Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the Global X Cloud Computing ETF (CLOU) is a passively managed exchange traded fund launched on April 12, 2019.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways 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 Global X Management. It has amassed assets over $272.57 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. CLOU seeks to match the performance of the INDXX GLOBAL CLOUD COMPUTING INDEX before fees and expenses.
The Indxx Global Cloud Computing Index provides exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology.
Costs
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 0.68%, making it one of the more expensive 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.Looking at individual holdings, Shopify Inc - Class A (SHOP) accounts for about 5.89% of total assets, followed by Snowflake Inc (SNOW) and Zscaler Inc (ZS).
The top 10 holdings account for about 46.61% of total assets under management.
Performance and Risk
Year-to-date, the Global X Cloud Computing ETF has lost about 5.97% so far, and is down about 8.53% over the last 12 months (as of 12/02/2025). CLOU has traded between $18.31 and $26.34 in this past 52-week period.
The ETF has a beta of 1.11 and standard deviation of 25.12% for the trailing three-year period. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
Global X 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, CLOU is a great 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.
WisdomTree Cloud Computing ETF (WCLD) tracks BVP NASDAQ EMERGING CLOUD INDEX and the First Trust Cloud Computing ETF (SKYY) tracks ISE Cloud Computing Index. WisdomTree Cloud Computing ETF has $288.64 million in assets, First Trust Cloud Computing ETF has $3.03 billion. WCLD has an expense ratio of 0.45%, and SKYY charges 0.6%.
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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Global X Cloud Computing ETF (CLOU): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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