In this video clip from "Ask Us Anything" on Motley Fool Live, recorded on May 5, Fool.com contributor Nick Rossolillo discusses a few factors that make cybersecurity ETFs an excellent investment.
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Nick Rossolillo: Cybersecurity, up to this point, is not a winner-take-all industry, and I don't think it will be ever a winner-take-all industry. There's multiple reasons why that is.
The first reason is you have to have different cybersecurity products for different parts of the tech ecosystem. So like, our personal computers are going to be protected differently from a big organization's data center. Totally different type of cybersecurity.
Also part of cybersecurity, redundancy is important, is an important part of the industry. You don't just have one security vendor. You might have multiple vendors so that if one system fails, you might have another system as backup to kind of keep the system safe.
So it's not a winner-take-all industry. I don't think it will be, as is usually the case with most internet businesses. There's exceptions obviously, but most of the time, it's not winner-take-all. There can be lots of big winners, and so, the ETF approach I think works fantastic if you're not interested in digging into the individual companies there.