Cybersecurity spending keeps expanding

Article Excerpt

Cybercrime can have major consequences for individuals, corporations and governments, alike. As a result, cybersecurity will continue to be a high-growth industry, and companies that provide effective protection will benefit accordingly. Here are two ETFs that aim to benefit from the opportunities ahead for providers of cybersecurity products and services (see the Supplement on page 39 for more information). FIRST TRUST NASDAQ CYBERSECURITY ETF $63.64 (Nasdaq symbol CIBR; TSINetwork ETF Rating: Aggressive; Market cap: $8.1 billion) tracks the Nasdaq CTA Cybersecurity Index. The companies in the index provide products and services that are applied to private and public networks, computers, and mobile devices in order to protect the integrity of data and network operations. Stocks are weighted based on their market value adjusted for liquidity, and individual holdings are capped to avoid excessively large holdings. The fund invests globally but most of the ETF’s holdings are listed in the U.S. (79%), India (7%), Israel (4%), France (4%), and Canada (3%). The ETF currently holds 32 stocks,…