Why You Should Buy Cybersecurity ETFs
Rising risks of security breaches would boost spending on cybersecurity
Our world is becoming increasingly digital and interconnected, and the pandemic has accelerated that trend. However, digital transformation has increased the risk of security breaches and threats.
President Biden held a cybersecurity summit with top CEOs at the White House last week and called the issue “the core national security challenge we are facing.” Recent high-profile attacks have highlighted the need to strengthen our cyber defenses and spending on these products and services is likely to go up significantly in the coming years.
Since many companies in this space are newer and riskier, it is preferable to look at cybersecurity ETFs for diversified exposure to this promising but volatile area.
The ETFMG Prime Cyber Security ETF (HACK) tracks a modified equal weighted index of companies providing cyber security solutions. It has an expense ratio of 60 basis points.
The First Trust Nasdaq Cybersecurity ETF (CIBR), the largest ETF in the space, follows a modified liquidity weighted methodology. It has the same expense ratio as HACK.
The iShares Cybersecurity And Tech ETF (IHAK) is one of the cheapest product in the space, with an expense ratio of 0.47%. The Global X Cybersecurity ETF (BUG) charges 50 basis points. It tracks a modified market cap weighted index.
Disclosure: Neena owns shares of IHAK in the ETF Investor Portfolio.
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
ETFMG Prime Cyber Security ETF (HACK): ETF Research Reports
First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports
Zscaler, Inc. (ZS): Free Stock Analysis Report
CrowdStrike Holdings Inc. (CRWD): Free Stock Analysis Report
iShares Cybersecurity and Tech ETF (IHAK): ETF Research Reports
GLBLX CYBRSEC (BUG): ETF Research Reports
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