Thanks to accelerated digitalization globally and the introduction of breakthrough technologies, the tech sector is well-poised for considerable growth and expansion in the foreseeable future. Given the industry’s rosy prospects, it could be wise to invest in the best-performing First Trust NASDAQ Cybersecurity ETF (CIBR – Get Rating) for solid returns and portfolio diversification.
However, ARK Innovation ETF (ARKK – Get Rating) is best avoided now.
Before discussing the fundamentals of these ETFs, let’s discuss why the tech sector is thriving.
When the COVID-19 pandemic broke out, much of the world moved online, speeding up digital transformation by several years. According to a report by Grand View Research, the global digital transformation market is expected to reach $4.62 trillion by 2030, growing at a CAGR of 26.7% during the forecast period (2023-2030).
Meanwhile, the U.S. digital transformation market is projected to grow at a CAGR of 23.1% from 2023 to 2030.
The digital transformation market’s growth can be attributed to the rapid adoption of advanced technologies, including cyber security, Artificial Intelligence (AI), Business Intelligence (BI), cloud, big data analytics, the Internet of Things (IoT), blockchain, Augmented Reality and Virtual Reality (AR&VR), and machine learning.
The pandemic forced businesses to opt for cloud-based platforms and services for remote working. Given the cloud’s enormous potential, approximately 94% of enterprises use cloud services as of 2023, while 67% of enterprise infrastructure is now cloud-based.
Further, businesses increasingly utilize AI, big data, and other cutting-edge technologies to collect real-time information, get valuable insights, enhance understanding of client needs, and drive overall efficiency.
With the rising number of cyber attacks due to the rapid increase in e-commerce platforms, the emergence of smart devices, and the growing cloud deployment, the cyber security market’s prospects look bright. Also…
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