ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. Midterm Elections Show Need for Robust Cybersecurity
ETF Education Channel
Share

Midterm Elections Show Need for Robust Cybersecurity

Tom LydonOct 11, 2022
2022-10-11

October is Cybersecurity Awareness Month and with the 2022 midterm elections just weeks away, now is an appropriate time for investors to examine cybersecurity stocks and exchange traded funds.

For those market participants that want exposure to cybersecurity stocks without the commitment of individual names or dedicated ETFs, the Invesco QQQ Trust (QQQ B+) and the Invesco NASDAQ 100 ETF (QQQM B) are credible alternatives because both tech-heavy ETFs provide exposure to multiple cybersecurity stocks.

Like so many growth names this year, cybersecurity stocks are being taken to task, but the long-term outlook for the industry is as compelling as ever. Part of that thesis revolves around government spending and elections are one example of the need for improved cybersecurity in the public sector.

“While the potential erosion of faith in government institutions is a credit risk for the federal government, the decentralized nature of elections in the US impedes wide-scale national interference. But local governments are exposed to credit risk through the potential shift of resources from core services to strengthen election security. Enhanced federal and state funding and support would help mitigate these risks,” according to Moody’s Investors Service.

The research firm notes national security authorities are already looking into and preparing for potential cyber threats in the upcoming midterm elections. It remains to be seen, but those preventative efforts could be beneficial to some of the cybersecurity stocks residing on the QQQ and QQQM rosters.

“Military, intelligence, and law enforcement officials are preparing for a potential wave of cyberattacks and influence operations aimed at undermining confidence in the U.S. election infrastructure. Threats originate from foreign and domestic actors and include tampering with voting systems, misinformation, disinformation, and physical violence,” adds Moody’s.

What’s clear is that state and local governments need to be aware of election cyber risk and by addressing that issue before it becomes a problem, voters’ confidence in election integrity can be improved. Of course, preventing cyber-crimes requires spending to that effect and that could be good news for some QQQ and QQQM components. Both ETFs track the Nasdaq-100 Index (NDC) so their rosters are the same.

“Federal initiatives paired with increased funding to states would help mitigate cyber-related credit risks. State and nongovernmental organization initiatives that target cybersecurity and misinformation would also help reduce election risk,” concludes Moody’s.

For more news, information, and strategy, visit the ETF Education Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X