We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WisdomTree Cloud Computing Fund (WCLD - Free Report) topped the list of the best-performing ETFs in the first half with impressive returns of more than 47%.
The rally was primarily driven by the coronavirus pandemic, which has resulted in a dramatic shift in consumer behavior toward the digital world. This is because stay-at-home orders have boosted demand for work and entertainment from home, spurring demand for cloud computing (read: Coronavirus Infections Resurge: Tech ETFs to Thrive).
Cloud computing has encouraged video conferencing, gaming, e-commerce, remote project collaboration, online classes and several other programs. The solid trend continues even with the economy reopening.
Let’s take a closer look at the fundamentals of WCLD.
WCLD in Focus
This fund offers exposure to emerging, fast-growing U.S.-listed companies (including ADRs) primarily focused on cloud software and services. It follows the BVP Nasdaq Emerging Cloud Index, holding 52 stocks in its basket. The fund charges investors 45 bps in fees per year. It has amassed $331.9 million in its asset base and trades in average daily volume of 151,000 shares. The product has a Zacks ETF Rank #2 (read: 5 ETFs That Outshined During 100 Days of Coronavirus Pandemic).
Though most of the stocks in the fund’s portfolio delivered strong returns, some stocks more than doubled in the first half of 2020. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the basket:
Best-Performing Stocks of WCLD
Zoom Video Communications Inc. (ZM - Free Report) : The company provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East and Africa. It has skyrocketed about 265% in the first half. The stock has witnessed positive earnings estimate revision of 75 cents over the past 30 days for the fiscal year ending January 2021 and has an estimated earnings growth rate of 237.1%. It has a Zacks Rank #1 (Strong Buy) and Growth Score of A. The stock holds the second spot in the fund’s basket with 3.6% of the total assets. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zscaler Inc. (ZS - Free Report) : This cloud security company is focused on transforming networks and applications for mobile and cloud-first. The stock has gained nearly 136% in the first half. It has seen a positive earnings estimate revision of a couple of cents for fiscal year ending July 2021 over the past month and has an expected earnings growth rate of 39.7%. Zscaler currently has a Zacks Rank #2 (Buy) and Growth Score of B. The stock occupies the third spot in the fund’s portfolio, making up for 2.9% share.
Datadog Inc. (DDOG - Free Report) : It provides monitoring services for cloud-scale applications which includes monitoring of servers, databases, tools and services, through a SaaS-based data analytics platform. The stock surged more than 135% in the first half and takes the fourth position in the fund’s basket, claiming 2.8% of the assets. It saw no earnings estimate revision for this year over the past month and has an expected earnings growth rate of 400%. Datadog currently has a Zacks Rank #2 and Growth Score of B (read: 5 Niche Tech ETFs That Have Gained More Than 30% in 1H).
Shopify Inc. (SHOP - Free Report) : This company provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses. It has jumped 127.65 in the first half and occupies the ninth spot in the fund’s portfolio, making up for 2.5% share. The stock witnessed no earnings estimate revision and has an expected earnings growth of 70%. It carries a Zacks Rank #3 (Hold).
DocuSign Inc. (DOCU - Free Report) : This company provides e-signature solutions offering services to mortgage, non-profit, government, real estate, insurance, technology and healthcare industries. This stock takes the fifth rank in the fund’s basket with 2.7% allocation. It has delivered robust returns of 127% in the first half. The Zacks Consensus Estimate for this fiscal year (ending January 2021) has move downward to 46 cents from 46 cents over the past month and reflects an earnings growth rate of 48.4% year over year. The stock has a Zacks Rank #2 and Growth Score of A.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Red Hot Stocks in the Top ETF of 1H
WisdomTree Cloud Computing Fund (WCLD - Free Report) topped the list of the best-performing ETFs in the first half with impressive returns of more than 47%.
The rally was primarily driven by the coronavirus pandemic, which has resulted in a dramatic shift in consumer behavior toward the digital world. This is because stay-at-home orders have boosted demand for work and entertainment from home, spurring demand for cloud computing (read: Coronavirus Infections Resurge: Tech ETFs to Thrive).
Cloud computing has encouraged video conferencing, gaming, e-commerce, remote project collaboration, online classes and several other programs. The solid trend continues even with the economy reopening.
Let’s take a closer look at the fundamentals of WCLD.
WCLD in Focus
This fund offers exposure to emerging, fast-growing U.S.-listed companies (including ADRs) primarily focused on cloud software and services. It follows the BVP Nasdaq Emerging Cloud Index, holding 52 stocks in its basket. The fund charges investors 45 bps in fees per year. It has amassed $331.9 million in its asset base and trades in average daily volume of 151,000 shares. The product has a Zacks ETF Rank #2 (read: 5 ETFs That Outshined During 100 Days of Coronavirus Pandemic).
Though most of the stocks in the fund’s portfolio delivered strong returns, some stocks more than doubled in the first half of 2020. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the basket:
Best-Performing Stocks of WCLD
Zoom Video Communications Inc. (ZM - Free Report) : The company provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East and Africa. It has skyrocketed about 265% in the first half. The stock has witnessed positive earnings estimate revision of 75 cents over the past 30 days for the fiscal year ending January 2021 and has an estimated earnings growth rate of 237.1%. It has a Zacks Rank #1 (Strong Buy) and Growth Score of A. The stock holds the second spot in the fund’s basket with 3.6% of the total assets. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zscaler Inc. (ZS - Free Report) : This cloud security company is focused on transforming networks and applications for mobile and cloud-first. The stock has gained nearly 136% in the first half. It has seen a positive earnings estimate revision of a couple of cents for fiscal year ending July 2021 over the past month and has an expected earnings growth rate of 39.7%. Zscaler currently has a Zacks Rank #2 (Buy) and Growth Score of B. The stock occupies the third spot in the fund’s portfolio, making up for 2.9% share.
Datadog Inc. (DDOG - Free Report) : It provides monitoring services for cloud-scale applications which includes monitoring of servers, databases, tools and services, through a SaaS-based data analytics platform. The stock surged more than 135% in the first half and takes the fourth position in the fund’s basket, claiming 2.8% of the assets. It saw no earnings estimate revision for this year over the past month and has an expected earnings growth rate of 400%. Datadog currently has a Zacks Rank #2 and Growth Score of B (read: 5 Niche Tech ETFs That Have Gained More Than 30% in 1H).
Shopify Inc. (SHOP - Free Report) : This company provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses. It has jumped 127.65 in the first half and occupies the ninth spot in the fund’s portfolio, making up for 2.5% share. The stock witnessed no earnings estimate revision and has an expected earnings growth of 70%. It carries a Zacks Rank #3 (Hold).
DocuSign Inc. (DOCU - Free Report) : This company provides e-signature solutions offering services to mortgage, non-profit, government, real estate, insurance, technology and healthcare industries. This stock takes the fifth rank in the fund’s basket with 2.7% allocation. It has delivered robust returns of 127% in the first half. The Zacks Consensus Estimate for this fiscal year (ending January 2021) has move downward to 46 cents from 46 cents over the past month and reflects an earnings growth rate of 48.4% year over year. The stock has a Zacks Rank #2 and Growth Score of A.
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 >>