As data breaches and cyberattacks rise, cybersecurity exchange-traded funds (ETFs) are gaining traction.
There are multiple ways to invest in the cybersecurity market, including cybersecurity ETFs, which offer a low-cost way to enter the space. ETF fees and expenses are typically lower than those associated with mutual funds or other types of actively managed financial instruments. What’s more, ETFs provide exposure to a basket of stocks, meaning investors can spread their risk around.
AUM: US$7.08 billion
Expense ratio: 0.6 percent
AUM: US$1.81 billion
Expense ratio: 0.6 percent
The cybersecurity ETF has 27 holdings, and its top holdings by weight include Broadcom at 13.87 percent, Cisco Systems at 7.18 percent, CrowdStrike Holdings at 5.62 percent and Palo Alto Networks (NYSE:PANW) at 5.45 percent.
AUM: US$921.99 million
Expense ratio: 0.47 percent
AUM: US$786.78 million
Expense ratio: 0.51 percent
The newest ETF on this list is the GlobalX Cybersecurity ETF, which was founded in October 2019. The ETF tracks a market-cap-weighted global index of companies selected based on revenue related to cybersecurity activities, as companies must generate at least 50 percent of their revenue from cybersecurity to be included.
The ETF has 22 holdings, with the top by weight being Fortinet (NASDAQ:FTNT) at a weight of 6.92 percent, CrowdStrike at 6.87 percent, Check Point Software Technologies (NASDAQ:CHKP) at 5.95 percent and Zscaler (NASDAQ:ZS) at 5.77 percent.
This is an updated version of an article originally published by the Investing News Network in 2018.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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