From Zacks: Our world is becoming increasingly digital and interconnected, bringing us new opportunities, but also creating enormous challenges. Abundance of digital information and sophisticated tools available to process and share that information make it very hard to ensure data security in this interconnected world. That is why cybersecurity threats and cyberattacks are on the rise.
Consequences of hacking can be huge and in most cases, the full extent of damage is almost impossible to be quantified and may not be known for many years. Cybersecurity has been in focus of late due to reports of Russian hacking and Yahoo’s massive data breaches. President Trump is expected to issue an executive order on cybersecurity very soon.
According to the Cisco Annual Cybersecurity Report released yesterday over one-third of organizations that experienced a breach in 2016 reported substantial customer, opportunity and revenue loss of more than 20%. It is estimated that cybercrimes will cost the global economy over $2 trillion by 2019.
Since most companies in this space are newer and riskier, it is preferable to look at a couple cybersecurity ETFs for a diversified exposure to this promising space.
The PureFunds ISE Cyber Security ETF (NYSE:HACK) closed at $28.80 on Friday, up $0.36 (+1.27%). Year-to-date, HACK has gained 8.93%, versus a 2.60% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Zacks Research.