Bringing you live news and features since 2006 

Solactive releases new index family tracking companies with highest BitSight cybersecurity ratings

RELATED TOPICS​

With its new BitSight Cyber Risk Indices, German index provider Solactive has reinterpreted the Governance factor of ESG by including in one index family only those companies that exhibit comparably good cyber risk management systems and strategies. Backtests reveal a sizeable outperformance of the Solactive BitSight Cyber Risk Indices compared to its benchmarks, potentially adding some G-Force into investors’ portfolios.

The protection against cyber risks is essential for every organisation that relies on information technology, and investors are increasingly concerned about cyber risks to their investments. The resilience towards cybersecurity risks is, by far, not standardised throughout the industry and bears large gaps between companies in all sectors. Yet, not all companies keep abreast, which goes to the disadvantage of investors as research shows an average share-prices fall of 7.27 per cent in a two-week period after a company disclosed a data breach to the public. Consequently, superior cybersecurity management is a necessary foundation to assure an invulnerable production and service offering and, potentially, according to BitSight, serves as an additional sustainability-factor alongside the current ESG nomenclature.

To identify the constituents for the Solactive BitSight Cyber Risk Indices, Solactive allied with BitSight, the market’s leading provider of objective Security Ratings. BitSight’s approach extends beyond the analysis of ordinary companies’ self-disclosure of their cybersecurity defence by continuously collecting externally observable security performance information and applying sophisticated algorithms to build a cohesive and reliable cybersecurity risk profile. For the Solactive BitSight Cyber Risk Indices, only the top 25 per cent of companies according to BitSight’s ranking per sector, as defined by FactSet, will be included in the indices.

Stephen Harvey, Chief Executive Officer at BitSight, says: “BitSight is powering a new era, where cyber risk is integrated into every market decision and strong, measurable cybersecurity performance is a market differentiator. This unprecedented research will not only affect investors’ views on cybersecurity, but also the way that C-suite and security professionals manage and measure cybersecurity performance inside of their organisations. For BitSight, this is another independent, statistical validation of our market-leading Security Ratings, further cementing the reason why the global marketplace – investors, insurers, governments, and businesses – trust and use the BitSight platform.”

The Solactive BitSight Cyber Risk Index family helps investors factor cyber risk into their investment decision- making, serving as a leading benchmark for only the best cyber-secure companies. The indices can serve as the underlying for index-linked products such as ETFs or structured products.

“Solactive’s approach has always been, and will always be, to identify quality data sources that enable us to provide our clients with a superior indexing strategy and experience. With BitSight, we found a data provider sharing with us the same approach towards the predominance of big data,” says Timo Pfeiffer, Chief Markets Officer at Solactive. “The importance of effective cybersecurity management is a crucial factor in a company’s long-term success as it is an unquestionable minimum requirement in today’s interconnected economy. We’re very proud to release an index family with BitSight that reflects the utter importance for this still understated sustainability aspect.”

The first Solactive BitSight Cyber Risk Indices went live on the 6 October.

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by