Public surveillance has been a hot button topic in China as technology like facial recognition becomes more and more advanced. For ETF investors, it gives them an opportunity to take a closer look at cybersecurity-focused funds that could offer future gains as the technology advances. “Privacy is one of the major, very sensitive issues nowadays given that the data is increasing very rapidly,” Candy Wu, vice president of Guangzhou, China-based CloudWalk, said during a panel at CNBC’s East Tech West event.

Two ETFs are dedicated to the cybersecurity market, which continues to grow globally. One of these ETFs may be better for long-term investors.

Cybersecurity and cloud-computing ETFs have been riding higher on U.S.-Iran conflict.

Semiconductor company Broadcom could head into 2020 with a value-oriented play that could give bargain bin-hunting ETF investors an opportunity to consider—leveraged and unleveraged. With companies like Apple and Samsung utilizing Broadcom chips, the company is poised for growth that goes beyond its current value. “In the fiscal third quarter of 2019 (ended in August), Broadcom's networking vertical performed well due to strong demand from the switching and routing platforms,” Aditya Raghunath wrote in Motley Fool.

It takes more than a fancy suit and a plethora of mechanical devices at one’s disposal to be an international spy these days. In the current landscape, it’s disruptive technology like artificial intelligence that is paving the way for future innovations in the intelligence community. While AI can do a majority of the tedious tasks, it’s still important for the intelligence community to have an understanding of the technology that does the actual work.

The surging tech ETFs are pricier and many are hovering around their all-time high. This makes it important to look at some low-priced tech ETFs that hold solid potential too.

This is the situation which many Capital One customers currently fear, as in one of the biggest data breaches ever,   a hacker gained access to more than 100 million Capital One customers' accounts and credit card applications. The hacker is accused of breaking   into a Capital One server and gaining access to 140,000 Social Security numbers, 1 million Canadian Social Insurance numbers and 80,000 bank account numbers, in addition to an classified quantity of people's names, addresses, credit scores, credit limits, balances, and other information, according to the bank and the US Department of Justice. The company said Monday night it discovered the breach on July 19, Capital One Financial shares fell 6.1% Tuesday, a day after the disclosure of a data breach that impacted about 100 million individuals in the U.S.

Cisco Systems dampened investors' mood when it reported first-quarter fiscal 2020 results as it sparked fears of a slowdown in global tech spending with a bleak outlook.

