However, some pockets are gaining strong momentum. 

There are several themes and sectors capturing strong tailwinds in the back half of 2026. 

Here are some ASX ETFs ignoring the broader market downturn and charging ahead. 

Cybersecurity ASX ETFs

One theme that is outperforming right now is cybersecurity. 

The strong rise in cybersecurity-related stocks over the past six months reflects a broader shift in how investors view the impact of AI on the sector.

Initially, there were concerns that AI would make cybersecurity less valuable by automating vulnerability detection and reducing the need for traditional security solutions. 

However, the market has increasingly recognised that AI is also making cyberattacks more sophisticated, scalable and difficult to defend against, creating greater demand for cybersecurity products and services. 

The rapid adoption of AI, cloud computing and digital infrastructure is expanding the potential attack surface for businesses, while growing cyber threats are encouraging companies and governments to increase security spending. 

This has strengthened expectations for long-term revenue and earnings growth across the cybersecurity industry, particularly among leading providers, and has driven a significant re-rating of the sector. 

Two beneficiaries of this trend are BetaShares Global Cybersecurity ETF (ASX: HACK) and Global X Cybersecurity ETF (ASX: BUGG). 

These funds have risen by 37% and 47% in the last 6 months and could be set up for long-term success if these tailwinds continue. 

Global healthcare and biotech ASX ETFs

The healthcare and biotechnology sector has benefited from a combination of strong innovation, improving investor sentiment and the potential for significant new markets. 

Advances in areas such as obesity treatments, oncology, gene therapy and precision medicine are creating opportunities for companies to develop new therapies with very large commercial markets, while the rapid adoption of AI in drug discovery and clinical development is raising expectations that medicines can be developed more efficiently.

These tailwinds have benefited ASX ETFs BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) and Global X S&P Biotech ETF (ASX: CURE). 

Both have enjoyed significant momentum in recent months, and could be top buys heading into the back part of 2026. 

Gaming and Esports 

After a rough first 6 months of the year, another ASX ETF harnessing strong momentum is Betashares Video Games And Esports ETF (ASX: GAME). 

It has risen 13% since late July thanks to renewed investor confidence in the long-term growth of interactive entertainment.

The industry continues to benefit from the shift towards digital distribution, recurring revenue through subscriptions and in-game purchases, and the growing global audience for gaming, while major new game releases can create significant bursts of revenue and engagement.

At the same time, the sector is increasingly benefiting from advances in AI, which have the potential to reduce development costs, improve game creation and enable more personalised and dynamic gaming experiences.

The post These ASX ETFs are generating big momentum in the second half of 2026 appeared first on The Motley Fool Australia.

Global conflict, inflation and high interest rates have dominated headlines this year. 

These have weighed on markets here in Australia. 

As a result, the S&P/ASX 200 Index (ASX: XJO) has risen just 0.4% year to date. 

However, there have been several ASX ETFs that have shaken headwinds and raced ahead of Australia's benchmark index. 

Here are three in particular that have performed well this year. 

Global X Semiconductor ETF (ASX: SEMI)

An emerging theme this year has been the surge in semiconductor-related companies. 

A semiconductor is a material like silicon that can be precisely controlled to conduct or block electricity. This lets engineers build the tiny transistor switches that make up computer chips. 

It's critical to the AI buildout because every bit of AI training and inference runs on these chips.

This ASX ETF has harnessed this momentum and enjoyed a rise of 66% year to date. 

The fund from Global X seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. 

Investors have been using a "picks and shovels" approach to AI, which has benefited this fund. 

During a gold rush, the safer bet isn't panning for gold yourself, it's selling the pickaxes to everyone who is. 

Investors are applying the same logic to AI. They are essentially moving money into companies that supply the AI buildout rather than betting on which AI application or model wins.

Global X Cybersecurity ETF (ASX: BUGG)

Another strong-performing fund this year has been this cybersecurity-focused ETF.

It seeks to invest in companies that stand to benefit from the increased adoption of cybersecurity technology, particularly those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

Increasing reliance on digital ecosystems has left individuals, businesses, and governments vulnerable to the exponential rise of cyber threats, and this has led to increased investment in the sector. 

This growth has led to a 21% rise for this fund year to date. 

