For professional clients only. Capital at risk.
But for cyber criminals, every device is an attack surface.
In 2023, cyber crime is estimated to cost the world:
The average cost of a data breach keeps on rising:
Healthcare data breaches remain the most costly on average
Fortunately, AI is also being leveraged by the cyber security industry
Broad global exposure to a unique basket of cyber security companies
Key features
Diversification* across countries, sectors and market capitalisation
Potential for reduced volatility versus investing in individual cyber security stocks
Quarterly rebalancing to respond to new companies and trends
Supported by a team of cyber security experts
UCITS compliant
While aiming to replicate the performance of the ISE Cyber Security® UCITS Index:
The ISE Cyber Security® UCITS Index is equally weighted, allowing the Index to capture growth trends in both established and emerging companies.
The eligibility of companies is determined by ISE Cyber Security Industry Classification, with liquidity thresholds of a minimum $100m market cap and three months' Average Daily Volume (ADV) of $1m to qualify.
The Index will exclude companies which are (i) determined by the data provider to have been involved in severe controversies (i.e. companies that have been involved in events that have a severe impact on the environment and society, posing serious business risks to the company); (ii) non-compliant with the United Nations Global Compact Principles; and/or (iii) involved in the harmful industries of tobacco, nonrenewable energy and weapons.
Source: Bloomberg; all in USD; as at 31 August 2023. Performance is shown net of fees and charges.
Past performance is not a guide to the future.
All returns, correlations and volatilities are based on data in USD. Dates are from 29 June 2018 to 30 June 2023 unless otherwise stated. Sharpe ratios are based on five-year annualised returns, five-year annualised volatility and a risk-free rate of 3.68% (average of US five-year rates over one year). The index was launched on 31 August 2015.
Historical performance. Rebased 100 = June 2018
Key risks
The value of investments and the income from them can go down as well as up and you may not get back the amount invested. Past performance is not a guide to future performance.
This document does not explain all of the risks involved in investing in the fund. No decision to invest in the fund should be made without first reviewing the prospectus, key investor information document and latest report and accounts for the fund, which can be obtained from https://fundcentres.lgim.com/.
Enter Europe’s original cyber security ETF
Learn more about the fund
Work, leisure and essential services are all dependent on digital networks
Viruses & malware
Data encryption
Email encryption
Cloud
Endpoint security
Biometrics & ID
Web filtering
Predictive analysis
The ETF offers exposure to leading cyber security companies:
ISE Cyber Security® UCITS Index has often traded above the MSCI World Index over the past five years:
Performance (%) in USD
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1
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*It should be noted that diversification is no guarantee against a loss in a declining market.
The information in this document is for professional investors and their advisers only. This document is for information purposes only and we are not soliciting any action based on it. The information in this document is not an offer or recommendation to buy or sell securities or pursue a particular investment strategy and it does not constitute investment, legal or tax advice. Any investment decisions taken by you should be based on your own analysis and judgement (and/or that of your professional advisors) and not in reliance on us or the Information.
This document has been prepared by Legal & General Investment Management Limited and/or their affiliates (‘Legal & General’, ‘we’ or ‘us’). The information in this document is the property and/or confidential information of Legal & General and may not be reproduced in whole or in part or distributed or disclosed by you to any other person without the prior written consent of Legal & General. Not for distribution to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation.
No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this document. The information and views expressed in this document are believed to be accurate and complete as at the date of publication, but they should not be relied upon and may be subject to change without notice. We are under no obligation to update or amend the information in this document. Where this document contains third party data, we cannot guarantee the accuracy, completeness or reliability of such data and we accept no responsibility or liability whatsoever in respect of such data.
This financial promotion is issued by Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.
Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No. 01009418. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119273.
© 2023 Legal & General Investment Management Limited, authorised and regulated by the Financial Conduct Authority, No. 119272. Registered in England and Wales No. 02091894 with registered office at One Coleman Street, London, EC2R 5AA.
Important information
Cyber security: An opportunity for investors
$5.0M
$4.5M
$4.0M
$3.5M
$3.0M
$2.5M
2017
2018
2019
2020
2021
2022
2023
Total cost of a data breach
Assumptions, opinions and estimates are provided for illustrative purposes only.
Healthcare
Assumptions, opinions and estimates are provided for illustrative purposes only.
Source: Cost of a Data Breach Report 2023 (ibm.com)
$0M
$10.9M
$10.1M
Financial
$5.9M
$6M
Pharmaceuticals
$4.8M
$5M
Energy
$4.8M
$4.7M
Industrial
$4.7M
$4.5M
Technology
$4.7M
$5M
Professional services
$4.5M
$4.7M
Transportation
$4.2M
$3.6M
Communications
$3.9M
$3.6M
Consumer
$3.8M
$3.7M
Education
$3.7M
$3.9M
Research
$3.6M
$3.9M
Entertainment
$3.6M
$3.8M
Media
$3.6M
$3.2M
Hospitality
$3.4M
$2.9M
Retail
$3M
$3.3M
Public sector
$2.6M
$2.1M
$1M
$2M
$2M
$4M
$5M
$6M
$7M
$8M
$8M
$10M
$11M
2023
2022
Rapid advances in AI raise the possibility of a new generation of cyber attacks:
2
1
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3
2
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‘Malware as a service’ has already lowered the barriers to entry for cyber crime. AI coding assistance could further accelerate this trend.
