In the age of communications, an increasing number of professionals are growing concerned about potential digital threats, bolstering demand for cyber security. Investors can also capitalize on this growing industry through sector-specific ETF plays.
According to a recent SailPoint survey of 400 IT leaders conducted during Cybersecurity Awareness Month, nearly two in three professionals indicated that they are extremely concerned about their personal identity being stolen. Half of the participants even admitted that they would participate in types of risky behavior that would increase the threat of leaked information and a potential breach.
Specifically, 22% of the participants revealed that businesses repeat personal login credentials across work accounts. Around 19% allow someone else to use their office badge if they asked. 17% said they would snooping on a coworker’s salary if they were mistakenly given access to a file containing that data. 18% indicated that they email sensitive company data or files to a personal email address. 13% said they share passwords with coworkers. 10% steal their boss’ sticky note full of passwords if they had the chance. Additionally, nearly a quarter of respondents admitted that they would steal office supplies from their desk or the supply room to take home with them.
“Ultimately, nobody is infallible. We all succumb to convenience and curiosity, but there is little wiggle room when talking about leaving our digital identities exposed. When you give a malicious hacker an inch, they will run laps around your accounts, data and devices,” SailPoint said.
Given the greater attention to cybersecurity and the growing industry in an increasingly digitized age, investors can capitalize on the growth potential through sector-specific ETFs, including the ETFMG Prime Cyber Security ETF (NYSEArca: HACK), the first exchange traded fund dedicated to the fast-growing cyber security space, which reflects the performance of the ISE Cyber Security Index, and the First Trust NASDAQ CEA Cybersecurity ETF (NasdaqGM: CIBR), which also tracks companies engaged in the cybersecurity segment of the tech and industrials sectors.
While both track the cybersecurity segment, HACK tilts toward on smaller companies starting out in the software security segment, with a focus on small- and micro-cap stocks, which makes up half of its portfolio. On the other hand, CIBR leans towards mid- and large-caps.
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