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Cloud Computing ETFs Looking Great: Let's Explore

Cloud computing and storage are expected to stay in vogue in 2021. The space has received quite a push amid the coronavirus outbreak with a vast population working from home across the globe. Considering the accelerated coronavirus vaccine rollout globally, demand for cloud computing is set to stay robust even after the pandemic.

It is worth knowing here that cloud computing and storage have found applications in social networking, messaging apps and streaming services. It has empowered video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. Cloud computing is also supporting organizations in remotely processing a lot of information, developing and running key applications and services.

The world’s largest economy is again seeing a spike in new COVID-19 cases. This uncertainty surrounding the coronavirus outbreak has led to ambiguity regarding the duration of the work-from-home orders imposed by corporations. Notably, Global Workplace Analytics has predicted in a report that by the end of 2021, 25-30% of the workforce will work from home for multiple days a week.

As the U.S. economy was reopening, an increasing number of American shoppers were seen to be visiting stores for some retail therapy. However, with the surging Delta variant cases, shoppers are expected to go back to online shopping.

Certain other ‘new normal’ trends have emerged amid the health crisis like increasing digital payments, growing video streaming as well as soaring video game sales. The pandemic is also a boon for the e-commerce industry as people continue staying indoors and shopping online for all essentials, especially food items.

Notably, cloud technology adoption is expected to experience strong growth in sectors where the work-from-home initiatives are supporting business functions. The global cloud computing market size is projected to rise from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5%, per a ResearchAndMarkets.com report. Integration of cloud computing with AI, big data and IoT will help businesses touch new levels of success in innovation.

The shift to digitization is set to remain robust even after the pandemic, keeping companies dependent on cloud-based services to drive that change. Strengthening the demand, the work-form-home trend is expected to remain that might evolve into a hybrid model post-pandemic.

Cloud Computing ETFs to Keep Soaring

Here we highlight some ETFs that can gain from the growing demand for cloud computing:

First Trust Cloud Computing ETF SKYY

The fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the ISE CTA Cloud Computing Index. It tracks the performance of companies actively involved in the cloud computing industry. The fund holds about 65 securities in its basket. It has AUM of $6.46 billion and an expense ratio of 0.60% (read: ETF Strategies to Profit From a Historically Weak September).

Global X Cloud Computing ETF CLOU

The fund seeks to invest in companies positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business involves offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data-center real estate investment trusts, and/or cloud and edge computing infrastructure and hardware. The fund holds about 34 securities in its basket. It has AUM of $1.37 billion and an expense ratio of 0.68% (read: Thematic ETF Investing: What You Should Know).

WisdomTree Cloud Computing ETF WCLD

The fund seeks to track the price and yield performance, before fees and expenses, of the BVP Nasdaq Emerging Cloud Index, an equally weighted Index designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers. The fund has AUM of $1.35 billion and an expense ratio of 0.45% (read: 5 Top-Ranked ETFs to Buy on the Dip).

Wedbush ETFMG Global Cloud Technology ETF IVES 

The fund is designed to provide access to the cloud infrastructure and cloud “enabler” companies, expected to drive the next 10 years of an estimated $1 trillion in cloud spending. It seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Dan Ives Global Cloud Technology Prime Index. The fund holds about 70 securities in its basket. It has AUM of $60.2 million and an expense ratio of 0.68%.


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First Trust Cloud Computing ETF (SKYY): ETF Research Reports
 
Global X Cloud Computing ETF (CLOU): ETF Research Reports
 
WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
 
Wedbush ETFMG Global Cloud Technology ETF (IVES): ETF Research Reports
 
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