Worldwide spending on cybersecurity products and services is expected to surpass $1 trillion from now until 2021 according to Cybersecurity Ventures. The figure was actually considered conservative when taking into account the increase in cybercrime and the exposure of billions of unprotected devices. And of course there are the larger hacks that have done major damage to private entities like Equifax Inc. and Uber just last year.
Investors should jump into this market with the First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR). The stock has increased 2.75% in 2018 thus far as of early afternoon trading on January 4. Shares rose 16.9% in 2017.
The top holding is California-based VMWare Inc. at around 6.2%, a subsidiary of Dell Technologies Inc. that provides cloud computing and platform virtualization software and services. Other top holdings include Cisco Systems Inc. and Palo Alto Networks Inc.
Robert Herjavic, CEO and Founder at Herjavic Group, recently said in an interview that compliance is driving 50% of growth in the cybersecurity market. Cybercrime damages are projected to exceed $6 trillion by 2021, doubling the $3 trillion mark set in 2015.
Cybersecurity will continue to demonstrate impressive growth into 2020 and beyond. The First Trust NASDAQ Cybersecurity ETF offers investors exposure to some of the top tech security entities on the market. Investors should be confident in the growth of this industry going forward.