Alternative Investments/Digital Assets: WisdomTree’s CyberSecurity ETF Addresses Vulnerabilities From WFH
The ubiquitous spread of Work-from-Home (WFH) provides threat actors with a once-in-a-generation opportunity.
The new WisdomTree Cybersecurity Fund (WCBR) ETF seeks to exploit the megatrend towards cybersecurity following the pandemic in 2020. The seemingly overnight pivot to work-from-home, distance learning, and digital communications have laid bare the security vulnerabilities at enterprises across the globe. (Intrado GlobeNewswire)
Even governments are not safe. The recent massive SolarWinds breach of U.S. government and corporate systems detected by cybersecurity firm FireEye is relevant. It shows the importance of robust and comprehensive information security and privacy risk management programs.
“Security and privacy are at the epicenter of our increasingly complex world of interconnected systems and devices,” says WisdomTree. “As dependency on information networks and technology increases, the required investment to protect, defend, and audit the integrity of these systems and the data that resides in them will naturally continue to increase.”
WisdomTree Cybersecurity Fund (WCBR) ETF
To be listed on the NASDAQ, the ETF charges an expense ratio of 0.45%.
It tracks the price and yield performance, before fees and expenses, of the WisdomTree Team8 Cybersecurity Index (WTCBR). The index is a basket of cybersecurity companies driving key developments and innovations in the industry. It is constructed to track exposure to the cybersecurity megatrend.
“Cybersecurity and security-oriented technology are central to remote work environments, and the more reliance we have on remote systems, the greater the importance and required investment in protecting the security of these infrastructures,” explained Jeremy Schwartz, WisdomTree Global Head of Research. “The WisdomTree Cybersecurity Fund provides exposure to global innovations in cybersecurity via a rules-based process and measures the exposure of public cybersecurity companies, their products and services, to these key development areas.”
Team8, which will provide data for constructing the index, has identified seven key cybersecurity themes. These are:
- Cloud Security
- Security of things
- Perimeterless world
- Privacy and digital trust
- Resilience and recovery
- Smarter security
Nadav Zafrir, Managing Partner at Team8, said, “In 2020, a rapid pace of digital transformation dramatically accelerated, and trust in our digital infrastructure went from very important to absolutely critical. Amidst unprecedented challenges, remaining digitally connected fostered impressive levels of functionality driven by agility and, in many cases, kept the lights on. This apparent digital resilience mustn’t fool us. Maintaining trust in our infrastructure is achievable but requires we have our eyes wide open and an immense cyber defense effort. We have partnered with WisdomTree to highlight the trends and innovative solutions we believe will enable a secure and resilient digital future.”
Related Story: Suspected Russian Hack Attack Ignites Cybersecurity ETFs
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