Unleash the Power of Cybersecurity: Invest smartly with the CI Digital Security Index ETF (CBUG)

The digital age has unleashed a wave of productivity and creativity since the late 1980s, as private enterprises and individuals embraced the benefits of enhanced access to information, improved efficiency, and a global reach for their products or services.

Cybercrimes are on the Rise

The mass adoption of the Internet further enhanced these competitive forces in the 2000s, as new industries emerged in e-commerce, digital payment systems, and social media sites, aiming to lower costs, increase the speed and efficiency of doing business, and connect people worldwide.

However, as these new industries grew, so did the opportunity for criminal or unethical behavior in the digital realm, and a new shadow industry evolved alongside these innovative technologies. Cybercrime traces its origins to the 1830s when the French telegraph system was accessed by thieves who managed to steal financial markets data and has evolved over the centuries as new communications technologies were developed. Since the start of the digital age, email scams and computer viruses have become commonplace for enterprises and individuals alike, while new techniques such as ransomware have recently begun wreaking havoc on structurally important infrastructure systems, financial institutions, and personal devices.

Cybercrime statistics paint an alarming  picture, as the frequency and magnitude of cyber-attacks have been growing as per recent reports and charts:

Percentage of organizations affected by at least one successful attack

Source: CyberEdge Group 2021 Cyberthreat Defense Report

Ransom Payments by Quarter

Source: Coveware’s Q3 2021 Ransomware Marketplace report

The growing need for cybersecurity measures

As instances of cyber-attacks continue to increase worldwide, the demand for adequate protection will rise in parallel, creating an enticing opportunity for investors. Projections indicate the global cybersecurity market will grow to $425 billion by 2030, representing a CAGR of 13.8%, far outpacing the growth of the broad IT sector.

Industry CAGR over the next decade

Source: The Information Technology Industry is Expected to Growth (globenewswire.com)
Source: Global Cyber Security Market Size [2023-2030] to Reach USD (globenewswire.com)

The catalyst for this growth lies in the expansion of global e-commerce platforms, cloud solutions, and developments in AI, which will require close monitoring and robust cybersecurity measures to ensure data security.

Furthermore, along with an increased need for cybersecurity solutions from the private sector, governments worldwide will require significant updates to digital infrastructure and security, as state-sponsored attacks have increased in frequency, particularly since the start of the war in Ukraine.

Governments worldwide are recognizing the urgency to update digital infrastructure and security, given the rise in state-sponsored attacks. Countries like France, Germany, and Israel have already begun investing in modernizing their data solutions and security. In the United States, the government’s 2024 IT budget is expected to grow to $74 Billion, representing a 13% increase YoY as per White House funding reports.

Recent cyber-attacks and data breaches in the Canadian financial and retail sectors have also raised concerns, and are likely to be met with budget increases towards cybersecurity and IT solutions in order to protect clients’ personal data.

An Opportunity for Investors

The expected increase in private and government spending on cybersecurity solutions, coupled with the above-average growth rates expected over the next decade provide investors with a unique opportunity to position their portfolios towards the future of cybersecurity. The CI Digital Security Index ETF (CBUG) invests in a broad portfolio of global companies involved in the development of secure data solutions and cybersecurity software, allowing investors to gain exposure to the world’s cybersecurity leaders.