This example draws on a real case, in which a CEO was defrauded of $243,000 by criminals using AI audio software.
Source: Fraudsters use AI to mimic Ceo's voice in unusual cybercrime case (wsj.com)
AI’s potential to increase the effectiveness of phishing is highly significant, as phishing is the most common cyber attack vector.
$5.0M
$4.4M
$4.1M
$3.8M
$3.5M
4%
6%
8%
10%
12%
14%
16%
18%
System error
Known unpatched
vunerability
Accidental data loss or lost or stolen device
Malicious insider
Physical security compromise
Social
engineering
Business email
compromise
Unknown (zero-day) vulnerability
Cloud misconfiguration
Stolen or compromised credentials
Phishing
Assumptions, opinions and estimates are provided for illustrative purposes only.
Source: Cost of a Data Breach Report 2023 (ibm.com)
AI-powered content assessment
Inbox
Spam folder
•
•
•
•
•
Research shows AI can accelerate response times:
It's estimated current cyber security solutions only reach 10% of the addressable market
$1.5trn
- $2.0trn
10x
$140bn
- $150bn
Vended market
Total addressable market
Total addressable market
1
2
Data protection
Governance, risk and compliance
Email security and awareness
Cloud security
Network security
Identity and access management
Security consulting
Web security
IoT/OT
End point security
Application security
Security and operations management
MSSP /outsourcing
$50-100bn
$50-100bn
$50-100bn
$50-100bn
$50-100bn
$50-100bn
$100-200bn
$100-200bn
$100-200bn
$100-200bn
$100-200bn
$400-500bn
$400-500bn
30-35%
30-35%
10-15%
1-5%
15-20%
20-25%
15-20%
5-10%
1-5%
5-10%
1-5%
1-5%
5-10%
1
Internet of Things/operational technology.
Managed security service provider.
2
Assumptions, opinions and estimates are provided for illustrative purposes only.
Source: New survey reveals $2 trillion market opportunity for cybersecurity technology and service providers | McKinsey
$376.3
billion
2029
$139.8 billion
2021
Assumptions, opinions and estimates are provided for illustrative purposes only. Forecasts are not a reliable indicator of future performance.
Source: With 13.4% CAGR, Global Cyber Security Market Size to (globenewswire.com)
Predictive analysis
Cloud
Biometrics & ID
Data encryption
Web filtering
Email encryption
Endpoint security
Viruses & malware
The ETF offers exposure to leading cyber security companies:
Key features
Quarterly rebalancing to respond to new companies and trends
Supported by a team of cyber security experts
UCITS compliant
*It should be noted that diversification is no guarantee against a loss in a declining market.
Broad global exposure to a unique basket of cyber security companies
Diversification* across countries, sectors and market capitalisation
Potential for reduced volatility versus investing in individual cyber security stocks
The L&G Cyber Security UCITS ETF seeks to be a simple, liquid and cost-effective way to access this high-growth megatrend.
Hover to reveal amounts
$10.9M
$10.1M
$5.9M
$6M
$4.8M
$5M
$4.8M
$4.7M
$4.7M
$4.5M
$4.7M
$5M
$4.5M
$4.7M
$4.2M
$3.6M
$3.9M
$3.6M
$3.8M
$3.9M
$3.7M
$3.9M
$3.6M
$3.9M
$3.6M
$3.8M
$3.6M
$3.2M
$3.4M
$2.9M
$3M
$3.3M
$2.6M
$2.1M
$4.7M
$4.0M
$4.9M
$4.5M
$4.2M
$4.6M
$4.1M
$4.7M
$4.5M
$4.0M
$4.6M
$4.8M
Time taken to detect incidents
Time taken to respond to and recover from incidents
Dwell time
Time taken to investigate cybersecurity incidents
Top 25% of AI adopters
Median of AI Adopters
Bottom 25% of AI Adopters
110
days
160
days
215
days
Source: AI and automation for cybersecurity (ibm.com)
Such exclusions and the definition of “involvement” are determined by reference to the methodology published by Nasdaq, Inc. (the “Index Provider”) which is available here.
Market segments
Current
market
penetration
Click segments to view details
$3.6M
$3.9M
$3.9M
$3.9M
$4.2M
$4.4M
$4.5M
Assumptions, opinions and estimates are provided for illustrative purposes only.
Source: Cybercrime To Cost The World 8 Trillion Annually In 2023 (cybersecurityventures.com)
Source: Cost of a Data Breach Report 2023 (ibm.com)
Suspicious keywords
Malicious IP addresses and URLs
Harmful attachments or embedded content
Inconsistent grammar, syntax and spelling, such as using symbols and numbers as letters
Excessive use of special characters or emojis
46
days
60
days
75
days
120
days
145
days
186
days
120
hours
220
hours
403
hours
As of 31/08/2023.
