Alles over de cyber security ETF’s

Because so many different things are now handled online, cyber security has become increasingly important within organizations in recent years. After all, as an online company, you don’t exactly make a good impression on your customers if you have to admit to them that your system has been hacked. The positive side of this development is that many companies now earn their daily bread by making and keeping things like websites, databases and servers secure. You can invest in these types of companies by buying so-called cyber security ETFs on the stock exchange . These types of ETFs are usually relatively cheap and offer you a good spread and a pleasant return. In this article, we will explain exactly what a cyber security ETF is. We will also look at popular examples of Cyber ​​Security ETFs.

What does cyber security entail?

In recent decades, the possibilities in the field of automation, digitalisation and information technology have increased enormously. Companies and other types of institutions benefit greatly from this, because many complicated and monotonous work processes can be processed faster and more efficiently. However, there are major risks and vulnerabilities associated with this way of working. Hackers and cybercriminals can cause such disruption in work processes that the company not only suffers damage to its image, but also faces negative financial consequences. For example, it is possible for cybercriminals to make the website of a specific organisation inaccessible by launching a DDOS attack. Or hackers manage to gain access to the customer database of a webshop, after which they copy that database and offer it for sale online. The buyers of this stolen data can then quite easily commit identity fraud with it. In short, protection against this type of malpractice is very important.

Large companies often employ one or more IT professionals to secure their digital systems. Companies and institutions that do not have this luxury can use the services of cyber security companies. In view of the great demand for this form of service, the number of companies that offer digital security services has grown enormously in recent years. Organizations that hire this type of security personnel realize all too well that their good name is at stake if they have not properly secured their digital infrastructure. Partly for this reason, they are generally prepared to invest heavily in this form of service.

Investing in cyber security ETFs

One of the main reasons why investing in cyber security ETFs can be smart is because this industry offers strong growth prospects. Hackers are becoming increasingly smarter in finding all kinds of methods to paralyze websites and computer systems, among other things. For companies that offer cyber security services, it is important to be able to respond to new bad developments as quickly as possible and, if possible, be one step ahead of hackers. This makes it likely that organizations that previously called on external cyber security experts will do so again and again to ensure that the security of their digital infrastructure remains up-to-date. This constant new deployment ensures that the income of cyber security companies is becoming increasingly stable. Apart from that, increasingly complex attacks by hackers bring more money into the coffers of the security guards, because more time usually has to be spent to adequately resolve the issue. In addition to companies and institutions, many government organizations are also customers of a cyber security company. After all, the government manages all kinds of privacy-sensitive data that should not end up in the hands of cyber criminals. In addition, the government can be confronted with cyber attacks from enemy countries.

If you would like to invest in this industry, but find it difficult or time-consuming to research which cyber security companies are most suitable for this, you can decide to invest your money in one or more cyber security ETFs. Because this business sector is still relatively young, no real market leader has emerged from the large number of service providers. The large and still growing number of cyber security companies also makes it risky to invest in just one specific company. If you invest your money in a cyber security ETF instead, you spread your financial risk over a number of different cyber security companies, while still profiting from the growth of this market sector. In all cyber security ETFs that are currently offered on the stock exchange, mainly American IT companies dominate.