TU IS
Cybersecurity is one of our favourite growth themes for a medium-to-long-term investment horizon. Not only has growth in this sector been particularly resilient to the current economic slowdown, but valuations have also become attractive relative to long-term growth prospects. For investors looking for a cost-effective and convenient way to build portfolio exposure to this theme, we think that the Global X Cybersecurity ETF (NASDAQ:BUG) could be a great choice.
Growth Prospects Not Fully Appreciated By Investors
Despite the increase in frequency and cost of data security breaches across government agencies and corporate enterprises in recent years, there is still significant underinvestment in cybersecurity.
So far in 2022, there have already been multiple major cyber attack incidents that have cost U.S enterprises millions in damages. According to IBM’s Cost of a Data Breach Report 2022, the average cost of a data breach in the U.S is around US$9.4 million, which is more than twice the global average of US$4.4 million. The T-Mobile (TMUS) data breach in 2021, which affected around 80 million U.S residents, ended up costing the company US$350 million to settle a class…
