The cyber attack on the Colonial Pipeline is re-emphasizing the need for greater cybersecurity, which should prop up assets like the Global X Cybersecurity ETF (BUG).
“The ransomware attack on Colonial Pipeline on May 7, 2021, exemplifies the huge challenges the U.S. faces in shoring up its cyber defenses,” a Sci Tech Daily article explained. “The private company, which controls a significant component of the U.S. energy infrastructure and supplies nearly half of the East Coast’s liquid fuels, was vulnerable to an all-too-common type of cyber attack. The FBI has attributed the attack to a Russian cybercrime gang. It would be difficult for the government to mandate better security at private companies, and the government is unable to provide that security for the private sector.”
The hack should prod companies to up the ante on cybersecurity technology. In today’s technologically advanced society, it’s no longer a game of cops and robbers, but one of cyber security engineers and opportunistic hackers.
The BUG fund seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index.
As technology improves, cybersecurity threats increase — a byproduct of growing reliance on cloud computing. 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: BUG’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.
Governmental Cyber Support
Given the latest attack on the Colonial Pipeline, the federal government is certainly taking notice. With the pandemic giving rise to social distancing, more public and private organizations have moved their operations online.
Unfortunately, this also places them at greater risk for cybersecurity attacks. U.S. president Joe Biden is making moves to curb the prevalence of future attacks.
“President Joe Biden signed an executive order Wednesday (May 12) aimed at strengthening U.S. cybersecurity defenses, a move that follows a series of sweeping cyberattacks on private companies and federal government networks over the past year,” a CNBC report said.
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