Another day, another hack … another reason to buy cybersecurity stocks.Source: Shutterstock I've been saying that for a few years now, and over the past three years, cybersecurity stocks have indeed roared higher. The First Trust Cybersecurity ETF (NASDAQ:CIBR) is up over 65% over the past three years. The S&P 500 is up just 38% over that same stretch.Why the huge out-performance in cybersecurity stocks? Because -- drawing back to the opening statement -- data hacks have simply kept happening … all the time … everywhere.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn 2016, personal and financial information on hundreds of millions of accounts were compromised thanks to data breaches at Adult Friend Finder, Yahoo and Uber (NYSE:UBER). In 2017, it was Equifax (NYSE:EFX) and Verizon (NASDAQ:VZ) that were hit hard by data breaches which similarly exposed information on hundreds of millions of accounts. Marriott (NASDAQ:MAR), Twitter (NYSE:TWTR), Under Armour (NYSE:UAA) and Chegg (NASDAQ:CHGG) were big hack victims in 2018. In 2019, the headline hack so far has been the Capital One (NYSE:COF) data breach, which exposed info on more than 100 million Capital One customers.As these hacks have kept happening, enterprises have increasingly doubled down on cybersecurity solutions, spending an arm and a leg on cybersecurity to make sure they protect customer info and data, which, for what it's worth, is an increasingly valuable asset in today's data economy.As such, the saying still rings true today. Another day, another hack, another reason to buy cybersecurity stocks. So long as this saying remains true, cybersecurity companies will stay in rally mode. * 10 Stocks to Buy on the Trade War Dip With that in mind, let's take a look at four cybersecurity stocks to buy to play this secular growth trend. Palo Alto Networks (PANW)Source: Shutterstock At the top of this list of cybersecurity stocks to buy, we have global cybersecurity leader, Palo Alto Networks (NASDAQ:PANW).The saying "another day, another hack, another reason to buy cybersecurity stocks" could easily be substituted for the saying "another day, another hack, another reason to buy PANW stock".Palo Alto Networks is that big, that dominant, and that good.This company has been the leader of the cybersecurity industry for a long time. It has a long track record of 20%-plus revenue growth, and actually grew revenues at a 40% compounded annual growth rate between 2014 and 2018. It has an equally long and robust track record of customer growth, going from 4,000 customers at the end of 2011, to 54,000 customers by the end of 2018.At the same time, the business model is highly attractive. It's a software business, so gross margins are sky high. Above 75% to be exact. The opex rate has dropped consistently with scale, and operating margins have climbed from 11% in 2014, to above 20% last year. Further, the business generates a lot of cash because capex is so low, with 40%-plus free cash flow margins.Going forward, Palo Alto Network reasonably projects as a 15%-plus revenue grower with favorable margin drivers. That should drive somewhere between 20% and 25% profit growth over the next few years, which puts 2025 earnings-per-share somewhere around $16. Based on a software average multiple of 25-times forward earnings, that implies a long-term price target for PANW stock of $400, substantially higher than today's price tag.All in all, then, PANW stock looks like a solid long-term investment at current levels. Okta (OKTA)Next up, we have hyper-growth cybersecurity company Okta (NASDAQ:OKTA), whose unique approach to the cybersecurity problem has gained tremendous traction over the past few years.Okta has developed what it calls the Identity Cloud, which is essentially just a cloud-based cybersecurity solution that puts individual identity at the core of the solution. In so doing, Okta's solutions enable individuals in enterprises to seamlessly and securely adopt any new software, since the security is based on the individual identity, which doesn't change from app to app.This unique approach to cybersecurity has gained tremendous traction recently. Okta has consequently posted 50%-plus revenue growth rates in each of the past several quarters, alongside 30%-plus customer growth. Much like Palo Alto Networks, Okta also employs a highly attractive software business model which runs at 70%-plus gross margins. Revenue scale has also sparked continued and significant operating leverage.All in all, Okta has all the right ingredients for huge profit growth over the