A Cybersecurity ETF that De-BUGs Threats to Your Portfolio

As the world continues to be powered by the internet of things (IoT), the heightened risk of a cyber attack remains, opening up more opportunity for ETFs like the Global X Cybersecurity ETF (BUG).

BUG 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.

The ETF is up over 60% within the past year. BUG is up 25% within the last few months.

BUG Chart

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.

Cybersecurity: A Top Priority for Business Infrastructure in 2021

Chief Information Security Officers (CISOs) are putting cybersecurity at the top of the list for investment in 2021. A recent TechRepublic article interviewed Bob Blakley, operating partner at a venture capital think tank, about investments that CISOs should take into account in 2021.

“64% of the CISOs in our village survey mentioned cloud security as their top area for investment in 2021,” Blakley said. “I think there are two obvious reasons why cloud security is an area of increasing focus. The first is that cloud adoption, partly driven by the pandemic, is accelerating and is happening maybe faster than people had planned for. And along with adoption of cloud comes the requirements to secure operations in the cloud. And the cloud operates quite differently from on-premises infrastructure and applications.”

“There’s a lot of investment that is going to be required to get enterprises up and running on high consequence applications in the cloud, just because it’s a different environment,” Blakely added. “The other reason I think that people are investing in cloud security is because they are increasingly moving operations that normally they would have performed on-premises into the cloud, just because the employees increasingly with pandemic restrictions are working from home and because upgrading infrastructure and deploying things on-premises requires getting a lot of people into the building to do the work.”

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