Investors often hear about hot new trends that are supposed to disappear, but history shows that not all “disruptive” technologies are destined to be money-makers.
One of the fastest growing areas of technology, however, has proven itself in recent years, including cloud computing stocks, which have revolutionized data interaction.
In the past, you had to have enough memory on your phone to store pictures and songs, or in the office, enough server space – all your company email. To save emails and files. Not only that, but keeping the data in the cloud allows that information to be accessed instantly from anywhere with much less initial investment.
This local technological trend continues to evaporate in 2021.
- First Trust Cloud Computing ETF (marker: SKYY)
- Global X Cloud Computing ETF (CLOU)
- WisdomTree Cloud Computing Fund (WCLD)
- First Trust Dow Jones Internet Index Fund (FDN)
- ARK Next Generation Internet ETF (ARKW)
First Trust Cloud Computing ETF (SKYY)
With nearly $ 6 billion in assets under management, First Trust Cloud Computing ETF is the leading cloud fund.
It consists of about 60 total holdings, the first of which includes prominent Big Tech players such as Google’s parent alphabet (GOOGL), as well as smaller stocks you may not have heard of, such as Kingsoft Cloud Holdings (KC). ), about $ 11 billion Chinese cloud. accounting company. However, about 90% of the assets are in the United States, so international elections are only a small part of this cloud computing ETF.
Shares of SKYY rose almost 60% last year, significantly exceeding the S&P 500 by about 16% over the same period.
Global X Cloud Computing ETF (CLOU)
Another top cloud ETF, CLOU, is managed for over $ 1 billion.
It has a much more centralized list of holdings, however, and currently holds more than 40 common positions. The portfolio is relatively evenly distributed on this shorter list, with no position currently holding more than 5% of the fund’s total. Leading offerings currently include cloud-based text messaging provider Twilio (TWLO) and cloud-based cybersecurity company Zscaler (ZS).
Shares of this cloud computing ETF have fallen slightly since the February high, but have risen more than 70% in the last 12 months.
WisdomTree Cloud Computing Fund (WCLD)
Another $ 1 billion cloud computing ETF is this offer from WisdomTree.
It is also the cheapest of the fixed assets, with an annual cost ratio of 0.45% or $ 45 for each $ 10,000 invested. This is compared to 0.6% or more of previous funds.
The list is also one of the most diverse – more than 50 properties, but no position occupies more than 2% of the portfolio, շնորհիվ due to the “equal weight” approach, the fund regularly balances its attempts to acquire each share. even with each other. Top holdings include file hosting service Dropbox (DBX) և payroll և human resources technology provider Paycom (PAYC).
First Trust Dow Jones Internet Index Fund (FDN)
Of course, it is worth noting that these days, almost any digital player can be considered a cloud computing company.
The most well-known example of this is Salesforce.com (CRM), which more than a decade ago began offering “software as a service” through subscription-based licensed software that is centralized.
When you think about the many applications used in your personal or business life, this model will be used in 2021. As a result, FDN is populated by a number of companies that can be considered cloud-based shares of Amazon.com (AMZN). ) a striking example thanks to its fast-growing Amazon Web Services section. Small positions in companies such as Cloudera (CLDR) և Fastly (FSLY) should also satisfy investors who want to be exposed to cleaner cloud-based platforms և service providers.
Overall, FDN may not be as clean-cut as some of the other items on this list, but it is certainly a significant cloud computing ETF with $ 10 billion in ownership, և cost ratio of 0.52%.
ARK Next Generation Internet ETF (ARKW)
Of course, investors may be less interested in existing Internet giants that just happened to fall into the cloud computing revolution.
Instead, if you want to look beyond the next generation of leaders from Google և Amazon, ARKW offers a powerful game of both the cloud computing revolution and other emerging technology trends, such as cyber security ոկ blockchain.
In part, the foundation’s ownership is “concentrated; it is expected to benefit from moving the foundations of the technological infrastructure to the cloud.” Obviously, not all innovators are major cloud stocks, however, so you should be fine if you include companies like Telemoc Health (TDOC) Square mobile payment giant Square (SQ).
However, if you are interested in cloud computing because of its high tech potential, it can be a plus, not a minus. It should be noted that ARKW also has a slightly higher cost ratio of 0.79%.