Betashares Global Momentum ETF (ASX: GTUM)

This ASX ETF is one of the newest funds on the ASX – listing in February this year. 

In just a short span, it has made a big impact, rising 18% in that period. 

GTUM aims to track the performance of an index (before fees and expenses) comprising a portfolio of global developed markets companies (excluding Australia) with above average momentum scores, as measured by risk-adjusted returns.

The Index ranks stocks within the eligible universe based on 6 and 12-month risk adjusted returns to target more sustainable positive momentum over sharp, highly volatile run-ups. 

Stocks displaying consistently strong positive momentum over recent history are rewarded with higher weights in the index.

The post 3 of the best ASX ETFs to own right now appeared first on The Motley Fool Australia.

ETF providers are consistently coming up with newly designed funds to track niche areas of the market. 

For examples of this, look no further than the recently listed Betashares Space Industry ETF (ASX: RCKT). 

After listing in mid-May, the fund has already rocketed (excuse the pun) 13%. 

However it wasn't the only thematic fund to perform well during May. 

Why target thematic ASX ETFs?

Thematic ASX ETFs can offer investors a simple way to back powerful long-term trends. 

Popular themes include artificial intelligence and cybersecurity to clean energy and biotech.

Rather than picking individual winners, investors gain exposure to a basket of companies positioned to benefit from a particular theme. 

This can help diversify and spread risk while capturing broad industry growth. 

These funds can also provide valuable insight into market sentiment, as strong inflows often signal growing investor confidence in a sector or economic trend. 

However, thematic investing is not without risks. 

Popular themes can become crowded, valuations may become detached from fundamentals, and trends that appear transformative today may fail to deliver the expected returns. 

With that in mind, here were three of the top performing funds during May. 

Global X Cybersecurity ETF (ASX: BUGG)

This ASX ETF was a market winner during the month of May. 

In the last four weeks, it has risen an astonishing 42%. 

The fund seeks to invest in companies that stand to benefit from the increased adoption of cybersecurity technology, particularly those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

At the time of writing, it is made up of roughly 28 holdings, with the majority based in the US. 

Global X China Tech ETF (ASX: DRGN)

Another high performing ASX ETF during May was the China focussed fund from Global X. 

It has risen more than 13% over the last 4 weeks, driven by semiconductor and AI tailwinds. 

The fund offers access to 20 leading Chinese technology companies listed in Hong Kong and Mainland. With a rules-based selection process across 15 core sectors including semiconductors, robotics, software, and internet platforms, DRGN captures China's strategic push into self-sufficient innovation.

Global X Semiconductor ETF (ASX: SEMI)

It has been a similar story for this Semiconductor focussed ASX ETF. 

It has risen by more than 25% in the last month. 

The fund seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

The post What are the best performing thematic ASX ETFs right now? appeared first on The Motley Fool Australia.

Looking at indexes like the S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) over the last 5 years or so, it's clear that those that buy and hold for the long term, are able to weather the storm and come out the other side. 

Despite a global pandemic, tariff turmoil, and international conflicts, these markets remain 40%-80% higher than they were 5 years ago. Both are currently flirting with record highs.

But with markets hovering around record highs, where do we find value?

Here are three ASX ETFs I am monitoring. All three are down this year, but I believe they could reward long-term investors. 

iShares S&P Small-Cap ETF (ASX: IJR)

The fund aims to provide investors with the performance of the S&P Small-Cap 600. 

It has fallen more than 8% year to date. 

According to Reuters, the small-cap equity funds segment suffered the biggest weekly net sales since December 18, approximately $5.2 billion. 

I believe these macro trends can still bring more short-term volatility for small-cap companies. 

However, this fund gives long-term investors an opportunity to gain exposure in small-cap companies without the same risk that typically comes with this type of investment. 

After a poor year, it now sits well below its all-time high.

Despite this, the fund has provided an average annual return of 9.41% over the last 10 years. 

Global X Cybersecurity ETF (ASX: BUGG)

As the name suggests, this fund offers exposure to companies that stand to benefit from the increased adoption of cybersecurity technology. 

Specifically, it offers exposure to those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

It is a relatively new fund, first listed in September 2023. Since then, it has risen an impressive 21.92%. 

However, it is down more than 5% this year. 

