Global Investing
Top UCITS Alternatives to BUG (Global X Cybersecurity)
Discover why switching to European-domiciled equivalents like BUGG or LOCK is the smartest move for your long-term wealth protection and tax efficiency.
Abhighyan Sinha
The Global X Cybersecurity ETF (BUG) tracks the Indxx Cybersecurity Index, providing investors with a focused "pure-play" approach to the digital security sector. By requiring holdings to derive at least 50% of their revenue from cybersecurity activities, the fund eliminates the diluted exposure often found in broader tech indices.
Institutional and retail investors typically choose BUG for its modified market-cap weighting scheme (typically capping holdings at 6%) to balance dominant industry leaders like Palo Alto Networks and CrowdStrike with high-growth emerging firms.
However, for long-term Indian investors, BUG carries a critical structural risk: the US estate tax. If you hold US-domiciled assets like BUG and your holdings exceed $60,000, your estate faces US estate tax at progressive rates of up to 40% on your death. On a $500,000 holding, that works out to roughly 29% of the portfolio.
This blog gives you all the information you need about the top UCITS alternatives. The first option below is the European version of BUG and tracks the same index, while the others track different benchmarks such as the STOXX Global Digital Security Index or use expert-led methodologies. These alternatives provide similar high-growth exposure to the cybersecurity sector without the estate tax risk.
Table of contents
- Why Indians are looking for UCITS alternatives to BUG
- Popular UCITS alternatives for BUG
- Invest in UCITS ETFs with Paasa
Why Indians are looking for UCITS alternatives to BUG
Indian investors are shifting to UCITS alternatives because they solve the tax risks and inefficiencies of US ETFs like BUG while providing very similar exposure.
- Estate Tax Protection: UCITS funds are typically domiciled in Ireland. They are not considered "US-situs" assets, meaning they are 100% exempt from US Estate Tax.
- Tax Deferral (Accumulation): Unlike BUG, which forces taxable cash dividends on you, many UCITS funds offer "Accumulating" classes that reinvest dividends automatically. This defers your Indian tax liability until you sell the fund, and converts what would have been slab-rate dividend income into capital gains.
To learn more about UCITS ETFs and why Indian investors are choosing them, read our guide on UCITS ETFs.
Popular UCITS alternatives for BUG
Here are the top four UCITS funds that serve as the best alternatives for focused cybersecurity exposure.
1. Global X Cybersecurity UCITS ETF
This is the European version of BUG, managed by the same provider (Global X) and tracking the same Indxx Cybersecurity Index. It suits investors who want exactly what BUG offers, a modified market-cap weighted, pure-play portfolio of companies benefiting from the adoption of cybersecurity technology, inside an accumulating UCITS structure.
- Ticker: BUGG (LSE, GBP); the USD line trades on the LSE as BUG
- Total Expense Ratio (TER): 0.50%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings: CrowdStrike, Palo Alto Networks, Fortinet, Zscaler, Check Point Software.
2. iShares Digital Security UCITS ETF
Managed by BlackRock, LOCK is the cheapest fund on this list at 0.40%, with about £1.7 billion in assets (as of November 2026). Instead of a strict pure-play approach, it tracks the STOXX Global Digital Security Index, which casts a slightly wider net and includes dedicated cybersecurity firms alongside broader tech and digital infrastructure companies.
- Ticker: LOCK (LSE, USD)
- Structure: Accumulating (Reinvests dividends)
- Total Expense Ratio (TER): 0.40%
- Top Holdings: Palo Alto Networks, CrowdStrike, CyberArk, Nutanix, Fortinet.
3. L&G Cyber Security UCITS ETF
ISPY was one of the first cybersecurity ETFs launched in Europe and is the largest on this list, with about £3.2 billion in assets (as of November 2026). Tracking the ISE Cyber Security UCITS Index, ISPY splits its exposure between infrastructure providers (hardware and software creators) and service providers (consulting and secure services). This results in a more diversified portfolio across large and mid-cap tech stocks, reducing concentration risk compared to heavily top-weighted funds like BUG.
