Disruptive technology has come to the forefront amid Covid-19, which is opening up opportunities for exchange-traded fund (ETF) investors to get in on the latest and greatest in tech aside from the famed FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks. This includes planting your portfolios with the Global X Cybersecurity ETF (BUG) to bank on the growth of cybersecurity.
As more businesses look to make the internet of things the core of their revenue generation models, it leaves systems more prone to hackers if the right cybersecurity measures aren’t in place.
“Similarly, today’s organizations have a higher risk exposure due to their more complex and global digital footprint,” wrote Monica Verma in a Dark Reading article. “It has become more profitable to attack service providers and let the malware spread across multiple customer networks across the world. The interconnections and digital supply chains are more complex and continuously evolving. We have seen notable attacks on services providers (including managed services providers and cloud services providers) over the last few years, and we will continue to see them grow.”
BUG seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index. The thing to note is how technology continues to improve and benefit society, while at the same time, cybersecurity threats increase as well—a byproduct of reliance on cloud computing.
ETF Investors’ Heads in the Clouds
Speaking of which, the impact of cloud computing can be felt as more companies are utilizing the technology at a rapid pace to power their core businesses. One way exchange-traded fund (ETF) investors can take advantage of trend is via the Global X Cloud Computing ETF (Nasdaq: CLOU).
Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribution infrastructure and/or hardware components used in cloud and edge computing activities.
For more market trends, visit ETF Trends.