Can Cloud Computing ETFs Keep Soaring?

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The global cloud computing market has been growing fast and could top $300 billion this year, according to research firm Gartner. The move to the cloud accelerated during the pandemic and is likely to continue in view of the digital transformation.

Recent results of Amazon (AMZN - Free Report), Microsoft (MSFT - Free Report), and Google-parent Alphabet (GOOG - Free Report) benefited from the surge in their cloud-computing businesses.

Many companies now prefer to rely on cloud-based service providers for highly specialized computing services so that they can focus on their core businesses.

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 - Free Report) tracks a modified equal-weighted index of infrastructure, platform, and software cloud companies. Microsoft, Amazon, and Alphabet are among its top holdings.

The Global X Cloud Computing ETF (CLOU - Free Report) holds 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 pure-play cloud companies like Zscaler (ZS - Free Report) 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. Cloudflare (NET) and CrowdStrike (CRWD) are among the top holdings.

The ETF Wedbush ETFMG Global Cloud Technology ETF (IVES - Free Report) holds “undercover gems of cloud technology” companies that are expected to drive the next 10 years of an estimated $1 trillion in cloud spending. Nice (NICE - Free Report) and Coupa Software (COUP - Free Report) and are among its top holdings.

Disclosure: Neena Mishra owns shares of WCLD and CLOU in the ETF Investor portfolio.

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the ...

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