- Ticker: USPY (LSE, USD) / ISPY (LSE, GBX)
- Structure: Accumulating (Reinvests dividends)
- Total Expense Ratio (TER): 0.69%
- Top Holdings: Broadcom, Cisco Systems, Palo Alto Networks, CrowdStrike, Check Point Software.
4. WisdomTree Cybersecurity UCITS ETF
This fund uses an expert-driven index methodology. Unlike BUG's market-cap weighting, it tracks an index built in collaboration with Team8, a specialized Israeli cybersecurity think tank. This expert-led methodology actively screens for companies driving key megatrends in the sector, like Cloud Security and Zero Trust. It leans further into high-growth, pure-play companies, which suits investors who prefer a researched methodology over simply buying the biggest names.
- Ticker: WCBR (LSE, USD)
- Structure: Accumulating (Reinvests dividends)
- Total Expense Ratio (TER): 0.45%
- Top Holdings: Palo Alto Networks, CrowdStrike, SentinelOne, Fortinet, CyberArk.
More UCITS alternatives: UCITS alternatives to WCLD and UCITS alternatives to BOTZ.
Related: What are UCITS ETFs? and Should you switch from US ETFs to UCITS?
Invest in UCITS ETFs with Paasa
Paasa is a global investing platform designed for Indian residents and NRIs. We provide direct access to 11 markets: the US, Canada, the UK, Germany, France, Switzerland, the Netherlands, South Korea, Japan, Hong Kong and Singapore.
This means you are not restricted to just US ETFs like BUG; you can also buy tax-efficient UCITS equivalents using Paasa.
The compliance advantage
Paasa makes global investing easy and also removes the compliance friction with a specialized layer built for Indian residents and NRIs:
- Schedule FA reporting: Exact reports you need for your Indian tax returns, eliminating the need for manual calculations.
- FEMA & LRS guidance: Guidance on FEMA regulations and LRS limits to ensure compliance.
Whether you are buying direct US stocks or investing in UCITS ETFs listed on European exchanges, Paasa provides global access with India-specific compliance and tax support.
Frequently Asked Questions
Is there a direct UCITS equivalent to the Global X Cybersecurity ETF (BUG)?
Yes. The Global X Cybersecurity UCITS ETF is the European version of BUG. It is run by the same provider and tracks the same Indxx Cybersecurity Index, but it is domiciled in Ireland, so it sits outside US estate tax.
What does "pure-play" mean for these ETFs?
It means the fund only holds companies that earn most of their revenue from cybersecurity. BUG and its UCITS version require at least 50% of revenue from cybersecurity, so the portfolio is not diluted by diversified tech giants.
Which cybersecurity UCITS ETF is cheapest?
The iShares Digital Security UCITS ETF (LOCK) is, at 0.40% a year. WisdomTree's WCBR costs 0.45%, Global X 0.50% and L&G's ISPY 0.69%.
Are these BUG alternatives accumulating?
Yes. All four funds listed here reinvest dividends, so you pay no Indian tax on dividends until you sell, although cybersecurity companies pay little in dividends anyway.
Can I switch from BUG to a UCITS alternative without paying tax?
No. Moving from BUG to a UCITS fund means selling BUG, and that sale is a taxable event in India. Gains on units held for more than 24 months are taxed as long-term capital gains at 12.5%, and gains on units held for 24 months or less are taxed at your income-tax slab rate. As a non-resident, you generally do not owe US capital gains tax on the sale.
How can I buy the Global X Cybersecurity UCITS ETF (BUGG)?
You can buy it through your Paasa account: search for BUGG, which trades on the London Stock Exchange in GBP (the USD line trades as BUG), and place a buy order.
How can I buy the iShares Digital Security UCITS ETF (LOCK)?
You can buy it through your Paasa account: search for LOCK, which trades on the London Stock Exchange in USD, and place a buy order.
How can I buy the L&G Cyber Security UCITS ETF (USPY)?
You can buy it through your Paasa account: search for USPY, which trades on the London Stock Exchange in USD, and place a buy order.
How can I buy the WisdomTree Cybersecurity UCITS ETF (WCBR)?
You can buy it through your Paasa account: search for WCBR, which trades on the London Stock Exchange in USD, and place a buy order.
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