The digitization of our world has delivered prosperity, ingenuity, and revolutionary mass communication. However, for all the advantages of the digital world, it has also left people, as well as private and public entities at risk of cyber criminals and state-sponsored cyber attacks. The 2020s has seen a slew of major data breaches at organizations like the International Committee of the Red Cross, which led to the private data of more than 515,000 people to be compromised.
In this new world, investors should look to companies that are working to provide defense to individuals and larger entities. Cyber security is going to be essential in the years and decades to come, and Canadians should look to get in on the gold rush.
A recent report from ResearchAndMarkets valued the global cyber security market at US$296 billion in 2022. The report projected that the market would achieve a compound annual growth rate (CAGR) of 7.8% from 2022 through to 2030. That would see the market rise to US$538 billion by the end of the forecast period.
Investors who want to get in on this exciting sector might want to snatch up the Evolve Cyber Security ETF (TSX:CYBR). This exchange-traded fund (ETF) seeks to invest primarily in equity securities of companies located domestically or internationally that are involved in the cyber security industry. Shares of this ETF have climbed 15% in 2023 as of close on Monday, June 26.
Some of the top holdings in this fund include companies like Zscaler, Palo Alto Networks, Crowdstrike Holdings, and Okta.
