As Tech Thrives, Add a Dose of Cybersecurity to Your ETF Portfolio

The reopening of global economies will mean a continued reliance on technology, which should give way to more cybersecurity measures as companies look to shore up their online presence and protect their data.

“According to a recent (ISC)² study, 23% of cybersecurity leaders said their organization has experienced an increase in cyberattacks since employees started working from home due to COVID-19,” a Help Net Security article noted. “While 50% said they believe they have been following best practices, the same security leaders also said they could be doing more to secure their remote workforces. This situation has proven that the bad guys don’t go on vacation during a crisis.”

“What has changed in the environment during that time? And, what changes have not been made in order to best protect it? This is the gap that CISOs are charged with filling as companies consider returning to work-as-normal,” the article added.

Cybersecurity Exposure via ETFs

Exchange-traded funds (ETFs) focusing on cybersecurity like the First Trust NASDAQ Cybersecurity ETF (NYSEArca: CIBR) and the ETFMG Prime Cyber Security ETF (NYSEArca: HACK). First, on the docket, CIBR seeks investment results that generally correspond to the price and yield f an equity index known as the Nasdaq CTA Cybersecurity IndexSM, which is comprised of securities of companies classified as “cybersecurity” companies by the CTA.

Next, HACK seeks investment results that generally correspond to the price and yield performance of the Prime Cyber Defense Index. The index tracks the performance of the exchange-listed equity securities of companies across the globe that (i) engage in providing cybersecurity applications or services as a vital component of its overall business or (ii) provide hardware or software for cybersecurity activities as a critical component of its overall business.

Another fund to get exposure to disruption via data-driven technology is Goldman Sachs Motif Data-Driven World ETF (GDAT). The fund seeks to provide investment results that closely correspond to the performance of the Motif Data-Driven World Index, which is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going rapid increase in electronically recorded data in the world and its impact on the lifecycle of data delivery and processing.

GDAT essentially provides exposure to the beneficiaries of technological innovation, regardless of sector, geography or market capitalization. They can be used individually or collectively to help investors position their portfolios for the future.

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