1. Calculated using 5 year weekly returns.
*Year-to-date, as of 31/08/2023.
ISE Cyber Security® UCITS Net Total Return Index
MSCI World Net Total Return USD Index
USPY LN Equity
ISE Cyber Security® UCITS Net Total Return Index
Source: Cybercrime To Cost The World 8 Trillion Annually In 2023 (cybersecurityventures.com)
Assumptions, opinions and estimates are provided for illustrative purposes only.
The average cost of a data breach keeps on rising:
Healthcare data breaches remain the most costly on average
Rapid advances in AI raise the possibility of a new generation of cyber
attacks:
$1M
$2M
$3M
$4M
$5M
$6M
$7M
$8M
$9M
$10M
$11M
$3.3M
$3M
$2.9M
$3.4M
$3.2M
$3.6M
$3.8M
$3.6M
$3.9M
$3.6M
$3.9M
$3.7M
$3.9M
$3.8M
$3.6M
$3.9M
$3.6M
$4.2M
$4.7M
$4.5M
$5M
$4.7M
$4.5M
$4.7M
$4.7M
$4.8M
$5M
$4.8M
$6M
$5.9M
$10.1M
$10.9M
Source: Cost of a Data Breach Report 2023 (ibm.com)
Assumptions, opinions and estimates are provided for illustrative purposes only.
Learn more about the fund
3
Query
1
Query
2
Query
1
Query
3
Query
2
Query
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Query
3
Query
Cost and frequency of a data breach by initial attack vector:
Source: Cost of a Data Breach Report 2023 (ibm.com)
Assumptions, opinions and estimates are provided for illustrative purposes only.
$4.6M
$4.0M
$4.5M
$4.7M
$4.1M
$4.6M
$4.2M
$4.5M
$4.9M
$4.0M
Fortunately, AI is also being leveraged by the cyber security industry:
Research shows AI can accelerate response times:
Source: AI and automation for cybersecurity (ibm.com)
It's estimated current cyber security solutions only reach 10% of the addressable market
Global cyber security market growth forecast, 2021-2029:
Assumptions, opinions and estimates are provided for illustrative purposes only. Forecasts are not a reliable indicator of future performance.
Source: With 13.4% CAGR, Global Cyber Security Market Size to (globenewswire.com)
Such exclusions and the definition of “involvement” are determined by reference to the methodology published by Nasdaq, Inc. (the “Index Provider”) which is available here.
ISE Cyber Security® UCITS Net Total Return Index
MSCI World Net Total Return USD Index
As of 31/08/2023.
1. Calculated using 5 year weekly returns.
*Year-to-date, as of 31/08/2023.
Learn more about the fund
Past performance is not a guide to the future.
The ISE Cyber Security® UCITS Index is equally weighted, allowing the Index to capture growth trends in both established and emerging companies actively engaged in the cyber security industry.
Past performance is not a guide to the future.
Global cyber security market, 2021:
With a compound annual growth rate of 13.4%
How AI can help protect your inbox:
1. Lowering the barrier to entry for malware creation
Cost of a data breach by industry:
Tap bars
to reveal amounts
Global cyber security market growth forecast, 2021-2029:
Hover over dots to reveal amounts
3. AI-powered phishing emails
2. Deepfake impersonations
Cost and frequency of a data breach by initial attack vector:
Hover over dots to reveal amounts
Click to view details
Click segments or text to view details
Enter Europe’s original cyber security ETF
The value of an investment and any income taken from it is not guaranteed and can go down as well as up; you may not get back the amount you originally invested.
But for cyber criminals, every device is an attack surface.
But for cyber criminals, every device is an attack surface.
$3.6M
2017
$3.9M
2018
$3.9M
2019
$3.9M
2020
$4.2M
2021
$4.4M
2022
$4.5M
2023
Source: Cost of a Data Breach Report 2023 (ibm.com)
Assumptions, opinions and estimates are provided for illustrative purposes only.
Cost of a data breach by industry:
Tap dots
to reveal amounts
How AI can help protect your inbox:
Tap to view details
Global cyber security market, 2021:
With a compound annual growth rate of 13.4%
The L&G Cyber Security UCITS ETF seeks to be a simple, liquid and cost-effective way to access this high-growth megatrend.
The value of an investment and any income taken from it is not guaranteed and can go down as well as up; you may not get back the amount you originally invested.
1. Lowering the barrier to entry for malware creation
2. Deepfake impersonations
3. AI-powered phishing emails
Tap numbers
to reveal querys
$3.6M
2017
$3.9M
2018
$3.9M
2019
$3.9M
2020
$4.2M
2021
$4.4M
2022
$4.5M
2023
$3.6M
2017
$3.9M
2018
$3.9M
2019
$3.9M
2020
$4.2M
2021
$4.4M
2022
$4.5M
2023
Source: Bloomberg; all in USD; as at 31 August 2023. Performance is shown net of fees and charges.
Source: Bloomberg; all in USD; as at 31 August 2023. Performance is shown net of fees and charges.