Cybersecurity Trends: Top 10 ETFs For Cyber Defense

Hamna Asim
15 min read

In This Article:

In this article, we discuss 10 ETFs for cyber defense. If you want to skip our discussion on the cybersecurity industry, head over to Cybersecurity Trends: Top 5 ETFs For Cyber Defense. 

In 2024, Gartner predicts several significant cybersecurity trends driven by Generative AI (GenAI), unsecure employee behavior, third-party risks, continuous threat exposure, boardroom communication gaps, and identity-first security approaches. These trends include the rapid evolution of Generative AI, increasing reliance on outcome-driven metrics (ODMs) to demonstrate cybersecurity investment's tangible protection levels, a shift towards behavioral change to reduce cybersecurity risks, the emphasis on resilience-oriented investments in light of third-party cybersecurity incidents, the adoption of continuous threat exposure management (CTEM) to evaluate and mitigate asset vulnerabilities, and the rising importance of an identity-first approach to security, particularly focusing on Identity and Access Management (IAM) to improve cybersecurity and business outcomes. 

In recent years, the cybersecurity economy has experienced rapid growth, outpacing the overall world economy significantly. However, this growth has been uneven, with larger and more developed economies reaping most benefits while others lag behind. The 2024 Global Cybersecurity Outlook (GCO) by the World Economic Forum highlights a concerning trend – organizations maintaining minimum viable cyber resilience are rapidly diminishing, down 31% since 2022. This widening gap between cyber-resilient organizations and those struggling to keep pace poses serious threats to the integrity of the entire cybersecurity ecosystem. 

The uneven distribution of cyber resilience can be attributed to several factors. One significant factor is the cost associated with accessing cyber services, tools, and talent. Larger and more financially robust organizations are better equipped to invest in robust cybersecurity measures, leaving smaller and less affluent organizations at a disadvantage. Additionally, disparities in cyber skills and insurance adoption further exacerbate the divide. Smaller organizations, which are often more vulnerable to cyber threats, are three times less likely to carry cyber insurance compared to larger enterprises, creating a significant gap in risk mitigation strategies. Geographical disparities also play a role, with regions like Latin America and Africa reporting fewer cyber-resilient organizations compared to North America and Europe. This "cybersecurity poverty line" not only reflects financial constraints but also encompasses issues like the cyber skills gap and access to innovative technologies. The lack of sufficient cyber resilience among smaller organizations is particularly troubling, given the interconnected nature of the digital ecosystem. Despite some organizations seeing improvements in cyber resilience, the overall trend indicates a widening gap between cyber-resilient leaders and those struggling to adapt. While competition is healthy in traditional economic contexts, cyber leaders recognize that the interconnectedness of the digital landscape makes this growing divide more harmful than beneficial.

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