Skip to main content

August 16, 2023

Unleash the Power of Cybersecurity: Invest smartly with the CI Digital Security Index ETF (CBUG)

The digital age has unleashed a wave of productivity and creativity since the late 1980s, as private enterprises and individuals embraced the benefits of enhanced access to information, improved efficiency, and a global reach for their products or services.

Cybercrimes are on the Rise

The mass adoption of the Internet further enhanced these competitive forces in the 2000s, as new industries emerged in e-commerce, digital payment systems, and social media sites, aiming to lower costs, increase the speed and efficiency of doing business, and connect people worldwide.

However, as these new industries grew, so did the opportunity for criminal or unethical behavior in the digital realm, and a new shadow industry evolved alongside these innovative technologies. Cybercrime traces its origins to the 1830s when the French telegraph system was accessed by thieves who managed to steal financial markets data and has evolved over the centuries as new communications technologies were developed. Since the start of the digital age, email scams and computer viruses have become commonplace for enterprises and individuals alike, while new techniques such as ransomware have recently begun wreaking havoc on structurally important infrastructure systems, financial institutions, and personal devices.

Cybercrime statistics paint an alarming  picture, as the frequency and magnitude of cyber-attacks have been growing as per recent reports and charts:

Percentage of organizations affected by at least one successful attack

Chart illustrating Percentage of organizations affected by at least one successful attack

Source: CyberEdge Group 2021 Cyberthreat Defense Report

Ransom Payments by Quarter

Graph illustrating Ransom Payments by Quarter

Source: Coveware’s Q3 2021 Ransomware Marketplace report

The growing need for cybersecurity measures

As instances of cyber-attacks continue to increase worldwide, the demand for adequate protection will rise in parallel, creating an enticing opportunity for investors. Projections indicate the global cybersecurity market will grow to $425 billion by 2030, representing a CAGR of 13.8%, far outpacing the growth of the broad IT sector.

Industry CAGR over the next decade

Chart illustrating Industry CAGR over the next decade

Source: The Information Technology Industry is Expected to Growth (
Source: Global Cyber Security Market Size [2023-2030] to Reach USD (

The catalyst for this growth lies in the expansion of global e-commerce platforms, cloud solutions, and developments in AI, which will require close monitoring and robust cybersecurity measures to ensure data security.

Furthermore, along with an increased need for cybersecurity solutions from the private sector, governments worldwide will require significant updates to digital infrastructure and security, as state-sponsored attacks have increased in frequency, particularly since the start of the war in Ukraine.

Governments worldwide are recognizing the urgency to update digital infrastructure and security, given the rise in state-sponsored attacks. Countries like France, Germany, and Israel have already begun investing in modernizing their data solutions and security. In the United States, the government’s 2024 IT budget is expected to grow to $74 Billion, representing a 13% increase YoY as per White House funding reports.

Recent cyber-attacks and data breaches in the Canadian financial and retail sectors have also raised concerns, and are likely to be met with budget increases towards cybersecurity and IT solutions in order to protect clients’ personal data.

An Opportunity for Investors

The expected increase in private and government spending on cybersecurity solutions, coupled with the above-average growth rates expected over the next decade provide investors with a unique opportunity to position their portfolios towards the future of cybersecurity. The CI Digital Security Index ETF (CBUG) invests in a broad portfolio of global companies involved in the development of secure data solutions and cybersecurity software, allowing investors to gain exposure to the world’s cybersecurity leaders.

About the Author

Jaron Liu

Jaron Liu

Director, ETF Strategy
CI Global Asset Management

Jaron Liu is a Director of ETF Strategy at CI GAM and is responsible for growing the ETF business by setting and executing the ETF sales strategy as well as supporting the ETF sales team. Prior to joining CI GAM, Jaron worked as an analyst within product management for one of the largest global asset managers where he focused on ETFs. Jaron graduated from the University of Waterloo with a degree in Honours Economics and is a CFA charter holder.


Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (ETFs). You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Please read the prospectus before investing. Important information about an exchange-traded fund is contained in its prospectus. ETFs are not guaranteed; their values change frequently, and past performance may not be repeated.

This document is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Market conditions may change which may impact the information contained in this document. All charts and illustrations in this document are for illustrative purposes only. They are not intended to predict or project investment results. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.

Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.

The CI Exchange-Traded Funds (ETFs) are managed by CI Global Asset Management, a wholly-owned subsidiary of CI Financial Corp. (TSX: CIX). CI Global Asset Management is a registered business name of CI Investments Inc.