As Technology Improves, the Need for Cybersecurity Increases

In the global race for technological dominance, new innovations are emerging. However, with that increased technology comes the need to enhance cybersecurity measures, prompting investors to consider exchange traded funds (ETFs) capitalizing on this growth.

The need for security is essential when it comes to internet technology in particular. Public access to the internet means users, both businesses and personal users, are prone to cybersecurity attacks.

“While the internet has undoubtedly brought new benefits, it’s also brought new problems as cyber criminals look to exploit our seemingly ever-growing reliance on connectivity,” a ZD Net article noted.

Phishing emailsmalware and ransomware attacks, or getting your bank detailspasswords and other personal information stolen – the internet has provided malicious hackers with a variety of new ways to make money and cause disruption,” the article added. “Just look, for example, at how critical infrastructure, schools and hospitals have been affected by cyberattacks.”

The need for cybersecurity is so essential that it’s become a much sought-after skill in terms of the workforce. However, there’s not enough water in the talent pool to draw from when it comes to hiring cybersecurity professionals.

As such, according to Forbes, this need “has led to a growing demand for cybersecurity professionals across the globe. In fact, the U.S. Bureau of Labor Statistics projects jobs for information security analysts to grow by 33% from 2020-2030. This is four times faster than the projected 8% growth across all industries.”

A High-Growth Opportunity in Cybersecurity

Given this potential opportunity for higher growth, cybersecurity offers ETF investors a chance to look at funds like the Global X Cybersecurity ETF (BUG). The fund seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index.

BUG gives investors:

  • High growth potential: BUG enables investors to access high growth potential through companies that are positioned to benefit from the rising importance and increased adoption of cybersecurity technology.
  • An unconstrained approach: The ETF’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
  • ETF efficiency: In a single trade, BUG delivers access to dozens of companies with high exposure to the cybersecurity theme.
  • Global diversification: The fund draws from companies across the globe with over 60% from the United States, but also 13% from Israel and 12% from Great Britain (as of August 31).

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