Cybersecurity ETF WCBR surges 20% YTD, driven by AI demand and fund restructuring.

The WisdomTree Cybersecurity Fund (WCBR) rose about 20% year-to-date, outperforming the S&P 500's 8% gain, fueled by a shift in narrative that AI boosts cybersecurity spending rather than disrupts it. A March 2026 index methodology change refocused the fund on leading cybersecurity platforms, while a sharp drop in short interest and institutional buying added momentum. Despite the recent surge, WCBR trades at a high P/E of 37 and has historically lagged the broader market over five years, suggesting caution. Investors should watch enterprise security spending reports and market liquidity before expecting further gains.