Individual Investors

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Investing in Cyber Security with TECH

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With cyber security and ransomware again in the media recently1, we have seen an increased investor focus in this space. Over the years, cybercrime has developed in sophistication and scale to cause major economic ramifications for those affected. The risks of your social media accounts being hacked are dwarfed by the risk to other sectors like financial services, healthcare, manufacturing, government and transportation - with many countries and companies alike being labelled as “sitting ducks” for attacks.

ETFS Morningstar Global Technology ETF (ASX Code: TECH) provides exposure to quality global tech companies and captures the growing trends across the tech sector. TECH, therefore, enables investors to access individual themes, such as cyber security, through a broader sector ETF, with companies vetted for quality and value through Morningstar’s Moat methodology and price to fair value screen.

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Cloud Computing

Renting out IT capacity in the cloud rather than building it yourself - is arguably the biggest tech trend of this decade.

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Software as a Service

This service continues to grow and be a bigger piece of the pie as companies move to the cloud model and a subscription model of accessing the latest and greatest and secure software at all times.

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5G

5G and the companies that enable 5G technology, the semiconductors and required equipment are also favourable trends in technology.

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The Internet of Things

The internet of things is something we continue to hear more about - making devices smarter, with more sensors, more processors, and greater connectivity.

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Big Data

Big data is an ongoing trend - capturing and analysing data and storing it efficiently.

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Cyber security

Cyber security continues to be a focus, accelerated by the global move to remote working and the need to access networks and software from different devices and in different ways.

Trend in Focus: Cyber Security

Looking further into the theme of Cyber Security within our diversified technology fund; 4 companies, with a weight of 12.1% within TECH’s portfolio have direct exposure to the theme. Those companies are generating revenue through the defense of computers, servers, mobile devices, electronic systems, networks and data from malicious attacks similar to those we have seen recently. Palo Alto Networks, F5 networks, Okta inc and VMware inc, while perhaps not common vocabulary amongst investors, are at the forefront of this theme and have all passed Morningstar’s stringent Moat methodology and price to fair value screens to appear in the portfolio.