Nasdaq, BVP & WisdomTree Partner to Launch New Cloud Computing Fund
WisdomTree has launched a new ETF that provides unique exposure to rapidly growing cloud computing companies, which leverage a distributed network of servers over the internet. The WisdomTree Cloud Computing Fund (WCLD), listed on the Nasdaq Stock Market, seeks to track the price and yield performance, before fees and expenses, of the BVP Nasdaq Emerging Cloud Index (EMCLOUD), and has an expense ratio of 0.45%.
EMCLOUD’s group of publicly traded cloud software stocks up 38.64% since the beginning of the year1. WCLD offers access to these cloud computing businesses that represent a compelling alternative to broader-based, technology-focused investment strategies.
“As the world becomes increasingly more digital and connected, the global cloud computing market has grown exponentially and is projected to total nearly $697 billion by 20252. The WisdomTree Cloud Computing Fund (WCLD) provides investors with a focused approach to selecting emerging cloud companies and scales the unique expertise of Nasdaq and Bessemer Venture Partners in identifying these companies,” explained Jeremy Schwartz, WisdomTree EVP and Global Head of Research.
"Nasdaq and Bessemer Venture Partners have worked to bring a new benchmark to market, as cloud services gain in importance as tools of business growth," said Dave Gedeon, Vice President and Head of Index Research & Development, Nasdaq Global Indexes. "The BVP Nasdaq Emerging Cloud Index (EMCLOUD) is a tangible way to track the growth of companies that change their industries and empower their clients through use of cloud technology."
WCLD: What’s Under the Hood?
The WisdomTree Cloud Computing Fund will invest in emerging public companies listed on the Nasdaq Stock Market, the New York Stock Exchange, NYSE American or the CBOE Exchange that are primarily involved in providing cloud software and services to their customers.
In order to be considered a cloud computing business and eligible for inclusion, the company must possess the following characteristics, as determined by Bessemer Venture Partners (BVP):
- Cloud Computing Focused: Each company must derive a majority of its revenue from business oriented software products through a cloud delivery model that is a subscription based, volume based, or transaction-based offering.
- Attractive Revenue Growth: New index constituents must have grown annual revenue by at least 15% for each of the last two full fiscal years; existing index constituents must have grown revenue by at least 7% in at least one of the last two fiscal years to remain eligible.
- Liquidity Constraints: Companies in the index must have a minimum market capitalization of $500 million and a minimum three-month average daily dollar trading volume of $5 million.
The cloud companies included in the BVP Nasdaq Emerging Cloud Index and performance of the index are available at https://indexes.nasdaqomx.com/Index/Overview/EMCLOUD.
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $59.9 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide. Nasdaq® and BVP Nasdaq Emerging Cloud Index℠ are registered trademarks and service marks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by WisdomTree. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
[1] Source: Bloomberg, as of 8/31/19. Return is based on the net total return of the BVP Nasdaq Emerging Cloud Index. Past performance is not indicative of future results. You cannot invest directly in an index. [2] Adroit Market Research, May 30, 2019
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.