Cybersecurity ETF - Global X ETFs - Australia

BUGG


Cybersecurity ETF

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

The Cybersecurity market size is estimated at USD 203.78 billion in 2024, and is expected to reach USD 350.23 billion by 2029.1

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 (Mordor Intelligence, 2024) https://www.mordorintelligence.com/industry-reports/cyber-security-market

Product Information As of 17 Apr 2024

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 17 Apr 2024

NAV/Unit (A$) 10.76500000
Currency (NAV) AUD
Shares Outstanding 400,000
AUM (A$) 4,305,992.44
NAV History File View

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 28 Mar 2024

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

Performance Table As of 17 Apr 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -5.44% -5.42% -0.03% 0.65%
3 Months -4.45% -4.12% -0.33% 0.76%
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception 7.65% 8.34% -0.69% 0.77%

Top Holdings As of 18 Apr 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
8.15 CROWDSTRIKE HO-A BJJP138 293.69 767 350,818
6.02 GEN DIGITAL INC BJN4XN5 20.37 8,165 259,027
5.87 CHECK POINT SOFT 2181334 158.09 1,026 252,609
5.69 FORTINET INC B5B2106 64.66 2,434 245,106
5.61 PALO ALTO NETWOR B87ZMX0 277.33 559 241,438
5.51 ZSCALER INC BZ00V34 172.96 881 237,312
5.25 OKTA INC BDFZSP1 93.80 1,547 225,991
5.18 SENTINELONE IN-A BP7L1B8 20.63 6,940 222,975
5.17 CYBERARK SOFTWAR BQT3XY6 235.98 606 222,713
4.96 VARONIS SYSTEMS BJZ2ZR5 43.51 3,154 213,721
4.95 TREND MICRO INC 6125286 7,715.00 2,700 209,765
4.84 DARKTRACE PLC BNYK8G8 4.42 24,344 208,507
4.78 TENABLE HOLDINGS BF7J7N6 44.38 2,976 205,692
4.47 A10 NETWORKS INC BKQVBN6 12.80 9,664 192,648
4.05 QUALYS INC B7XJTN8 162.75 688 174,384
3.84 RADWARE LTD 2494548 16.14 6,570 165,145
3.53 RAPID7 INC BZ22CY6 43.80 2,230 152,116
2.83 BLACKBERRY LTD BCBHZ42 2.76 28,341 121,821
2.46 AHNLAB INC 6406271 64,100.00 1,472 105,958
2.07 ONESPAN INC BFNSSD4 9.86 5,804 89,125
2.00 DIGITAL ARTS INC 6543587 4,260.00 2,000 85,797
1.21 TELOS CORP BLDDYL1 3.30 10,103 51,923
1.15 HENNGE KK BKWBPS3 1,046.00 4,600 48,453
0.27 ARQIT QUANTUM IN BNYCBL0 0.50 15,074 11,621
Holdings are subject to change.

Sector Breakdown As of 18 Apr 2024

Sector Weight (%)
Information Technology 99.9
Other/Cash 0.1

Country Breakdown As of 18 Apr 2024

Country Weight (%)
United States 66.5
Israel 14.9
Japan 8.1
Britain 5.1
Canada 2.8
South Korea 2.5
Other/Cash 0.1

Research

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.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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