Seeking extensive exposure to the equity market’s Technology – Cloud Computing sector? You ought to take into account the 05/27/2011-launched First Trust Cloud Computing ETF (SKYY), an exchange traded fund that is passively managed.

A growing number of institutional and retail investors are turning to passively managed first trust cloud computing etf because of their cheap costs, transparency, flexibility, and tax efficiency. They make great investments for the long term.
In addition to being funds of convenience, sector exchange-traded funds (first trust cloud computing etf) provide a variety of options to get low-risk, diversified exposure to a large number of businesses in particular sectors. One of the 16 broad Zacks sectors included in the Zacks Industry classification is technology – cloud computing. It is now in the bottom 38% of rankings, at position 10. newlifedn.com will provide some of information for you in this post.

First Trust Cloud Computing ETF

Index Details

First Trust Advisors is the fund’s sponsor. It is one of the bigger first trust cloud computing etf seeking to replicate the performance of the Technology – Cloud Computing sector of the equity market with assets of approximately $2.73 billion. Prior to fees and expenses, SKYY aims to mirror the performance of the ISE Cloud Computing Index.

To monitor the performance of businesses actively engaged in the cloud computing sector, the ISE Cloud Computing Index is a modified market capitalization weighted index.

Costs

Cost is a crucial consideration when choosing the best first trust cloud computing etf, and if all other elements are equal, less priced funds can do far better than more expensive ones.

This ETF’s annual operating costs are 0.60%, which puts it on par with the majority of its peer products in the market.

Its trailing 12-month dividend yield is 0.01%.

Sector Exposure and Top Holdings

Even though first trust cloud computing etf reduce single stock risk through diversified exposure, it is nevertheless crucial to research a fund’s holdings before making an investment. Fortunately, the majority of ETFs are highly transparent products that reveal their holdings every day.

About 84.70% of the portfolio of this ETF is allocated to the information technology sector. Consumer discretionary and telecom make up the final two spots.

Pure Storage, Inc. (class A) (PSTG), followed by Mongodb, Inc. (MDB) and Oracle Corporation (ORCL), makes up around 4.75% of the total assets when looking at individual holdings.

About 38.13% of the total assets under management are comprised of the top 10 holdings.

Performance and Risk

As of 08/11/2023, the ETF has increased by around 33.62% and has decreased by about -1.17% over the last year. SKYY’s previous 52-week range of prices for this stock was $55.50 and $81.11.

The ETF is a medium risk option in the market with a beta of 1.05 and a trailing three-year standard deviation of 32.21%. It successfully diversifies company-specific risk with its 65 or so assets.

Alternatives

The First Trust Cloud Computing ETF has a Zacks ETF Rank of 2 (Buy), which is determined, among other things, by the predicted asset class return, expense ratio, and momentum. As a result, SKYY is a fantastic choice for investors looking to gain exposure to the Technology ETFs market. Investors may also want to have a look at some other ETFs in the market.

Both the WisdomTree Cloud Computing ETF (WCLD) and the Global X Cloud Computing ETF (CLOU) follow the BVP NASDAQ EMERGING CLOUD INDEX. Assets for the WisdomTree Cloud Computing ETF total $688.20 million, compared to $584.17 million for the Global X Cloud Computing ETF. WCLD charges 0.45%, whilst CLOU has an expenditure ratio of 0.68%.

Conclusion

In the evolving world of technology investments, the First Trust Cloud Computing ETF shines as a beacon of innovation and potential. We have explored the complex world of cloud computing during this investigation, and we have seen how this ETF provides investors with a tactical entry point into the always increasing field of cloud-based technology.

Cloud computing remains a pillar of contemporary company operations as the digital age develops because it fosters efficiency, scalability, and revolutionary potential. For investors, the First Trust Cloud Computing ETF offers a special way to profit from this technological transformation. This ETF provides access to the potential growth and profitability inherent in this developing industry by investing in a wide portfolio of businesses providing cloud services, infrastructure, and software.

The ETF’s track record of success and underlying holdings also demonstrate a dedication to staying ahead of market and technological changes. It gives investors the ability to take part in both the expansion of existing cloud giants and the advent of cutting-edge startups that are influencing the direction of cloud computing.

The First Trust Cloud Computing ETF provides a strategic way to diversify investment portfolios and capitalize on the forces of technology advancement in a world where digital transformation is altering companies and economies. The potential for long-term returns and the opportunity to promote the cloud-based solutions that are altering how organizations run and how people connect should be kept in mind as you think through your investment strategy.