Cybersecurity has been a hot button topic during the pandemic as internet usage has spiked amid all the social distancing restrictions. In addition, Russia’s threat of a cyberattack further boosted the need for cybersecurity, justifying the need for U.S. President Joe Biden to sign two bills into law.
Biden signed two bipartisan bills that focused on increasing federal, state, and local governments’ cybersecurity measures. With the backing of the federal government, ancillary services will be necessary to bring these cybersecurity measures into fruition, opening up opportunities for exchange traded funds (ETFs) that focus on cybersecurity.
“The bills’ passage comes following an increased pace of cyber incidents in recent years against government entities, including the SolarWinds hack, which involved Russian agents compromising nine federal agencies and at least 100 private sector groups,” The Hill reported.
ETF investors looking for targeted exposure to cybersecurity can take a look at the Global X Cybersecurity ETF (BUG). The BUG fund seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index.
While 70% of the holdings in the fund are companies located in the U.S., the rest are from other parts of the world, giving BUG an element of diversification. This allows the fund to capture growth prospects in other parts of the world where cybersecurity will also prosper.
BUG gives investors:
- High growth potential: Forecasts suggest the global cybersecurity market could grow from nearly $180 billion in 2021 to more than $370 billion by 2028.
- Long-term, global challenge: Cybersecurity is a persistent global concern, affecting both public and private sector entities seeking to protect against the increased risk of ransomware attacks and other online threats.
- Unconstrained approach: The realm of cybersecurity extends far beyond personal computers, reaching an ever-multiplying number of devices and applications. BUG invests accordingly, cutting across traditional sector and geographic definitions.
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