Why First Trust NASDAQ Cybersecurity ETF is a Must-Have in Your Investment Portfolio
Cybersecurity risks have been on the rise in recent years, and the trend is not slowing down anytime soon. The COVID-19 pandemic has further increased the need for reliable cybersecurity measures, particularly as more and more business operations shift online. As an investor, it’s important to stay ahead of the curve and invest in companies that can help mitigate these risks. That’s where the First Trust NASDAQ Cybersecurity ETF (CIBR) comes in.
CIBR is a specialized exchange-traded fund focused solely on companies involved in cybersecurity. These companies are involved in everything from software and hardware development to consulting and risk management services. With a portfolio of more than 40 holdings, CIBR provides a diversified exposure to the cybersecurity industry.
One of the key benefits of CIBR is that it invests in both established and emerging companies in the cybersecurity space. This allows investors to capture the growth potential of new technologies and startups while still having exposure to the stability of larger, established companies. Additionally, the ETF’s focus on a single sector allows investors to gain a more in-depth understanding of the cybersecurity industry and track the industry’s performance more closely.
Another important factor to consider is the long-term growth potential of the cybersecurity industry. Cybersecurity attacks are not going away anytime soon, meaning that demand for cybersecurity products and services will likely continue to grow. According to MarketsandMarkets, the global cybersecurity market is projected to reach $248.5 billion by 2023, growing at a compound annual growth rate (CAGR) of 10.2%. Investing in a specialized ETF like CIBR can provide exposure to this potentially lucrative industry.
In addition to the growth potential of the cybersecurity industry, CIBR’s performance has been impressive in recent years. According to Morningstar, CIBR has returned 22.67% over the past year and 28.27% over the past three years (as of August 31, 2021). This outperforms the S&P 500, which returned 21.81% and 20.86% over the same periods, respectively. Of course, past performance is not indicative of future results, but it’s an encouraging sign nonetheless.
Investing in CIBR is also a relatively low-cost way to gain exposure to the cybersecurity industry. The ETF has an expense ratio of 0.60%, which is lower than the average expense ratio for actively managed mutual funds. This can be an important factor for investors looking to maximize their returns by keeping expenses low.
In conclusion, investing in the First Trust NASDAQ Cybersecurity ETF (CIBR) is a smart move for investors looking to gain exposure to the rapidly growing cybersecurity industry. With a diversified portfolio of both established and emerging companies, CIBR provides a flexible way to invest in this lucrative sector. Additionally, the ETF’s impressive past performance and lower expense ratio make it an attractive choice for investors seeking long-term growth potential.
(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)
Speech tips:
Please note that any statements involving politics will not be approved.