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Should You Invest in the WisdomTree Cloud Computing ETF (WCLD)?
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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 WisdomTree Cloud Computing ETF (WCLD - Free Report) , a passively managed exchange traded fund launched on 09/06/2019.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 6, placing it in top 38%.
Index Details
The fund is sponsored by Wisdomtree. It has amassed assets over $549.57 million, making it one of the larger ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX before fees and expenses.
The BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers.
Costs
Expense 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 0.45%, making it one of the cheaper products in the space.
Sector Exposure and Top Holdings
Even 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 92.90% of the portfolio.
Looking at individual holdings, Sentinelone Inc -Class A (S - Free Report) accounts for about 1.46% of total assets, followed by Olo Inc - Class A (OLO - Free Report) and Elastic Nv (ESTC - Free Report) .
The top 10 holdings account for about 12.76% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree Cloud Computing ETF has lost about -53.68% so far, and is down about -55.36% over the last 12 months (as of 12/28/2022). WCLD has traded between $22.93 and $52.78 in this past 52-week period.
The ETF has a beta of 1.08 and standard deviation of 44.20% for the trailing three-year period. With about 75 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree 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, WCLD 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.
Global X Cloud Computing ETF (CLOU - Free Report) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY - Free Report) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $528.68 million in assets, First Trust Cloud Computing ETF has $2.52 billion. CLOU has an expense ratio of 0.68% 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 WisdomTree Cloud Computing ETF (WCLD)?
If you're interested in broad exposure to the Technology - Cloud Computing segment of the equity market, look no further than the WisdomTree Cloud Computing ETF (WCLD - Free Report) , a passively managed exchange traded fund launched on 09/06/2019.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 6, placing it in top 38%.
Index Details
The fund is sponsored by Wisdomtree. It has amassed assets over $549.57 million, making it one of the larger ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX before fees and expenses.
The BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers.
Costs
Expense 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 0.45%, making it one of the cheaper products in the space.
Sector Exposure and Top Holdings
Even 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 92.90% of the portfolio.
Looking at individual holdings, Sentinelone Inc -Class A (S - Free Report) accounts for about 1.46% of total assets, followed by Olo Inc - Class A (OLO - Free Report) and Elastic Nv (ESTC - Free Report) .
The top 10 holdings account for about 12.76% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree Cloud Computing ETF has lost about -53.68% so far, and is down about -55.36% over the last 12 months (as of 12/28/2022). WCLD has traded between $22.93 and $52.78 in this past 52-week period.
The ETF has a beta of 1.08 and standard deviation of 44.20% for the trailing three-year period. With about 75 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree 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, WCLD 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.
Global X Cloud Computing ETF (CLOU - Free Report) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY - Free Report) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $528.68 million in assets, First Trust Cloud Computing ETF has $2.52 billion. CLOU has an expense ratio of 0.68% 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.