Want to Invest in Cybersecurity but Don't Know How? Try This ETF
Cybersecurity has been described as a new type of insurance for businesses. In the same way that people purchase car insurance to help prevent having to pay large expenses in the event of an accident, businesses purchase cybersecurity products and services for a similar reason. Cybersecurity attacks can be very costly for a business, both financially and reputationally.
The average cost of a single business-related data breach in 2006 was $3.6 million. In 2022, the cost jumped to $9.44 million. When combining all these breach costs together, Cybersecurity Ventures estimates that the global cost of cybercrimes will increase at a compound annual growth rate of 15% over the next few years and total nearly $10.5 trillion by 2025. It's no wonder cybersecurity has become indispensable for so many businesses.
Where there's huge demand, there's money to be made for companies and their investors. But which company should you invest in? That's a question not easily answered. The easy answer may, in fact, be to just invest in cybersecurity broadly instead of focusing on individual companies. A great way to do that is through the Vanguard Information Technology ETF (NYSEMKT: VGT).
Source Fool.com
