Invest in Cybersecurity With This Tech-Focused ETF

Did you know that globally, companies spend more than $200 billion on cybersecurity each year. And by 2026, analysts project that spending could grow to $300 billion. As more businesses rely on cloud-based technologies and artificial intelligence, demand for cybersecurity is likely only to grow higher in the long run, making this a promising area of IT to invest in.

One way for investors to take advantage of these attractive long-term trends is to invest in cybersecurity stocks. And you can hold a diverse portfolio of cybersecurity stocks by investing in an exchange-traded fund (ETF) such as the First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR). In that fund, you’ll gain exposure to many of the top names in cybersecurity, including CrowdStrike Holdings (NASDAQ:CRWD), Palo Alto Networks (NASDAQ:PANW), Cisco Systems (NASDAQ:CSCO), and many others. There are 30 holdings in the fund so it isn’t overly diverse but at the same time, it gives you the best and brightest cybersecurity stocks. You won’t have to worry about picking the wrong stocks or determining which cybersecurity company is the best one, as you’ll have access to the best of the best with that ETF.

Over the past five years, the First Trust Nasdaq Cybersecurity ETF has doubled in value. It pays a modest dividend yield of 0.5% and it has an expense ratio of 0.59%.

With some great exposure to tech stocks and cybersecurity, this is a fund that can make for an ideal option for long-term investors as spending on IT is only going to grow higher in the years and decades ahead.