It tends to be aging, then aging.
The cybersecurity sector is one of these unique niche sectors and I think it will be one of the best performing sectors in the economy in the long run. Spending on cyber security solutions only increases over time. Technology companies are getting bigger and more sophisticated, but spending on this essential need isn’t keeping up.
For those looking to take advantage of the mundane tailwinds of cybersecurity, there are many great options. This article describes Canadian and US ETFs to consider.
Evolving Cyber Security ETFs
The first Canadian ETF to tackle the long-term growth theme of cybersecurity Evolving Cyber Security Index ETFs (TSX: CYBR).. This is an ETF that has seen a large inflow of capital in recent years. Certainly, there is a great desire to come into contact with this mundane theme. Cybersecurity companies need to play an important role in the economy if government agencies and big tech appear to be under constant attack.
It’s amazing how tech companies today spend relatively limited spending on cybersecurity. Therefore, we expect more pies to be chased by these companies. This is a unique growth sector and Evolve ETF has an excellent corporate portfolio in this area. The ETF is listed on the TSX, giving Canadian investors access to these companies without having to enter into Forex.
This is certainly an ETF Encourage Canadian investors to invest in TFSA Leave it as it is. In fact, Evolve Cyber Security ETFs are highly diversified, and good core holdings can generate long-term portfolio outperformance. This is one of the long-term growth investments I think is suitable for my grandchildren.
iShares Cyber Security ETF
In the United States iShares Cyber Security and Tech ETFs (NYSE: IHAK) is my number one way to recreate this secular trend. This ETF has incredible fundamentals compared to its growth potential. Trading at 3.8x sales and 11x long-term revenue, it’s a cheap way to achieve growth in this sector. Analysts expect long-term sales and cash flow growth to be 8.4% and 5.7%, respectively. These are incredible numbers to consider for those with a growth-minded mindset.
Surprisingly, this ETF actually pays a yield of 0.5%. That’s a small yield. However, if you believe in the long-term growth potential of the companies in this portfolio, this yield can increase significantly over time.
I think the diversity of this portfolio, the quality of our largest holdings, and our long-term growth prospects make this ETF stand out. Therefore, for investors looking to put in money to work in a US dollar investment account, this is one of my best choices for growth.
Secular trends, like cyber security? There are other excellent strains to consider in a similar parabolic growth trajectory!
Ian Butler, a well-known Canadian investor, has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
The Motley Fool Canada offers 65% off the list price of the best stock selection service, plus a full membership fee refund guarantee for the amount you pay for the service. Click here to find out how to take advantage of this.
Stupid contributor Chris Macdonald There are no positions in any of the listed stocks.
Two cybersecurity ETFs with the potential for parabolic growth at today’s dirt cheap prices!
https://www.fool.ca/2021/01/29/2-cybersecurity-etfs-with-parabolic-growth-potential-at-dirt-cheap-prices-today/ Two cybersecurity ETFs with the potential for parabolic growth at today’s dirt cheap prices!