ETF Education Report: FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR)

What this ETF is trying to do

The FIRST TRUST NASDAQ CYBERSECURITY ETF (CIBR) is an exchange-traded fund that focuses on the cybersecurity industry. It holds a variety of companies involved in protecting digital information. This report uses data as of October 6, 2026.

What the numbers show

This ETF has seen significant growth in its share price over different time periods. Here is a breakdown of the performance:

• Year-to-Date (YTD): The price return is approximately 51.34%. When including distributions, the YTD total return is approximately 51.73%.

• One-Year: The one-year price return is approximately 39.76%. The one-year total return is approximately 40.52%.

• Three-Year: The three-year price return is approximately 135.73%. The three-year total return is approximately 138.77%.

To understand the price change over the last year, we can look at the estimated price from roughly one year ago, which was $77.37, compared to the current price of $108.13.

Income and distribution explanation

Some investors look for "distributions," which are cash payments made by the ETF. CIBR has a distribution yield of approximately 0.36%. This means the cash distributed is small relative to the ETF's price. The trailing distributions were approximately $0.39 per share, and these are usually paid out quarterly (four times a year).

It is important to remember that a distribution yield is not the same as total return. Total return includes both the change in share price and any cash distributions received.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Top Holdings

The following are the top holdings in this ETF (note that this is a partial list):

• Crowdstrike Holdings Inc Class A: 8.89%

• Fortinet Inc: 8.11%

• Palo Alto Networks Inc: 8.07%

• Cisco Systems Inc: 7.56%

• Broadcom Inc: 7.36%

• Cloudflare Inc: 4.42%

• Okta Inc Class A: 4.42%

• F5 Inc: 3.61%

• Zscaler Inc: 3.59%

• Rubrik Inc Class A Shares: 2.68%

Pros

• The ETF has shown strong positive price returns over the last year and three years.

• The erosion-risk measurements suggest no detected price erosion.

Cons

• The distribution yield is relatively low, which may not appeal to investors seeking high levels of regular cash income.

Beginner takeaway

CIBR tracks companies in the cybersecurity sector. While it has provided strong price growth recently, investors should distinguish between "price return" (how much the share price went up) and "total return" (the price change plus any cash distributions). Always remember that past performance does not guarantee future results.