by Ian Cooper

Unbelievably, the world still isn’t ready for new cyberattacks.

In fact, we’re not even close.

Even our own government isn’t prepared. In June, for example, several U.S. federal governments were hit in a global attack by Russian cybercriminals. Credit card companies have been hacked. Schools were hacked. 

But this is nothing new, though. This has been going on for years. The problem is it’s only getting worse, and far more expensive.

“According to an analysis by Cybersecurity Venture, the global annual cost of cybercrime could top $8 trillion in 2023,” as noted by Fox News. “That number could even underestimate the problem, according to numbers from Security Intelligence, who estimated that U.S.-based financial institutions alone lost close to $1.2 billion in ransomware attacks in 2021, an almost 200% increase over the previous year. If that rate increases at the same pace, global losses from cybercrime could be as high as $16 trillion in 2023.”

So, how can we use this information as investors?

One, be careful what you open in e-mail, or access through an untrustworthy site. And two, we can use it as an investing theme when looking for ETFs to buy, including:

Global X Cybersecurity ETF (BUG)

“The Global X Cybersecurity ETF (BUG) seeks to invest in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices,” says Global X.

Some of the ETFs top holdings include Fortinet, Crowdstrike, Palo Alto, Okta Inc., and Rapid7 Inc. to name a few. Since May, the BUG ETF ran from a low of about $21 to $24.32. From here, we’d like to see it test $28 again, near-term.

iShares Cybersecurity and Tech ETF (IHAK)

According to iShares, “The iShares Cybersecurity and Tech ETF seeks to track the investment results of an index composed of developed and emerging market companies involved in cyber security and technology, including cyber security hardware, software, products, and services.” Some of its top holdings include Zscaler, Fortinet, Okta Inc. Proofpoint Inc., and Palo Alto.  

Since May, the IHAK ETF ran from about $33 to $38.50. We’d like to see it closer to $43 a share again, near-term.