The technology sector is proving to be a premier source of strength this year. Just look at the tech-heavy Nasdaq-100 Index (NDX), which was the first of the major domestic equity benchmarks to return to positive territory following the March market swoon.
Within the broader technology universe, several sub-groups are standing out, including cloud computing. For example, the ISE CTA Cloud Computing Index entered Monday with a year-to-date gain of 9.54%.
For awhile, the universe of dedicated cloud computing exchange traded funds was sparsely populated, but that's changed over the past couple of year and some of the new additions to the group are performing well this year. Consider some of the following ideas.
Global X Cloud Computing ETF (CLOU)
The Global X Cloud Computing ETF (NASDAQ:CLOU) remains one of the success stories of the thematic ETF realm. At just about 13 months old, the Global X ETF has nearly $597 million in assets under management, indicating there's room for competition and innovation in the cloud ETF space.
Recently on a string of hitting all-time highs, including Monday, CLOU is up an impressive 18.82% year to date.
WisdomTree Cloud Computing Fund (WCLD)
The WisdomTree Cloud Computing Fund (NASDAQ:WCLD) is another emerging success story in the cloud ETF arena with nearly $80 million in assets under management after coming to market just last September. WCLD follows the BVP Nasdaq Emerging Cloud Index, which is an equal-weight benchmark.
Although WCLD is an equal-weight ETF, it's benefiting from high-flying Zoom Video (NASDAQ:ZM) being its top component. That's helping WCLD to a 2020 gain of 24%. The WisdomTree ETF also hit an all-time high on Monday.
First Trust Cloud Computing ETF (SKYY)
The First Trust Cloud Computing ETF (NASDAQ:SKYY) is the fund that got the cloud ETF party started nearly nine years ago and while it's a behemoth compared to its aforementioned rivals with $3.2 billion in assets, it's not necessarily the best fund in this category.
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