Cybersecurity is going to be one of the world's top priorities… Here's how you can profit from it
Think back 20 years. If you wanted to check your bank statement, you waited for your bank to post it out to you. If you wanted to buy clothes or a book, you had to go shopping.
Thanks to the Internet, you can now do so many things online. But with this growing reliance on the Internet comes a growing problem: Cybercrime.
Thanks to this, cybersecurity is a growing industry. And it presents you with great investment opportunities.
Read on to find out how you can profit from it…
Profiting from the growth of cybersecurity
If you want to invest in companies specialising in cybersecurity
, you can look to individual stocks. But it can be difficult to know which stocks give you the best profit potential. And the number of stocks in SA is very limited.
So it’s time to look further afield. There is one technology exchange traded fund (ETF) in the US that gives you exposure to cybersecurity stocks and is worth considering.
Cybercrime is only going to get worse
Cybercrime is a growing problem. Even the White House has endured its fair share of attacks along with many multinationals. Hacker break into their systems, stealing user and other sensitive information.
In April, underwriter Candice Sutherland estimated cybercrime cost South African businesses around R5.8 billion, notes Fin24
On a global scale, cybercrime costs the world’s economy in excess of $575 billion, says Kyle Anderson in Money Morning US
As a result of the increase in cybercrime, governments and companies around the world are pouring money into protecting their systems with cybersecurity. This means good news for investors. And it’s a sector that’s going to keep growing in the years ahead.
An ETF investing in cybersecurity and technology stocks
Cybersecurity stocks are difficult to pick. They can be specialised and very volatile. So to remove the issues of individual stock picking, look to a technology exchange traded fund (ETF) instead.
Money Morning US’s
Sid Riggs recommends PureFunds ISE Cyber Security ETF. This ETF is listed on the New York Stock Exchange under ticker HACK. The ETF invests in 31 top cybersecurity and software companies, giving it ample diversification in the sector.
Around 75% of the stocks in the ETF are US firms. It has more than $500 million in assets, a total expense ratio of 0.75% and is very liquid.
So there you have it, how to profit from cybersecurity.
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