The protection against cyber risks is essential for every organization that relies on information technology, and investors are increasingly concerned about cyber risks to their investments. Cyber security companies prevent stakeholders from losing valuable information and money in cyber-attacks. According to Statista, the projected revenue in the Cybersecurity market is US$159.80bn in 2022. An annual growth rate (CAGR 2022-2027) of 13.33% in earnings is expected, resulting in a market volume of US$298.70bn by 2027.1 Looking into this growth opportunity, LGIM launched the L&G Emerging Cyber Security ESG Exclusions UCITS ETF, tracking Solactive Emerging Cyber Security Index.
The Index aims to track the performance of a basket of stocks of companies that are actively engaged in different verticals of the cyber security industry. To be eligible for inclusion in the database, the company must fulfill at least one of the following criteria: a) Engage in key verticals of cyber security products and/or services, or in cyber security-related technologies, as determined by the data provider. b) Derive revenues from or have business operations, but do not currently derive revenues, in the provision of cyber security-related products and/or services.
Timo Pfeiffer, Chief Markets Officer of Solactive, comments: “The importance of effective cybersecurity management is a crucial factor in a company’s long-term success as it is an unquestionable minimum requirement in today’s interconnected economy. With the evolution that we have been witnessing in the technological world, with prominent topics and changes, such as Web 3.0 and Metaverse, on the horizon, cybersecurity is increasingly needed and indispensable by both companies and individuals, bringing great potential to this market. We’re very happy that LGIM chose us to launch this complimentary product to their innovative thematic offering.”
