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The coronavirus pandemic has accelerated the move to the cloud as companies are trying to support their employees working remotely. Major cloud computing providers reported surging demand for their products during the recent earnings calls.
Remote working could become the norm even after the pandemic subsides, as companies realize that it actually improves productivity. Facebook (FB - Free Report) and Alphabet’s Google (GOOGL - Free Report), have extended their work from home policies till year-end, while Twitter (TWTR - Free Report), has told its employees that they could work remotely forever.
Cloud computing is more secure as also cheaper than traditional systems. It also provides firms a lot of flexibility and agility in scaling up or down their computing capacity according to business needs.
The First Trust Cloud Computing ETF (SKYY) tracks a modified equal-weighted index of infrastructure, platform, and software cloud companies. Microsoft (MSFT - Free Report), Amazon (AMZN - Free Report), and Alphabet are its top holdings.
The Global X Cloud Computing ETF (CLOU) hold companies that are positioned to benefit from the increased adoption of cloud computing. While Amazon, Microsoft, and Alphabet are included in the portfolio, the fund’s top holdings are faster-growing companies like Twilio (TWLO - Free Report), Zoom Video (ZM), and Shopify (SHOP - Free Report).
The WisdomTree Cloud Computing ETF (WCLD) tracks an equal-weighted index of emerging companies focused on cloud software and services. The latest entrant in the space--the ETF Wedbush ETFMG Global Cloud Technology ETF (IVES)--holds “undercover gems of cloud technology.” The ETF changed its index in April.
Please watch the short video above to learn more about these ETFs that have significantly outperformed the broader market this year.
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