This ETF Is Obliterating the S&P 500 and the Nasdaq-100 in 2026, but a Crash Might Be on the Horizon
Some of the top holdings in the First Trust Nasdaq Cybersecurity ETF are trading at unsustainably high valuations.
Overview
Artificial intelligence (AI) is still in its infancy, but it's already one of the most revolutionary technologies humanity has ever created. It has the potential to significantly increase economic productivity, help researchers develop new medicines and materials, or generate more accurate global weather forecasts in minutes, among many other things.
But AI can also be highly dangerous in the wrong hands. Bad actors are using it to stage sophisticated cyberattacks that could have devastating consequences. As a result, companies and organizations are turning more heavily to cybersecurity providers. Investors, in turn, have piled into cybersecurity stocks, fueling a whopping 42% return in the First Trust Nasdaq Cybersecurity ETF (NASDAQ: CIBR) so far in 2026.
Details
The exchange-traded fund (ETF) is crushing the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq-100 indexes, which are sitting on year-to-date gains of 11% and 16%, respectively. But here's why the recent rally in cybersecurity stocks could end with a crash.
Source
Originally published at www.fool.com.