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Cloud Computing ETF (SKYY) Hits New 52-Week High

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For investors seeking momentum, First Trust Cloud Computing ETF (SKYY - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 34.5% from its 52-week low price of $45.36/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

SKYY in Focus

The fund looks to track 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. It charges 60 bps in fees (see all Technology ETFs here).

Why the Move?

Cloud computing is a fast-growing technology space. It is a process in which data or software is stored outside a computer. Research firm Gartner expects worldwide public cloud services market is estimated to expand from $182.4B in 2018 to $331.2B in 2022, attaining a compound annual growth rate (CAGR) of 12.6%.

More Gains Ahead?

The fund has a Zacks Rank #3 (Hold). It also has a positive weighted alpha of 23.40, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

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