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Cybersecurity Stocks & ETFs for the Coronavirus Crisis

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  • (1:15) - How Is The Pandemic Fueling The Cyber Security Industry?
  • (4:25) - What Are The Top 5 Threats?
  • (14:30) - How Can We Protect Ourselves From Cyber Threats?
  • (22:00) - What Companies Stand To Benefit From These Current Trends?
  • (28:20) - ETFs To Keep On Your Radar: HACK, CIBR, IHAK, BUG

 

In this episode of ETF spotlight, we focus on cybersecurity and related ETFs. In the first part, I speak with Dr. Dave Chatterjee, a renowned cybersecurity expert and professor of MIS at the University of Georgia, about some of the recent trends, and also how we can protect ourselves from cybercriminals as threats rise amid COVID-19 pandemic.

In the second part, I highlight four cybersecurity ETFs, which are among the big beneficiaries of the new remote work era.

Our world is becoming increasingly digital and interconnected, and the pandemic has accelerated that trend. In fact, we have seen years’ worth of digital transformation in months. However, digital transformation has increased the risk of security breaches and threats.

What are the top cyber threats currently and how can we protect ourselves from cybercriminals in the work from home era?

What kind of growth should investors expect in the global market for cybersecurity products and services? Which companies are best positioned to benefit from these trends? Find out on the podcast.

There are four ETFs currently available to investors.  The ETFMG Prime Cyber Security ETF (HACK - Free Report) is the first ETF to target the cybersecurity industry. It launched in November 2014, right after a high-profile cyberattack on Sony Pictures, and was able to gather over $1 billion in assets within a few months.

HACK tracks a modified equal weighted index of companies providing cyber security solutions. It has an expense ratio of 60 basis points. Cloudflare (NET - Free Report) , Cisco (CSCO - Free Report) and Splunk are its top holdings.The ETF may see a change in its management in August.

The First Trust Nasdaq Cybersecurity ETF (CIBR - Free Report) , which launched in 2015, is now the largest ETF in the space. It follows a modified liquidity weighted methodology. Crowdstrike (CRWD - Free Report) , Palo Alto Networks (PANW - Free Report) and Splunk are its top holdings. It has the same expense ratio as HACK.

The iShares Cybersecurity And Tech ETF (IHAK - Free Report) is the cheapest product in the space, with an expense ratio of 0.47%. DocuSign (DOCU - Free Report) and Okta (OKTA - Free Report) are its top holdings.

The Global X Cybersecurity ETF BUG, the latest entrant in the space, charges 50 basis points. It tracks a modified market cap index. Zscaler (ZS - Free Report) and Fortinet (FTNT - Free Report) get the highest allocations in the portfolio.

Tune into the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

(In full disclosure, Neena owns shares of HACK in the ETF Investor Portfolio.)

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