China-linked Salt Typhoon hackers breached nine companies, Russian-backed groups targeted Ukrainian military devices via Starlink, and Cyberhaven’s browser extension fell victim to hijacking.

These headlines kept newsrooms abuzz during the holiday season. Evidently, cybercrimes are here to stay and getting increasingly sophisticated to boot, thus necessitating larger investments in cybersecurity measures.

Here are three ETFs with exposure to cybersecurity companies for investors who don’t want to choose specific stocks, but want to reap the benefits of a hot market:

Global X Cybersecurity ETF (NASDAQ:BUG) boasts assets of $806.52 million under management and an expense ratio of 0.50%. Its impressive portfolio of stocks includes the biggest names in the cybersecurity sector across the U.S., Israel, Japan and South Korea.

The "O.G." cybersecurity-focused fund, the Amplify Cybersecurity ETF (NYSE:HACK) was the first ETF to hop on the cybersecurity niche bandwagon. It derives its investment strategies from the Nasdaq ISE Cyber Security Select Index, and has $1.93 billion assets under management. 81.5% of the fund is dedicated to large-cap ($10 billion and more) stocks.

Why Investing in Cybersecurity is Important

The growth in the number of generative A.I. tools and platforms is opening doors for information technology reinvention. Simultaneously, cybercriminals have been adopting the same upgraded technology to up their games.

In May, the FBI warned that attackers are now using A.I. tools to upgrade phishing methods. "As technology continues to evolve, so do cybercriminals’ tactics. Attackers are leveraging AI to craft highly convincing voice or video messages and emails to enable fraud schemes against individuals and businesses alike," said FBI Special Agent in Charge Robert Tripp.

“These sophisticated tactics can result in devastating financial losses, reputational damage, and compromise of sensitive data," read an excerpt from its note to media last May.

Moreover, Statista projects that the global “Estimated Cost of Cybercrime” will rise consistently between 2024 and 2029, increasing by $6.4 trillion (69.41%) to reach a peak of $15.63 trillion by 2029.

With critical infrastructure, government data, education, and personal data caught in the crosshairs, investments in cybersecurity have become the need of the hour, bringing exponential growth potential to this market.

See Next:

• Indexperts Kicks Off 2025 With 3 ETFs Offering Growth, Stability, Income During Market Volatility

Photo: Shutterstock