Before the market opened on June 7, there was only one ETF (exchange traded fund) in cybersecurity. Factorshares Trust- PureFunds ISE Cybersecurity ETF now has some company thanks to First Trust Advisors, L.P. Following in the wake of several highly publicized breaches, the most recent of which is discussed in-depth by the National Cybersecurity Institute, First Trust believed it was an advantageous time to begin investing in companies that specialize in cybersecurity. Ryan Issakainen, First Trust’s CTA, Senior Vice President and ETF strategist, stated, “Along with the clear benefits of an increasingly interconnected world comes the growing need to ensure the security of cyberspace.”
Before the market opened on June 7, there was only one exchange traded fund in cybersecurity.
As a result, First Trust established an equity index that monitors the successes and failures of companies involved in the building, implementation and management of security protocols applied to private and public networks, computers and mobile devices. These companies provide protection of the integrity of data and network operations. ETA Trends reported that Cisco Systems, Ahnlab, FireEye, Akamai, Check Point Software, and CyberArk are just some of the prestigious companies on the index.
First trust believes investing in cybersecurity is the future.
A lucrative opportunity
First Trust is calling their new fund Nasdaq CEA Cybersecurity ETF. It is designed to gather investment results related to the price and yield of the aforementioned Nasdaq CEA Cybersecurity Index. Issakainen went on to say that the fund “presents significant opportunities for companies involved with [cybersecurity], many of which are not represented in traditional index ETFs. We believe this ETF provides a diversified, efficient way for investors to gain exposure to this important theme.” First Trust predicted an annual growth of 10.3 percent in the global cybersecurity market, which equates an expansion of about $95.6 billion in 2014 to $155.74 billion in 2019. That kind of rapid proliferation will mean a dramatic increase in the number of cybersecurity jobs available. To start your career in the field of cybersecurity and capitalize on this market trend, visit NCI’s website now.
NCI blog on “Federal, state governments struggling with cybersecurity expertise” at http://www.nationalcybersecurityinstitute.org/editorials/federal-state-governments-struggling-with-cybersecurity-expertise/