New SEC Rules Underscore the Importance of Cybersecurity | ETF Trends

Russia’s invasion of Ukraine underscored the importance of cybersecurity after Western sanctions on Russia forced nations to be on high security alert for cyber attacks coming out of Russia. Now, the Securities and Exchange Commission (SEC) is adding a layer of cybersecurity for public companies, which should help further propel the sector.

“The US Securities and Exchange Commission (SEC) has proposed new rules and amendments for public companies regarding cybersecurity,” a CyberWire article said.

“The SEC stated that the proposed rules and amendments include reporting about material cybersecurity incidents on Form 8-K, requiring periodic disclosures regarding ‘registrant’s policies and procedures to identify and manage cybersecurity risks, management’s role in implementing cybersecurity policies and procedures, board of directors’ cybersecurity expertise, if any, and its oversight of cybersecurity risk, and updates about previously reported material cybersecurity incidents,'” the article added.

With a major regulatory agency like the SEC ramping up cybersecurity efforts, that’s a plus for the industry. It got an additional boost during the pandemic, especially with heavier internet usage amid social distancing measures.


A Growth Opportunity in Cybersecurity

With growth opportunities abounding in cybersecurity, one exchange traded fund (ETF) to consider is 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: Forecasts suggest the global cybersecurity market could grow from nearly $180 billion in 2021 to more than $370 billion by 2028.
  • Long-term, global challenge: Cybersecurity is a persistent global concern, affecting both public and private sector entities seeking to protect against the increased risk of ransomware attacks and other online threats.
  • Unconstrained approach: The realm of cybersecurity extends far beyond personal computers, reaching an ever-multiplying number of devices and applications. BUG invests accordingly, cutting across traditional sector and geographic definitions.

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