next few years as sustained big revenue growth drives significant operating leverage on top of huge gross margins, creating a visible pathway toward big operating margins on big revenues one day.From this perspective, I think this company could easily be a $5 billion-plus revenue business one day, with operating margins of 30% or higher. That combination could realistically output around $10 in EPS. Based on a 25 forward multiple, that equates to a long-term price target of $250. * 7 Stocks the Insiders Are Buying on Sale To be sure, it will take a while for Okta to get there. But, the long-term upside here is nonetheless compelling. Proofpoint (PFPT)Another cybersecurity name to buy for the long haul is Proofpoint (NASDAQ:PFPT).The narrative at Proofpoint is very healthy. Proofpoint is the leader in email security. Email is the No. 1 channel through which personal hacks happen. Yet, email security spend accounts for a very small piece of the total IT security spend. This disconnect implies secular growth potential in email security spend. Most of that spend will find its way into Proofpoint. As such, Proofpoint projects as a big revenue growth company for as long as cyber and email security tailwinds remain vigorous.The numbers here corroborate the healthy growth narrative. Proofpoint has grown SaaS revenues at a 35% compounded annual growth rate from 2012 to 2019 (projected). At the time of the company's IPO in 2012, Proofpoint had just 2,400 customers, only 2% of whom subscribed to three or more products. Today, the company has 6,100 customers (nearly triple), about half of whom subscribe to three or more products. Thus, Proofpoint has shown an impressive ability to both expand its market and cross-sell its current customers.On top of all this, Proofpoint -- like many of its cybersecurity peers -- operates at sky high 75%-plus gross margins, and has a rapidly retreating opex rate that is falling steadily with increasing scale.These dynamics will persist given secular tailwinds. As such, you're looking at a ~20% revenue growth company over the next several years, with considerable margin drivers. That should produce around 25-30% profit growth, which means EPS could get to around $7 by 2025. Based on a software average 25-times forward multiple, that equates to a 2024 price target of $175, which represents substantial upside from toady's levels. Splunk (SPLK)Source: Web Summit Via FlickrLast, but not least, on this list of cybersecurity stocks to buy is Splunk (NASDAQ:SPLK).Unlike the other companies on this list, Splunk is not inherently a cybersecurity company. Splunk is a data company first. Specifically, Splunk specializes in taking machine data, and turning that data into actionable insights for enterprises. This is a huge and growing business. Data is only becoming more abundant, more important, and more useful. Splunk is enabling companies to glean the most out of all this data, and in so doing, is providing a very necessary and valuable service in today's data economy.The volume of data globally will only continue to grow over the next several years. The usefulness of that data will also only continue to grow. As such, companies will continue to spend big on services like Splunk to produce valuable insights from that data.On the cybersecurity front, Splunk is relatively new to the cybersecurity game. But, the plunge into the market makes sense. Splunk has all this data, which it can easily leverage to produce data-driven cybersecurity solutions. That's exactly what it is doing. And with great success. Splunk continues to add several customers to its security business, with the most recent notable add being Slack (NYSE:WORK).Given its multi-faceted secular growth tailwinds, Splunk has been a 25%-plus revenue growth company for the past several years. Those same tailwinds will remain in play for the foreseeable future. As such, this company reasonably projects as a 20% sales grower over the next few years. Gross margins are high (above 80%), and operating margins will continue to move meaningfully higher as big revenue growth persists. * 10 Cyclical Stocks to Buy (or Sell) Now Net net, Splunk projects as 25-30% profit grower over the next few years. That profit growth trajectory makes $8 in EPS seem doable by 2025. Based on a 25-forward multiple, that implies a 2024 price target of $200.As of this writing, Luke Lango was long UBER, CHGG, PANW, OKTA and SPLK. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post 4 Cybersecurity Stocks to Buy for Long-Term Gains appeared first on InvestorPlace.

