The FTSE 100 index seems to be prefer it’s going to finish 2026 in constructive territory. 12 months thus far, it’s up 9%, placing the Footsie on target for its sixth consecutive yr of good points.
Spectacular stuff, for certain. Nonetheless, there are some exchange-traded funds (ETFs) which have blown the blue-chip index out of the water.
One is L&G Cyber Safety ETF (LSE:ISPY). To date in 2026, this Authorized & Common fund with the cool ticker is up about 37%.
Let’s take a more in-depth take a look at this thematic ETF to see why it’s crushing the FTSE 100.
Surging shares
As a reminder, ETFs supply traders low-cost portfolio publicity to many various progress themes, together with semiconductors, healthcare innovation, rising markets, and extra.
The theme of the L&G Cyber Safety ETF is on the tin. Many shares on this sector are up considerably this yr, explaining why the ETF is definitely outperforming the FTSE 100 (which has little or no pure-play cybersecurity publicity).
Prime holdings embody Palo Alto Networks (up 69% yr thus far), CrowdStrike (+59%), Fortinet (+90%), and Cisco Methods (+49%). The biggest holding immediately although is BlackBerry, which has rocketed 110% in 2026.
That final identify is a blast from the previous, reminding me of the BlackBerry Messengers. However the Canadian agency exited the cellphone enterprise years in the past, pivoting correctly into enterprise software program, cybersecurity, and Web of Issues working programs.
Not all holdings have executed nicely, although. Qualys, Rubrik, and Gen Digital have all underperformed the market this yr, whereas Broadcom is down 22% since early June.
However that is the wonder about thematic ETFs — you don’t have to select the person winners. So long as the sector outperforms, the returns ought to handle themselves.
Skynet vibes
Why have traders turned bullish on cybersecurity? Properly, I’m certain most can have learn in regards to the challenges fast AI developments are posing for the digital security of companies and governments worldwide.
Mainly, there’s an AI arms race happening, the place unhealthy actors are utilizing the know-how to plot extra refined cyber assaults, whereas the likes of Palo Alto Networks and CrowdStrike are benefitting by promoting prospects extra AI-driven defence capabilities.
In current days, we’ve realized about an AI agent from OpenAI that went rogue and autonomously hacked a startup’s web site. Studying that jogged my memory of the malicious AI system Skynet from Terminator 2!
Towards this backdrop, cybersecurity spending has turn into non-negotiable.
Price a glance?
Is the ETF nonetheless value contemplating close to an all-time excessive? Doubtlessly, although it’s way more riskier than it was initially of the yr as a result of valuations within the sector are lots greater now.
CrowdStrike and Palo Alto, for instance, are buying and selling at 147 and 77 occasions ahead earnings, respectively. So these shares seem fairly frothy for the time being.
Have been tech shares to have a meltdown sooner or later, this ETF would undergo, with 97% of its holdings within the tech sector.
Alternatively, AI seems to be to be a multi-decade supportive pattern for the cybersecurity sector. In order a small a part of a well-rounded portfolio, the ETF may nonetheless do a job (I’m holding onto my shares).
As issues stand although, I’m eyeing up different alternatives with any new cash I’ve to take a position.
Must you make investments £5,000 in L&G Cyber Safety ETF proper now?
When investing skilled Mark Rogers and his group have a inventory tip, it might probably pay to pay attention. In spite of everything, the flagship Twelfth Magpie Share Advisor e-newsletter he has run for practically a decade has supplied 1000’s of paying members with prime inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to contemplate shopping for. Wish to see if L&G Cyber Safety ETF made the checklist?
Ben McPoland owns shares in CrowdStrike, L&G Cyber Safety ETF, and Authorized & Common.