I believe this dip offers value for investors aiming to get exposure to the global cybersecurity market set to play a significant role in the global economy for years to come.

According to Global X, the Cybersecurity Market size is estimated at USD 203.78 billion in 2024, and is expected to reach USD 350.23 billion by 2029.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

MOAT gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages, according to Morningstar's equity research team. 

It has fallen more than 7% so far this year. 

Despite a poor year, it has brought investors annualised returns of more than 10% over the last 10 years, and I believe it is slightly undervalued considering the quality of its portfolio. 

It includes blue-chip companies like Boeing, Walt Disney, Alphabet, Campbell's Company, and Nike. 

The post Long term bargains: Could these ASX ETFs be undervalued? appeared first on The Motley Fool Australia.

The Betashares Cybersecurity ETF has been on the ASX for just over seven years. Over that period, it has delivered some impressive performance returns for its investors since its inception in August 2016. As of 31 August, HACK investors have enjoyed an average annual return of 16.72% since inception.

So it's no surprise to see that across those seven years that have delivered such impressive performance metrics, and with almost no competition, the HACK ETF now has around $781 million in net assets under management.

But it now seems that the BetaShares Global Cybersecurity ETF's monopolistic stranglehold on this corner of international markets has come to an end.

Yesterday, the ASX welcomed a new cybersecurity ETF to its boards. The Global X Cybersecurity ETF (ASX: BUGG) launched at $10 a unit and is trading at $9.90 at present. It seems that having a cybersecurity ETF on the ASX means finding a competing ticker code too. HACK is one of the best, but BUGG certainly gives it a run for its money.

So how does this new cybersecurity ETF compare to the Betashares veteran?

How does the HACK ETF measure up against its new BUGG competitor?

Well, the HACK portfolio tracks the Nasdaq Consumer Technology Association Cybersecurity Index. At present, the fund contains 35 underlying holdings, which are dominated by the following cybersecurity shares:

• Palo Alto Networks Inc (NASDAQ: PANW) at 6.5% of the HACK portfolio
• Infosys Ltd (NASDAQ: INFY) at 6.4%
• Cisco Systems Inc (NASDAQ: CSCO) at 6.4%
• Broadcom Inc (NASDAQ: AVGO) at 5.9%
• Fortinet Inc (NASDAQ: FTNT) at 5.2%

In contrast, the Global X Cybersecurity ETF tracks a different index in the Indxx Cybersecurity Index. Here's a look at this fund's top holdings, and their weightings in the BUGG portfolio:

• Zscaler Inc (NASDAQ: ZS) at 9.03% of the BUGG portfolio
• Crowdstrike Holdings Inc (NASDAQ: CRWD) at 7.1%
• Palo Alto Networks Inc (NASDAQ: PANW) at 6.77%
• Okta Inc (NASDAQ: OKTA) at 5.96%
• Check Point Software Technologies Ltd (NASDAQ: CHKP) at 5.58%

So you can see here that the two funds are quite different in their scope, albeit with overlapping exposures.

Both the HACK and BUGG ETFs also differ slightly when it comes to geographic weighting. HACK is by far the more US-centric fund. 80.2% of this ETF's holdings were US-listed companies as of 31 August, with another 5.8% coming from India, 3.3% from Israel, 3% from France, and 29% from Canada.

Conversely, BUGG only has a 68.8% weighting to the United States, with 14.2% coming from Israeli companies, 5.4% from Japan, 5.1% from the United Kingdom, and 4.5% from Canada.

Show me the money

The other significant point of difference we can discuss is the fees that investors are expected to pay. The BetaShares Global Cybersecurity ETF charges a management fee of 0.67% per annum. BUGG is clearly looking to undercut this with its own fee of 0.47% per annum, which is a good 30% lower than that of HACK.

Those figures represent a cost of $67 and $47 respectively per annum for every $10,000 invested.

Of course, the Global X Cybersecurity ETF was only listed yesterday, so it makes comparing the performances of these two ETFs a little redundant at this point. But it will be interesting to see which of these two ASX cybersecurity ETFs comes out on top after a few years of competing against each other.

The post HACK-ed or BUGG-ed: A new cybersecurity ETF has just hit the ASX appeared first on The Motley Fool Australia.