Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund launched on 09/06/2019.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Wisdomtree. It has amassed assets over $462.92 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX before fees and expenses.
The BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 85.20% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Twilio Inc - A (TWLO) accounts for about 2.34% of total assets, followed by Bill Holdings Inc (BILL) and Atlassian Corp -Class A (TEAM).
The top 10 holdings account for about 20.11% of total assets under management.
Performance and Risk
The ETF return is roughly 1.55% and it's up approximately 12.99% so far this year and in the past one year (as of 01/20/2025), respectively. WCLD has traded between $28.88 and $41.46 during this last 52-week period.
The ETF has a beta of 1.14 and standard deviation of 38.77% for the trailing three-year period. With about 65 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Cloud Computing ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, WCLD is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Global X Cloud Computing ETF (CLOU) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $354.49 million in assets, First Trust Cloud Computing ETF has $3.75 billion. CLOU has an expense ratio of 0.68% and SKYY charges 0.60%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Get it free >>WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
First Trust Cloud Computing ETF (SKYY): ETF Research Reports
Global X Cloud Computing ETF (CLOU): ETF Research Reports
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
