Launched on 05/27/2011, the First Trust Cloud Computing ETF (SKYY) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Cloud Computing segment of the equity market.Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.Index DetailsThe fund is sponsored by First Trust Advisors. It has amassed assets over $4.73 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. SKYY seeks to match the performance of the ISE Cloud Computing Index before fees and expenses.The ISE Cloud Computing Index is a modified market capitalization weighted index designed to track the performance of companies actively involved in the cloud computing industry.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.03%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector--about 84% of the portfolio. Telecom and Consumer Discretionary round out the top three.Looking at individual holdings, Vmware, Inc. (VMW) accounts for about 4.30% of total assets, followed by Arista Networks, Inc. (ANET) and Alphabet Inc. (class A) (GOOGL).The top 10 holdings account for about 37.80% of total assets under management.Performance and RiskThe ETF has lost about -23.45% so far this year and is down about -19.38% in the last one year (as of 03/16/2022). In that past 52-week period, it has traded between $77.19 and $119.56.The ETF has a beta of 1.02 and standard deviation of 28.09% for the trailing three-year period, making it a medium risk choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust Cloud Computing ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SKYY is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.WisdomTree Cloud Computing ETF (WCLD) tracks BVP NASDAQ EMERGING CLOUD INDEX and the Global X Cloud Computing ETF (CLOU) tracks INDXX GLOBAL CLOUD COMPUTING INDEX. WisdomTree Cloud Computing ETF has $722.03 million in assets, Global X Cloud Computing ETF has $794.49 million. WCLD has an expense ratio of 0.45% and CLOU charges 0.68%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Cloud Computing ETF (SKYY): ETF Research Reports VMware, Inc. (VMW): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Global X Cloud Computing ETF (CLOU): ETF Research Reports WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports To read this article on Zacks.com click here.