Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the First Trust Cloud Computing ETF (SKYY) is a passively managed exchange traded fund launched on 05/27/2011.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 9, placing it in bottom 44%.Index DetailsThe fund is sponsored by First Trust Advisors. It has amassed assets over $2.91 billion, making it one of the larger 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.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.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 1.31%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, 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 85.60% of the portfolio. Telecom and Consumer Discretionary round out the top three.Looking at individual holdings, Mongodb, Inc. (MDB) accounts for about 4% of total assets, followed by Pure Storage, Inc. (class A) (PSTG) and Arista Networks, Inc. (ANET).The top 10 holdings account for about 34.21% of total assets under management.Performance and RiskYear-to-date, the First Trust Cloud Computing ETF has lost about -40.13% so far, and is down about -42.68% over the last 12 months (as of 11/24/2022). SKYY has traded between $55.97 and $111.27 in this past 52-week period.The ETF has a beta of 1.05 and standard deviation of 34.69% for the trailing three-year period, making it a medium risk choice in the space. With about 71 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust Cloud Computing ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SKYY is an excellent 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.Global X Cloud Computing ETF (CLOU) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the WisdomTree Cloud Computing ETF (WCLD) tracks BVP NASDAQ EMERGING CLOUD INDEX. Global X Cloud Computing ETF has $570.93 million in assets, WisdomTree Cloud Computing ETF has $594.64 million. CLOU has an expense ratio of 0.68% and WCLD charges 0.45%.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 Arista Networks, Inc. (ANET): Free Stock Analysis Report Pure Storage, Inc. (PSTG): Free Stock Analysis Report MongoDB, Inc. (MDB): Free Stock Analysis Report Global X Cloud Computing ETF (CLOU): ETF Research Reports WisdomTree Cloud Computing ETF (WCLD): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research