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Here's Why You Should Invest in Cybersecurity ETFs

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As our world becomes increasingly digital and interconnected, the frequency and severity of security breaches and threats continue to rise. Recent attacks on many high-profile targets have highlighted the need to strengthen our cyber defenses, and spending on these products and services is likely to rise significantly in the coming years.

According to McKinsey research, damage from cyberattacks will amount to about $10.5 trillion annually by 2025, and the total addressable market could reach $1.5 trillion to $2.0 trillion in the coming years.

Most companies cut discretionary spending last year amid rising economic uncertainty, but cybersecurity is an area they cannot afford to ignore. Governments around the world also plan to increase spending in these areas.

Recent advances in AI present significant advantages for cybersecurity enforcement. However, hackers are also using the technology to amplify and intensify cyberattacks.

Cisco Systems (CSCO - Free Report) recently announced the acquisition of Splunk for $28 billion, as the networking equipment giant hopes to boost AI-powered cybersecurity monitoring tools. We could see more M&A activity in this space.

To learn about the First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report) , the ETFMG Prime Cyber Security ETF (HACK - Free Report) , the iShares Cybersecurity & Tech ETF (IHAK - Free Report) and the Global X Cybersecurity ETF (BUG - Free Report) , please watch the short video above.

Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) , CrowdStrike (CRWD - Free Report) , CyberArk Software (CYBR - Free Report) , and Check Point Software (CHKP - Free Report) are among the top holdings in these ETFs.

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