Is WisdomTree Cloud Computing ETF (WCLD) a Strong ETF Right Now?

Making its debut on 09/06/2019, smart beta exchange traded fund WisdomTree Cloud Computing ETF (WCLD) provides investors broad exposure to the Technology ETFs category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Wisdomtree, and has been able to amass over $293.07 million, which makes it one of the average sized ETFs in the Technology ETFs. This particular fund 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.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.

WCLD's 12-month trailing dividend yield is 0.00%.

Sector Exposure and Top Holdings

ETFs offer 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.

Looking at individual holdings, Dreyfus Trsy Oblig Cash Mgmt Cl Ins accounts for about 119.46% of total assets, followed by Mongodb Inc (MDB) and Wix.com Ltd (WIX).

Its top 10 holdings account for approximately 135.05% of WCLD's total assets under management.

Performance and Risk

So far this year, WCLD has lost about -7.9%, and is up about 4.11% in the last one year (as of 10/16/2025). During this past 52-week period, the fund has traded between $28.33 and $41.58.

The ETF has a beta of 1.17 and standard deviation of 31.28% for the trailing three-year period. With about 71 holdings, it effectively diversifies company-specific risk .

Alternatives

WisdomTree Cloud Computing ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which 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 $293.86 million in assets, First Trust Cloud Computing ETF has $3.25 billion. CLOU has an expense ratio of 0.68% and SKYY changes 0.60%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs

Bottom Line

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This article originally published on Zacks Investment Research (zacks.com).

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