ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • 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
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Future ETFs Channel
  2. Get Ready for Cybersecurity Awareness Month With GTEK
Future ETFs Channel
Share

Get Ready for Cybersecurity Awareness Month With GTEK

Tom LydonSep 22, 2022
2022-09-22

October is a week away, and with the arrival of the tenth month of the year comes the arrival of Cybersecurity Awareness Month.

Many investors might not know it, but Cybersecurity Awareness Month has been around for nearly two decades, and it’s more relevant than ever. This year, however, market participants are grappling with the fact that like other growth assets, cybersecurity names are struggling.

Risk-tolerant investors can wade back into the group in indirect fashion with the Goldman Sachs Future Tech Leaders Equity ETF (GTEK C+). As its name implies, GTEK is not a dedicated cybersecurity exchange traded fund, but a fair number of its holdings hail from that industry, levering the fund to a potential rebound. Importantly, the long-term case for cybersecurity investing remains compelling.

“The number and sophistication of cyberattacks have been growing for years, spurred by the rise of big data, cloud computing and remote work. With more data being accessed from more places than ever before, the complexity of securing digital systems has increased exponentially. The result: strong and growing demand for security services that could boost cybersecurity-related stocks for years to come,” according to Morgan Stanley research.

One way of looking at cybersecurity stocks today is that while growth equities are suffering at the hands of rising interest rates and inflation could be forcing corporate decision-makers to reduce spending in some areas, they don’t have that luxury when it comes to cybersecurity. Regardless of inflationary pressures and other macroeconomic concerns, companies can’t afford to skimp on cybersecurity expenditures.

“As the world creates more data and accesses networks in more ways, cybercriminals find new vulnerabilities to exploit. The number of significant cyberattacks has increased from just four major incidents in 2006 to a peak of 134 in 2020,” added Morgan Stanley. “As the number of attacks has grown, so has the cost to the victims. IBM found that the average cost of a data breach in the U.S. has grown from $3.5 million in 2006 to $9.4 million in 2022, a nearly 170% increase in 16 years.”

Those data points and others suggest that the growth trajectory for cybersecurity providers is enviable, potentially highlighting related long-term opportunities with GTEK.

“That growth is likely to continue in the coming years. In a recent survey of corporate chief information officers, Morgan Stanley Research showed cybersecurity spending appears poised to grow faster than other software categories. It’s also likely to be more resilient at a time when broader technology budgets could come under pressure, with respondents pointing to a lower likelihood of security spending cuts, compared to other areas in software,” concluded Morgan Stanley.

For more news, information, and strategy, visit the Future ETFs 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
  • © 2023 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