An ETF I am only going to buy more of.

When ETFs are mentioned, discussions essentially revolve around those tracking the S&P 500, the MSCI World index, the NASDAQ, or a precious metal tracker - usually gold. These are all great, and should certainly be a part of one's portfolio. I love the concept of ETFs because they allow for thematic investing - getting exposure to industries, or countries, one might understand the case for, but don't necessarily understand the countless companies associated with that industry or country. It is my view, however, that a lot of the ETFs on the market might be really bad options. An index is really just a list of companies; anyone can create one, thus ETFs' quality will vary. Finding good ETFs beyond the aforementioned reliable ones can be a hard task.

So when I find such an ETF, I want to, and will, keep buying more of it. An example of this has to be Legal and General's Cyber Security ETF; one of my best performers and, as the name suggests, a convenient way to gain exposure to a critical industry for the 2020s and beyond. Since its inception, just over nine years ago, this ETF has risen in value by 290% and in the last two years has increased by 60%. By comparison, over the same timeframe, the S&P500 has increased in value by 50%. The best part is there's plenty to suggest that the Cyber Security ETF's winning streak will endure for a long time.

The ETF's holdings include names you may be familiar with - Palo Alto Networks, CrowdStrike, Fortinet - and many of the names are synonymous with security, like Cisco or Blackberry. Admittedly it is heavily US-focused, more so since London-listed Darktrace had to come off of the ETF after it delisted upon changing to a private company. This particular change was a shame, however, I am not particularly worried about this ETF's US focus. While nearly 80% of the ETF's holdings are US companies, there is some OK exposure to Japan (7%), Canada (7%), and the Middle East (5%), and its holdings are broadly growth stocks. For a sub-sector that will grow at the same pace as, if not faster than, AI and tech more generally, a larger proportion of growth stocks is very welcome.

Which is another reason why I like this ETF - it gives me good exposure to 'tech' while allowing me to invest in a facet that I am more confident in. I might not have a definitive answer as to what the next technological innovation is going to be, however, I know for sure that ensuring it is protected against unauthorised access, attacks, and damage is non-negotiable and will be a priority. Further, as the sophistication of hacks and cyber attacks increases, especially with advancements in AI and rise of state-sponsored cyber attacks, the need for investment in cyber security frameworks will only continue to rise. Cyber security is therefore just as important as the tech it seeks to protect. It will not become irrelevant or fall victim to being a fad, and it has applications across the private sector, public sector, government, and military.

No wonder, then, that the cyber security industry between 2025 and 2029 is expected to grow at an average rate of 7.58% per year. Especially as the world begins to feel the pinch of higher interest rates and consumer confidence is still shakey, cyber security could be both a good defensive option and an option for the pursuit of companies with huge growth potential. Each time this ETF exhibits a setback or correction, I'll be watching with an eye to buying more.