Cloud is fast emerging as the new model of computing in the technology industry. Many companies now prefer to rely on cloud based service providers for highly specialized computing services so that they can focus on their core businesses.
Cloud computing is more secure as also cheaper than traditional systems. It also provides firms a lot of flexibility and agility in scaling up or down their computing capacity according to business needs. Cloud computing revenues soared 246% in the previous decade, and are expected to grow by another 30% before 2023, per WSJ.
Amazon (AMZN - Free Report) is currently the leader in the cloud market, but Microsoft’s (MSFT - Free Report) cloud revenues are growing faster than Amazon’s. Alibaba (BABA - Free Report) and Google (GOOGL - Free Report) are third and fourth respectively in terms of the global market share.
The First Trust Cloud Computing ETF (SKYY - Free Report) tracks a modified equal weighted index of infrastructure, platform and software cloud companies. Microsoft, Amazon and Alphabet are its top holdings.
The Global X Cloud Computing ETF (CLOU - Free Report) hold companies that are positioned to benefit from the increased adoption of cloud computing. While Amazon, Microsoft and Alphabet are included in the portfolio, the fund’s top holdings are pure-play cloud companies like Zscaler (ZS - Free Report) and Shopify (SHOP - Free Report) .
The WisdomTree Cloud Computing ETF (WCLD - Free Report) tracks an equal-weighted index of emerging companies focused on cloud software and services. DocuSign (DOCU - Free Report) and Ringcentral (RNG - Free Report) are among the top holdings.
To learn more about these ETFs, please watch the short video above.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>