LFA Lugano Financial Advisors SA, a leading financial advisory firm, has recently announced that it has reduced its stake in the First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) by 8.6% during the 4th quarter of the previous year. According to their disclosure with the Securities & Exchange Commission, the fund now owns 79,179 shares of the company’s stock after selling off 7,437 shares during the said period. The First Trust NASDAQ Cybersecurity ETF presently accounts for about 2.3% of LFA Lugano Financial Advisors SA’s portfolio and is its 16th biggest position.
The market trends related to cybersecurity stocks are ever-changing and this leads investors to seek advice from top-performing research analysts who can recommend good investment options for their clients. Bloomberg has been keeping track of these experts and has identified five main stocks that analysts are whispering with high expectations for their clients to buy. However, First Trust NASDAQ Cybersecurity ETF currently does not make into this list despite being an important player in the industry.
Managed by First Trust, CIBR was launched on July 7, 2015, as an exchange-traded fund based on the Nasdaq CTA Cybersecurity index. It tracks a liquidity-weighted index that targets companies actively involved in providing cybersecurity services and solutions.
Although top-rated analysts consider other stocks better investment opportunities at present, it doesn’t necessarily mean that First Trust NASDAQ Cybersecurity ETF is unattractive. The performance of cybersecurity stocks tends to fluctuate due to rapid technological advancements and changes in market dynamics. Therefore, expert investors suggest keeping a diversified portfolio that includes promising options like CIBR to have exposure to strong future growth potential within this fast-evolving sector.
In conclusion, while LFA Lugano Financial Advisors SA reduced its stake in CIBR during Q4-2020; there remain compelling reasons as to why investors should consider this ETF as an option. The cybersecurity market has been on an upward trajectory, gaining momentum during the pandemic era fueled by the adoption of digital connectivity worldwide. Despite being absent from the list of top-rated analysts’ five preferred stocks, First Trust NASDAQ Cybersecurity ETF remains an essential and relevant player in the cybersecurity industry that investors should watch closely.
Institutional Investors Increasing Holdings in First Trust NASDAQ Cybersecurity ETF Amidst Digitalization Trend
Recently, several institutional investors and hedge funds have made changes to their holdings in First Trust NASDAQ Cybersecurity ETF. River Street Advisors LLC, for instance, has purchased a new position in the ETF valued at $264,000 during the fourth quarter. Meanwhile, Nations Financial Group Inc. IA ADV saw a 1.9% growth in its holdings during the same period and now owns 13,621 shares of the company’s stock worth $527,000 after purchasing an additional 253 shares.
Other investors that have increased their positions in First Trust NASDAQ Cybersecurity ETF include Commonwealth Equity Services LLC and Benjamin F. Edwards & Company Inc., which have grown their holdings by 0.7% and 4.0%, respectively. Similarly, Richard W. Paul & Associates LLC bought a new position in the ETF valued at $54,000 during the fourth quarter.
Given these developments, some experts predict that First Trust NASDAQ Cybersecurity ETF is on track to become one of the go-to investment options for portfolio managers who seek exposure to this rapidly growing industry.
NASDAQ CIBR traded up by $1.14 on Friday and closed at $39.58 with 167,612 shares of stock changing hands on that day alone – compared to its average volume of 467,794 shares per day over the past year.
It’s essential to note that although First Trust NASDAQ Cybersecurity ETF currently has a “hold” rating among analysts, top-rated analysts believe that other stocks may offer better buying opportunities.
Overall, it seems these institutional investors have spotted an opportunity in cybersecurity as more businesses shift towards digitalization amidst ongoing work from home situations brought on by COVID-19 pandemic measures This trend means that companies will need higher levels of cyber protection against various online threats such as hacking or data breaches.
As we move into this new era where technology continues to dominate our daily lives , there is no doubt that investing in cybersecurity is vital. Institutions that are willing to take a chance and invest in this potentially lucrative field could see significant returns in the coming years, and it seems that First Trust NASDAQ Cybersecurity ETF is poised to lead the way.
