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2 Cybersecurity ETFs to Know About
Become familiar with the companies leading the cybersecurity space
Cybersecurity is the protection of computer systems and networks from the theft or damage of their hardware, software, and/or data. Cyber threats have been on the rise during the coronavirus pandemic. Thankfully, there are leaders in the cybersecurity space that are combatting these cyber threats. According to The Business Research Company, the cybersecurity services market size is expected to grow at a compound annual growth rate of 8% by 2023 to a $91.09 billion market size from $66.86 billion in 2019. The following 2 ETFs will allow you to easily keep up with the publicly-traded companies that will be leading the growth in the cybersecurity market:
1. Global X Cybersecurity ETF (BUG)
2. First Trust NASDAQ Cybersecurity ETF (CIBR)
1. Global X Cybersecurity ETF (BUG)
BUG is an ETF that seeks to track the investment performance of the Indxx Cybersecurity Index, an index designed to provide exposure to exchange-listed companies that are positioned to benefit from increased adoption of cybersecurity technology. BUG allows you to gain exposure to companies such as CrowdStrike, Palo Alto Networks, Zscaler, and FireEye.
As of February 10th, 2021, BUG has a price of $29.05 and an expense ratio of 0.50%. Since its inception on October 25th, 2019, BUG has provided a total return of approximately 85% and an average annual total return of approximately 62%.
2. First Trust NASDAQ Cybersecurity ETF (CIBR)
CIBR is an ETF that seeks to track the investment performance of the Nasdaq CTA Cybersecurity Index, an index designed to track the performance of companies engaged in the cybersecurity segment of the technology and industrial sectors. CIBR allows you to gain exposure to companies such as CrowdStrike, Zscaler, Cisco, and Splunk.
As of February 10th, 2021, CIBR has a price of $45.93 and an expense ratio of 0.60%. Since its inception on July 7th, 2015, CIBR has provided a total return of approximately 135% and an average annual total return of approximately 17%.
As you can see, there is some overlap between the two ETFs, with both allowing you the opportunity to gain exposure to the strongest publicly-traded cybersecurity companies. Cybersecurity is not disappearing. It will continue to grow as an essential aspect of the digital world for both individuals and enterprises. Remember to always do your research and due diligence before investing before determining if a specific kind of security will continue to help you meet your goal of long-term financial success.
