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Should You Invest in the Global X Cloud Computing ETF (CLOU)?
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If you're interested in broad exposure to the Technology - Cloud Computing segment of the equity market, look no further than the Global X Cloud Computing ETF (CLOU - Free Report) , a passively managed exchange traded fund launched on 04/12/2019.
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.
Additionally, sector ETFs offer convenient 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 6, placing it in top 38%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $588.67 million, making it one of the larger ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. CLOU seeks to match the performance of the INDXX GLOBAL CLOUD COMPUTING INDEX before fees and expenses.
The Indxx Global Cloud Computing Index provides exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology.
Costs
Since 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 0.68%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.88%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Netflix Inc (NFLX - Free Report) accounts for about 5.48% of total assets, followed by Paycom Software Inc (PAYC - Free Report) and Digitalocean Holdings Inc (DOCN - Free Report) .
The top 10 holdings account for about 47.86% of total assets under management.
Performance and Risk
So far this year, CLOU has lost about -38.74%, and is down about -47.50% in the last one year (as of 10/24/2022). During this past 52-week period, the fund has traded between $14.88 and $32.14.
The ETF has a beta of 0.99 and standard deviation of 34.45% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.
Alternatives
Global X 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, CLOU is an outstanding 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 - Free Report) tracks BVP NASDAQ EMERGING CLOUD INDEX and the First Trust Cloud Computing ETF (SKYY - Free Report) tracks ISE Cloud Computing Index. WisdomTree Cloud Computing ETF has $598.86 million in assets, First Trust Cloud Computing ETF has $2.98 billion. WCLD has an expense ratio of 0.45% and SKYY charges 0.60%.
Bottom Line
To 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.
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Should You Invest in the Global X Cloud Computing ETF (CLOU)?
If you're interested in broad exposure to the Technology - Cloud Computing segment of the equity market, look no further than the Global X Cloud Computing ETF (CLOU - Free Report) , a passively managed exchange traded fund launched on 04/12/2019.
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.
Additionally, sector ETFs offer convenient 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 6, placing it in top 38%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $588.67 million, making it one of the larger ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. CLOU seeks to match the performance of the INDXX GLOBAL CLOUD COMPUTING INDEX before fees and expenses.
The Indxx Global Cloud Computing Index provides exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology.
Costs
Since 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 0.68%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.88%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Netflix Inc (NFLX - Free Report) accounts for about 5.48% of total assets, followed by Paycom Software Inc (PAYC - Free Report) and Digitalocean Holdings Inc (DOCN - Free Report) .
The top 10 holdings account for about 47.86% of total assets under management.
Performance and Risk
So far this year, CLOU has lost about -38.74%, and is down about -47.50% in the last one year (as of 10/24/2022). During this past 52-week period, the fund has traded between $14.88 and $32.14.
The ETF has a beta of 0.99 and standard deviation of 34.45% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.
Alternatives
Global X 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, CLOU is an outstanding 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 - Free Report) tracks BVP NASDAQ EMERGING CLOUD INDEX and the First Trust Cloud Computing ETF (SKYY - Free Report) tracks ISE Cloud Computing Index. WisdomTree Cloud Computing ETF has $598.86 million in assets, First Trust Cloud Computing ETF has $2.98 billion. WCLD has an expense ratio of 0.45% and SKYY charges 0.60%.
Bottom Line
To 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.