While I do agree broadly that today’s stock market is more beneficial for stock pickers than ever before due in large part to the rise of exchange traded funds (ETFs), I do also believe that focusing on themes rather than individual stocks, in many cases, can also provide a nice base from which stock pickers can build a portfolio from.
In this article, I’m going to discuss one such ETF.
The Evolve Cyber Security Index ETF (TSX:CYBR) is a highly diversified portfolio of companies operating in the cyber security niche sub-sector.
The rise of cloud computing solutions and off-site data forms has required corporations profiting from the boom to also invest in appropriate cyber security measures to keep the data of its customers safe.
My take on cyber security spending is that it is necessary and will therefore continue to increase in lockstep with, or perhaps at an even faster rate, that growth in cloud computing, or technology in general in the years to come.
These returns obviously come with a high degree of volatility. Therefore, if you’re an investor on the more risk-averse end of the spectrum, I’d advise taking a smaller position or looking elsewhere for growth.
This ETF is also not a good dividend option for investors with income needs heading into retirement, so it may not be a great option for all investors. That said, for those with a long investment time horizon and the ability to be patient, this is a great option every investor should consider.
Invest wisely, my friends.
