First cyber-security fund floated on London Stock Exchange

News by Max Metzger

The London Stock Exchange has floated a cyber-security Exchange Traded Fund (ETF)  this week, marking the first time a fund of this kind has found its way on to the LSE.

This investment fund is the product of a partnership between ETF securities, an English issuer of exchange traded funds and ISE ETF Ventures, an index provider based in America where cyber-security ETF's are far more popular.

This new entry onto the LSE has been welcomed by members of the cyber-security industry. 

Nithin Thomas, CEO of SQR systems, was reported in the trade press as saying: “The strategic importance of cyber-security for the country is enormous, and a dedicated fund listed on LSE is a step in the right direction. I hope we will see much more activity in the coming months with funds dedicated to early stage companies as it is vital that we are able to call on home-grown expertise and technology rather than importing it from overseas.”

It's a sector that will grow, according to ETF Securities which says that the cyber-security sector will have a compound annual growth rate of nearly 10 percent and will reach a value of £112 billion by 2020.

Adam Laird, a passive investment manager at Hargreaves Lansdown, told Reuters that this new development is significant within the current market: "I think the timing really reflects that this is a very real concern to a lot of companies, and many investors want to be part of that story and be part of the defence (sector)."

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