"WCBR holds 24 positions with 100% of assets in information technology, charging 0.45% annually for exposure to pure-play cybersecurity names. The top holding is Fastly at 11.12%, followed by Palo Alto Networks at about 9% and Akamai at about 7%."
"WCBR's holdings are high-multiple growth stocks. Palo Alto Networks trades at a forward P/E of 41x, while CrowdStrike carries a forward P/E of 67x. Valuations like these are acutely sensitive to real interest rates."
"The VIX currently sits near 26.8, in the elevated uncertainty zone, and has climbed roughly 37% over the past month. Elevated volatility and rate uncertainty compress growth stock multiples in tandem."
The WisdomTree Cybersecurity Fund (WCBR) has seen a 5% decline year-to-date, despite rapid advancements in agentic AI. The fund consists of 24 positions, all in information technology, with a focus on cybersecurity. Fastly is the top holding, significantly impacting the fund's performance. The macroeconomic environment, particularly interest rates and federal spending uncertainty, poses risks to high-multiple growth stocks within the fund. Elevated volatility and interest rate concerns compress growth stock valuations, while potential Federal Reserve rate cuts could lead to a quick repricing of holdings.
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