Cybersecurity is likely going to become an industry ripe for the buying.
Your best bet is not to try to find the one winner, because when all is said and done, all three of these companies could very well become a property of legacy name like HP.
That’s why you’ll want to take a broad-based approach that seeks to capture gains on the industry as a whole, even if it means forgoing those big intra-day gains for a little bit more stability.
That’s why you’ll want to give PureFunds ISE Cyber Security ETF (NYSE Arca: HACK) a look.
“One of the things I really like about HACK is its industry-specific diversity,” said Money Morning Small-Cap Investing Specialist Sid Riggs, who has been singing cybersecurity’s praises for months now. “HACK is most heavily invested in the systems software industry, which will prove to be a great stabilizing force for the fund. That’s the sphere of the IT sector that’s been growing most reliably since 2010, with the consulting firm Gartner Inc. already forecasting enterprise software to grow by 7.3% in 2015.”
Bottom Line: It can be tempting to buy FEYE stock, or any of the companies in the cybersecurity space, simply because the news headlines are championing the cause. But these companies are not without volatility, as FEYE stock in 2014 proved. The industry is promising, but picking one company and declaring it the winner now leaves your portfolio open to big potential losses. You’re better off going with a broad play – a cybersecurity ETF like HACK works well.
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