The Cisco's Acacia buyout deal has put the spotlight on a number of ETFs which could be the best ways for investors to tap the opportunity.

The global damage cost arising from cybercrime is expected to double to $6 trillion between 2015 and 2021, per Cybersecurity Ventures.

Cybersecurity stocks and the related exchange-traded funds (ETFs) are on torrid paces this year. The ETFMG Prime Cyber Security ETF (NYSEARCA:HACK), the oldest cybersecurity ETF on the market, is up nearly 24% and a confluence of factors bode well for continued upside among stocks residing in this corner of the technology sector.Earlier this month, cybersecurity stocks and ETFs like HACK surged on news that semiconductor giant Broadcom (NASDAQ:AVGO) is continuing its quest to diversify its product mix away from chips by acquiring cybersecurity purveyor Symantec (NASDAQ:SYMC).While many investors may prefer traditional, diversified technology ETFs to cybersecurity fare, there are sound fundamental reasons to consider cybersecurity ETFs for the long haul. After all, cybersecurity ETFs provide exposure to one of the truly riveting exponential growth trends on the market today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"In 2004, the global cybersecurity market was worth $3.5 billion -- and in 2017 it was expected to be worth more than $120 billion. The cybersecurity market grew by roughly 35X over 13 years entering our most recent prediction cycle," according to CyberSecurity Ventures. "Worldwide spending on information security (a subset of the broader cybersecurity market) products and services exceeded $114 billion in 2018, an increase of 12.4 percent from 2017, according to Gartner, Inc. For 2019, they forecast the market to grow to $124 billion, and $170.4 billion in 2022." * 10 Best Cryptocurrencies to Keep on Your Radar In addition to HACK, here are some other cybersecurity ETFs to consider. iShares Cybersecurity and Tech ETF (IHAK)Expense Ratio: 0.47%, or $47 annually per $10,000 investedThe iShares Cybersecurity and Tech ETF (NYSEARCA:IHAK) is just over a month old, making it the newest cybersecurity ETF, but it has a feather in its cap: it is also one of the cheapest cybersecurity ETFs on the market. This rookie fund tracks the NYSE FactSet Global Cyber Security Index and holds almost 40 stocks with Symantec being its largest holding.While IHAK is a new cybersecurity ETF, it is one with potential for patient investors and one that may just be at the right place at the right time."The unprecedented cybercriminal activity we are witnessing is generating so much cyber spending, it's become nearly impossible for analysts to accurately track," notes Cybersecurity Ventures. "We anticipate 12-15 percent year-over-year cybersecurity market growth through 2021, compared to the 8-10 percent projected by several industry analysts."At the industry level, IHACK features exposure to providers of cybersecurity hardware, software, products and services. BlueStar Israel Technology ETF (ITEQ)Expense Ratio: 0.75%The BlueStar Israel Technology ETF (NYSEARCA:ITEQ) has gained some acclaim for being an excellent way of bringing international diversity to technology investing. While ITEQ is positioned as a diversified technology fund, it is also very much a cybersecurity ETF because Israel is one of the world's leaders when it comes to cybersecurity services and software."Investments in cybersecurity firms in Israel crossed the $1 billion mark for the first time in 2018 as interest by foreign investors surged, a January report by Start-Up Nation Central, which tracks Israel's tech industry, showed," reports The Times of Israel. "Israel's cyber industry is second only to that of the US, taking 20 percent of the overall venture-backed cyber investments worldwide, according to an analysis of PitchBook and Start-Up Nation Central databases." * 7 Best of the Best Fidelity Funds to Buy ITEQ's technology focus is a difference maker. The quasi-cybersecurity ETF is up nearly 28% year-to-date, nearly double the returns of the MSCI Israel Index. First Trust Nasdaq Cybersecurity ETF (CIBR)Expense Ratio: 0.60%The First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR) was the second cybersecurity ETF on the scene, and, today, the fund has nearly $1 billion in assets under management. CIBR, which turned four years old earlier this month, follows the Nasdaq CTA Cybersecurity Index. CIBR holds 44 stocks with a median market value of $3.26 billion, indicating the fund tilts toward smaller mid-cap fare.That said, this cybersecurity ETF is home to some large-cap technology names, including Cisco Systems (NASDAQ:CSCO) and Palo Alto Networks (NASDAQ:PANW). Five industry groups are represented in CIBR, but the fund devotes over 56% of its weight to software makers. That is a good thing due to the rapid growth expected in the cybersecurity software market.Additionally, many cybersecurity software makers are linked to cloud computing, another fast-growing tech segment. Due to the intersection of cloud computing and cybersecurity software, many of the companies operating in this sphere are appealing acquisition targets for larger, cash-rich technology companies. With software powering cybersecurity growth, CIBR remains a practical, long-term option among cybersecurity ETFs.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Cybersecurity ETFs With Loads of Growth Potential appeared first on InvestorPlace.

As technology continues to advance, it gives cybercriminals more tools to defraud consumers and in turn, companies are fighting back with artificial intelligence (AI). “In response, many financial sector companies are adopting AI to combat both staff and customer fraud,” wrote Jeff Palmer in IT Pro Portal. “Among the variety of applications of AI in the financial sector is speech recognition, which offers numerous possibilities, including voice-based account servicing, robo-advice, autonomous analysis of audio archives and live ‘sentiment analysis’ of customer calls as well as the real-time transcription of any audio feed to allow instant decisions to be made,” Palmer added.