29 Dec A Dozen ETFs For Cybersecurity Investing In 2024
Exchange-traded funds may be the best stock market bet
– Steve Morgan, Editor-in-Chief
Sausalito, Calif. – Dec. 29, 2023
Cybersecurity Ventures predicts that global cybercrime damage costs will grow by 15 percent per year over the next two years, reaching $10.5 trillion USD annually in 2025, up from $3 trillion USD in 2015.
To combat cybercrime, we estimate that the world is halfway through spending around $1.75 trillion cumulatively on cybersecurity products and services for the 5-year period from 2021 to 2025.
Venture capital firms have pumped billions of dollars into cybersecurity startups and emerging players each year over the past 5 years.
That about sums up the white hot cybersecurity market. Although total venture capital investments into the sector were down in 2023 (compared to 2022, a record year), that might mean less competition for the publicly traded companies who are devoted to protecting governments, businesses, and consumers from cybercriminals.
So, if you’re looking to invest into the cybersecurity space, then whether you’re a newbie or an experienced stock picker, the question is one of where to put your money?
ETFs
“ETFs are collections of assets, often stocks, bonds or a mix of the two,” according to BankRate.com. “A single ETF might own dozens, sometimes hundreds, of stocks. So by owning a single share of the ETF, investors can own an indirect stake in all the stocks (or other assets) held by the fund. It’s a great (and often inexpensive) way to buy a collection of stocks.” (more on ETFs)
Here’s 12 cybersecurity ETFs compiled by the editors at Cybercrime Magazine:
- ETFMG Prime Cyber Security ETF (ETFMG: HACK)
- First Trust NASDAQ Cybersecurity ETF (NASDAQ: CIBR)
- Global X Cybersecurity ETF (BUG) (NASDAQ: BUG)
- Global X Defense Tech ETF (NASDAQ: SHLD)
- Horizons GX Cybersecurity Index ETF (TSE: HBUG)
- IShares Digital Security UCITIS ETF (LSE: LOCK)
- IShares Trust Cybersecurity and Tech ETF (NYSE: IHAK)
- ProShares Ultra Nasdaq Cybersecurity (NASDAQ: UCYB)
- Technology Select Sector SPDR Fund (NASDAQ: XLK)
- Themes ETF Trust Themes Cybersecurity ETF (NASDAQ: SPAM)
- WisdomTree Cybersecurity FUND (NASDAQ: WCBR)
- XTrackers Cybersecurity Select Equity ETF (NASDAQ: PSWD)
You may also want to take a look at this handful of tech-focused ETFs with a good amount of cyber mixed in:
- ARK Autonomous Technology & Robotics (Cboe: ARKQ)
- BlueStar Israel Technology ETF (ETFMG: ITEQ)
- First Trust Cloud Computing ETF (NASDAQ: SKYY)
- Vanguard Information Technology ETF (NASDAQ: VGT)
- WisdomTree Trust Computing WisdomTree Cloud Computing Fund (NASDAQ: WCLD)
A new year is upon us. Place your bets, if you dare.
Cybersecurity Ventures (including the author and contributor) is not affiliated with and has not invested into and does not recommend any of the ETFs listed above. The information is provided exclusively as a resource to learn more about Cybersecurity ETFs.
– Steve Morgan is founder and Editor-in-Chief at Cybersecurity Ventures.
Go here to read all of my blogs and articles covering cybersecurity. Go here to send me story tips, feedback, and suggestions.
Connor Morgan, researcher at Cybersecurity Ventures, contributed to this story.
