3 ETFs to invest in cloud computing – Marketscreener.com

If you want to know more about the cloud computing market and its major players, I suggest you take a look at Tommy Douziech's excellent article where he details how the cloud works, the market and the future prospects of this technology, all accompanied by a complete thematic list of cloud players.

In short, cloud computing is a tool that allows you to benefit from an IT infrastructure, a development platform or even a ready-to-use service, all online, without the need for hardware at home or in your company. It runs on servers managed by the provider, who takes care of the security and maintenance of the hardware.

The cloud allows companies and users to operate infrastructure and services online, without additional hardware costs with a simple annual or monthly subscription. It is like renting a PC that is not in your office but on a server whose location is kept secret.

First Trust Cloud Computing ETF (SKYY):This ETF is provided by the Illinois based investment management company First Trust. With more than $5 bn in total net asset, SKYY is the largest cloud fund. It employs a modified equal weighted index limited to 80 companies, aiming to optimize the performance of the ISE CTA Cloud Computing Index. Companies listed in the index must respect these three criteria :

Since its inception in May 2011, the NAV average annualized total return is +17.39% (S&P500 average annualized total return over the period is +15.16%) and +10.55% over one year. The expense ratio is 0.60%.

Here are the top holdings as of 02/07/2022:

Global X Cloud Computing ETF (CLOU):CLOU is the second largest cloud computing ETF with $1.2 bn in assets under management. Provided by the well known New-York based ETF producer Global X, it is based on the Indxx Global Computing Index, which offers exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology. Since its launch in April 2019, the NAV average annualized total return is +23.97% and -3.26% over one year. The ETF is composed of 35 companies and total expense ratio is 0.68%.

Here are the top 10 holdings :

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3 ETFs to invest in cloud computing - Marketscreener.com