Investing in Cyber Defense and Security

The cyber space has become a battlefield, with escalating threats targeting individuals, businesses, and governments alike.

The sophistication of cyber attacks continues to grow, making protection a universal priority across all sectors. Cyber protection is no longer a niche concern but a foundational requirement for modern economies and national security.

Cyber defense and security stand at a pivotal moment, driven by escalating threats and increasing global defense commitments. Our investment approach, built around six critical subthemes, allows comprehensive exposure to this dynamic sector. Cyber defense and security is not just an investment theme—it is essential for protecting the future.

Targeted thematic investment approach

For investors who want to invest in this structural theme, the Vontobel Cyber Defense & Security Strategy could represent an attractive investment opportunity. Our solution aims to prioritize the most critical subthemes and to identify key beneficiaries in the Cyber Defense & Security ecosystem.

Investors could benefit on six key subthemes:

• Cyber defense & space
• Identity & access
• Network security
• Threat intelligence
• Cloud & apps
• Data protection

These subthemes are directly tied to the market’s growth drivers, such as increasing cyber threats, the rise of connected devices, and growing geopolitical tensions. The strategy aims to capitalize on both the established cybersecurity market and the emerging frontier of cyber defense.

Vontobel Cyber Defense & Security Index

Capturing the Cyber Defense & Security opportunity through a targeted thematic investment approach. The Index Strategy focuses on shares of high-conviction cyber defense & security companies. It follows a targeted thematic investment approach with a focus on companies that are associated with or derive a significant proportion of their revenue from cyber defense & space, identity & access, network security, threat intelligence, cloud & apps, and data protection. The selection is based on quantitative and fundamental factors such as earnings, momentum and profitability. Subsequently, at least 60% (15 core names) of the constituents are chosen by market capitalization, while the remaining 40% (10 high-conviction picks) are selected based on discretionary convictions of the index sponsor. The maximum weight for shares and other equities in the Index is limited to 10%.