Cybersecurity Sector Ideas

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>>> Opportunities in Cybersecurity Offer Investors Future ETF Play


ETF Trends

by BEN HERNANDEZ


APRIL 16, 2020


https://www.etftrends.com/innovative-etfs-channel/opportunities-in-cybersecurity-offer-investors-future-etf-plays/


As more and more businesses turn to cloud technology, cybersecurity will continue to gain traction as a viable investment opportunity. This is evident in biometrics security tech developer BioCatch, which just raised $145 million.

BioCatch’s technology can track user behavior to determine whether a customer is real or fake. Its platform is already being used by 40 global financial institutions.

“BioCatch’s growth in annual recurring revenue and client base speaks directly to the growing demand for our service and the increasing number of use cases we are able to support,” said Howard Edelstein, the company’s chief executive officer. “The current environment has spawned a large increase in bad actors seeking to take advantage of distracted individuals working from home or dispersed companies whose technologists are scattered in remote locations. In such times, technologies like behavioral biometrics become more important than ever.”

Companies like BioCatch open up opportunities for ETFs focusing on cybersecurity like the First Trust NASDAQ Cybersecurity ETF (NYSEArca: CIBR) and the ETFMG Prime Cyber Security ETF (NYSEArca: HACK). First, on the docket, CIBR seeks investment results that generally correspond to the price and yield f an equity index known as the Nasdaq CTA Cybersecurity IndexSM, which is comprised of securities of companies classified as “cybersecurity” companies by the CTA.

Next, HACK seeks investment results that generally correspond to the price and yield performance of the Prime Cyber Defense Index. The index tracks the performance of the exchange-listed equity securities of companies across the globe that (i) engage in providing cybersecurity applications or services as a vital component of its overall business or (ii) provide hardware or software for cybersecurity activities as a critical component of its overall business.

ETFs to look at in the growing fintech space include the?Global X FinTech ETF (NasdaqGM: FINX)?and the?ARK Fintech Innovation ETF (NYSEArca: ARKF). ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.

Another fund to get exposure to disruption via data-driven technology is Goldman Sachs Motif Data-Driven World ETF (GDAT). The fund seeks to provide investment results that closely correspond to the performance of the Motif Data-Driven World Index, which is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going rapid increase in electronically recorded data in the world and its impact on the lifecycle of data delivery and processing.

GDAT essentially provides exposure to the beneficiaries of technological innovation, regardless of sector, geography or market capitalization. They can be used individually or collectively to help investors position their portfolios for the future.

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