Simply brilliant: This ETF benefits from almost all growth areas in the tech world. Because they simply cannot do without the products and services of the companies they contain.
As fascinating as technological developments are, they unfortunately also bring with them growing cybercrime threats.
There are many savings opportunities for companies, especially in difficult economic times – but cybersecurity is not one of them. The potential damage is simply too great. The rapid progress in artificial intelligence in particular increases the risks significantly, which makes well-thought-out security solutions indispensable.
Cyber security therefore offers a brilliant opportunity for tech investors: the market grows with every technological leap, is constantly evolving and also scores points with its enormous importance and comparatively high stability.
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The most important players are summarized in the First Trust Nasdaq Cybersecurity ETF. Every company has a different focus in the cybersecurity landscape, from network security to cloud security solutions and real-time threat detection.
California-based Palo Alto Networks is an IT security company that offers multiple security technologies in a single platform with next-generation firewalls. Thanks to numerous innovations and strategic acquisitions, Palo Alto is one of the world’s leading cybersecurity companies. Other top holdings in the ETF include Infosys, Broadcom, Cisco, Crowdstrike, Fortinet, Check Point Software, Cyberark, Zscaler and Cloudflare. Infosys, for example, is an Indian IT service provider for digital services. Artificial intelligence is also used heavily in this sector. On the “good” and “evil” side. This means that criminals also use the AI, for example by having it simulate people – where, for example, the boss asks his employee via video to transfer money or reveal information.
The cybersecurity market has already recorded strong growth in recent years. For the coming years, due to the increasing need for security, experts estimate the sector to grow at ten to 15 percent per year. The cybersecurity ETF should benefit from this.
By the way: This article first appeared in the new print edition of BÖRSE ONLINE. You will find these here
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