Cybersecurity offers growth prospects

Article Excerpt

Cybercrime can have major consequences for individuals, corporations, and governments, alike; the two highly publicized cyberattacks on T-Mobile last year provide good examples from the recent past. Meanwhile, people still working from home and growth in gaming have also spurred a jump in cyberattacks. Fraudsters are exploiting the rise in telehealth consultations, online shopping and more. Here are two ETFs that aim to benefit from the opportunities presented by companies providing cybersecurity products and services (see the supplement on page 19 for more information). FIRST TRUST NASDAQ CYBERSECURITY ETF $54.14 (Nasdaq symbol CIBR; TSINetwork ETF Rating: Aggressive; Market cap: $5.9 billion) invests in companies involved in the cybersecurity industry. Its MER is somewhat high at 0.76%. The ETF tracks the Nasdaq CTA Cybersecurity Index, which consists of companies that provide products and services to private and public networks, computers, and mobile devices. Stocks are weighted based on their market value adjusted for liquidity, and individual holdings are capped to avoid abnormally large holdings. The ETF invests…