One of the biggest threats to corporate America is ransomware. The growing possibility of losing access to essential or confidential digital property is a nightmarish scenario for executives as the financial consequences can be enormous.
But it’s not just major companies that are at risk. We are all threatened with the loss of personal data security as hackers continue to develop new ways to exploit networks, software, and the array of evolving technology services. As the world advances to become more digitized, so too do its threats.
According to Morningstar senior equity analyst Mark Cash, these attacks are among several tailwinds for investors in cybersecurity stocks. The “heightened threat environment, networking changes due to the pandemic changing how security works, legislation ramping up fines for miscues, spending becoming proactive and commanding a larger portion of IT budget, and these headline-grabbing breaches all help the demand,” he says.
Betting on individual cybersecurity stocks can be especially risky considering the knowledge and expertise needed to understand some of the quick changes and rapidly developing technology. If you’re looking to benefit from this trend, why not consider owning a broad spectrum of cybersecurity stocks through an exchange-traded fund (ETF)? Today we’re delving into an ETF focused on companies that protect against cyberattacks.
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First Trust NASDAQ CEA Cybersecurity ETF (CIBR)
CIBR tracks an index of companies engaged in the cybersecurity segment of the tech and industrial sectors. To make the cut, a company must be classified as a cybersecurity company by the Consumer Technology Association (CTA) and have a minimum market cap of $250 million. This means it holds software and networking companies, but also branches out from the tech sector into more diversified industries like aerospace & defense. This slightly expanded focus is the primary distinction between CIBR and similar funds, most of which have small, tech-dominated portfolios.
To ensure liquidity in the underlying stocks, which is a concern for ETFs that invest in small-cap names, companies must have a minimum free float of 20%. The index then weights stocks based on their underlying liquidity and imposes caps on how large any one security can become. The portfolio includes familiar names like Cisco Systems, Akamai, and NortonLifeLock.
First Trust NASDAQ CEA Cybersecurity ETF (CIBR) Summary
- Weighted Average Market Cap $29.25B
- Price / Earnings Ratio 120.7
- Price / Book Ratio 7.29
- Yield 0.11%
- Expense Ratio 0.6%
- Net Assets 4.76B
- Number of Holdings 41
- Top Holdings Palo Alto (PANW), Accenture (ACN), Cisco (CSCO)
Where to invest $1,000 right now...
Before you consider buying CIBR, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not CIBR.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
A company with 400 million ‘patents’
One company has quietly compiled more than 400 million official trade secrets.
Trade secrets are like patents in that they protect valuable and proprietary information…
But unlike patents, trade secrets take less time to register… and more importantly, they never expire.
Which is a huge advantage for this little-known company.
You see, this company is using these trade secrets to build the world’s largest “codebase,” which will bethe key to it becoming “America’s Next Big Monopoly.”
Not surprisingly, Wall Street is starting to take notice. And the smart money is already pouring in.
Tech investor Cathie Wood has invested over $80 million already, and Microsoft founder Bill Gates has invested as well.
Get the details here before this story hits the mainstream media.