Global X CLOU ETF Just Keeps on Climbing to the Clouds – ETF Trends

TheGlobal X Cloud Computing ETF (CLOU) is already up over 80% year-to-date and it can only keep climbing to the clouds. The funds trailing returns show the fund has risen 24% in within a 3-month span and almost 16% in a 1-month span.

The fund seeks to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services. CLOUD gives ETF investors:

The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.

Looking at CLOUs 6-month chart, the fund has already soared above its 50-day moving average this month with its relative strength index (RSI) in overbought territory.

CLOU data by YCharts

In its 3-month chart below, we can see volume spike near the end of November and just recently as coronavirus cases surge from a second wave. Cloud computing was already seeing strength, but it was only propelled further by the pandemic amid social distancing measures.

CLOU data by YCharts

In its 1-month chart below, buyers looking for a possible entry point in an area of value could be price action that dips close to its 50-day moving average. Some possible year-end profit taking could take place, which could present a buying opportunity for investors looking to get in at a value-oriented price.

CLOU data by YCharts

CLOUs expense ratio comes in at 0.68%, but with a 80% YTD gain, it more than makes up for its cost. ETF investors can get access to an industry that is already $4 billion and will reach $6.7 billion by 2022, according to a Stockhead article.

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Global X CLOU ETF Just Keeps on Climbing to the Clouds - ETF Trends