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Should You Invest in the Global X Cloud Computing ETF (CLOU)?
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The Global X Cloud Computing ETF (CLOU - Free Report) was launched on 04/12/2019, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Cloud Computing segment of the equity market.
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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $671.97 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 2.63%.
Sector Exposure and Top Holdings
It 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.
Looking at individual holdings, Digitalocean Holdings Inc (DOCN - Free Report) accounts for about 5.40% of total assets, followed by Zoom Video Com-A (ZM - Free Report) and Salesforce Inc (CRM - Free Report) .
The top 10 holdings account for about 43.65% of total assets under management.
Performance and Risk
The ETF has lost about -32.92% so far this year and is down about -37.49% in the last one year (as of 08/23/2022). In that past 52-week period, it has traded between $15.63 and $32.14.
The ETF has a beta of 1.03 and standard deviation of 33.68% for the trailing three-year period. With about 37 holdings, it has more concentrated exposure than peers.
Alternatives
Global X 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, CLOU 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.
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 $713.82 million in assets, First Trust Cloud Computing ETF has $3.53 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)?
The Global X Cloud Computing ETF (CLOU - Free Report) was launched on 04/12/2019, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Cloud Computing segment of the equity market.
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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $671.97 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 2.63%.
Sector Exposure and Top Holdings
It 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.
Looking at individual holdings, Digitalocean Holdings Inc (DOCN - Free Report) accounts for about 5.40% of total assets, followed by Zoom Video Com-A (ZM - Free Report) and Salesforce Inc (CRM - Free Report) .
The top 10 holdings account for about 43.65% of total assets under management.
Performance and Risk
The ETF has lost about -32.92% so far this year and is down about -37.49% in the last one year (as of 08/23/2022). In that past 52-week period, it has traded between $15.63 and $32.14.
The ETF has a beta of 1.03 and standard deviation of 33.68% for the trailing three-year period. With about 37 holdings, it has more concentrated exposure than peers.
Alternatives
Global X 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, CLOU 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.
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 $713.82 million in assets, First Trust Cloud Computing ETF has $3.53 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.