC BJN4XN5 22.25 2,039 69,132
6.32 ZSCALER INC BZ00V34 198.91 220 66,682
5.92 PALO ALTO NETWOR B87ZMX0 292.78 140 62,460
5.75 TREND MICRO INC 6125286 8,281.00 700 60,046
5.39 CHECK POINT SOFT 2181334 145.74 256 56,852
5.05 VARONIS SYSTEMS BJZ2ZR5 44.42 787 53,270
5.01 SENTINELONE IN-A BP7L1B8 20.00 1,733 52,815
4.61 FORTINET INC B5B2106 52.52 608 48,659
4.59 QUALYS INC B7XJTN8 184.79 172 48,433
4.54 RAPID7 INC BZ22CY6 56.38 557 47,853
4.45 TENABLE HOLDINGS BF7J7N6 41.46 743 46,941
4.45 CYBERARK SOFTWAR BQT3XY6 203.90 151 46,916
4.44 A10 NETWORKS INC BKQVBN6 12.75 2,413 46,881
4.05 OKTA INC BDFZSP1 72.69 386 42,756
4.04 BLACKBERRY LTD BCBHZ42 3.95 7,077 42,597
3.88 DARKTRACE PLC BNYK8G8 3.50 6,079 40,891
3.80 RADWARE LTD 2494548 16.03 1,641 40,084
2.87 AHNLAB INC 6406271 70,600.00 367 30,115
2.30 DIGITAL ARTS INC 6543587 4,600.00 500 23,825
2.09 ONESPAN INC BFNSSD4 10.00 1,449 22,080
1.54 TELOS CORP BLDDYL1 4.26 2,507 16,274
1.45 HENNGE KK BKWBPS3 1,243.00 1,200 15,451
0.28 ARQIT QUANTUM IN BNYCBL0 0.52 3,741 2,961
Holdings are subject to change.

Sector Breakdown As of 6 Dec 2023

Sector Weight (%)
Information Technology 100.0

Country Breakdown As of 6 Dec 2023

Country Weight (%)
United States 65.8
Israel 13.6
Japan 9.5
Britain 4.2
Canada 4.0
South Korea 2.9

Research

Introducing BUGG: The Cybersecurity Investment Solution

Read More

Australian Cybercrime Highlights Need for Cybersecurity Investment

Read More

Three Cybersecurity Companies Guarding Your Data

Read More

Documents

FAQs

  • Why invest in cybersecurity?

    Cybersecurity is an important sector that will continue to grow as cyber threats become more prolific alongside the development of more advanced technologies such as generative artificial intelligence (AI) and the cloud. For investors, an expanding investment opportunity exists as current cybersecurity initiatives only service around 10% of the US$2 trillion total addressable market.

    The Global X Cybersecurity ETF (ASX: BUGG) aims to capture this megatrend by tracking the performance of pure-play global cybersecurity companies which are dedicated to this space through a strict revenue screen.

  • What are pure-play cybersecurity companies?

    Pure-play cybersecurity companies are specialised businesses whose primary objective is to protect their clients from cybercrimes, data breaches and malicious attacks. They do so by dedicating the majority of resources to solutions to safeguard organisations’ hardware, software, and data. These companies play a vital role in ensuring the security and privacy of online assets and information.

  • How are the companies in the index identified and weighted?

    The Indxx Cybersecurity Index is designed to provide exposure to companies that generate at least 50% of revenue from cybersecurity activities, including, but not limited to, the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. There can be a maximum of 40 companies in the index, each capped at a 6% weight and a minimum of 0.3%. Companies are weighted according to their market capitalisation (minimum of US$200 million). The index is rebalanced, and distributions are paid semi-annually.

  • What are the benefits of using an ETF to access cybersecurity?

    An ETF allows diversified access to cybersecurity companies at a low cost and reduced risk compared to individual stock picking. For example, the Global X Cybersecurity ETF (ASX: BUGG) seeks to invest in pure-play cybersecurity companies that stand to benefit from the increased adoption of cybersecurity technology, particularly 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.

  • How can you use BUGG in a portfolio?

    • As a satellite exposure to gain exposure to growing demand and investment in the cybersecurity industry.
    • As a thematic tilt towards megatrends, including digitalisation and online connectivity.
    • To diversify exposure away from major technology stocks in the S&P 500 and Nasdaq 100.

Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide to future performance. Any advice provided by Global X Management (AUS) Limited (“Global X”) is general advice and does not take into account your personal objectives, financial situation or needs. You should consult an independent investment adviser prior to making an investment in order to determine its suitability to your circumstances. This material may contain links to third party websites. Global X does not control and is not responsible for the information contained within third party websites. None of these links imply Global X’s support, endorsement or recommendation of any other company, product or service.

Global X Management (AUS) Limited ACN 150 433 828 AFSL No 466778

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