Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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
WCLD is managed by Wisdomtree, and this fund has amassed over $226.89 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 WCLD are 0.45%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 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.
WCLD's heaviest allocation is in the Information Technology sector, which is about 94.3% of the portfolio.
Looking at individual holdings, Mongodb Inc (MDB) accounts for about 2.69% of total assets, followed by Confluent Inc-class A (CFLT) and Semrush Holdings Inc-a (SEMR).
WCLD's top 10 holdings account for about 21.64% of its total assets under management.
Performance and Risk
The ETF has lost about -19.48% and is down about -30.22% so far this year and in the past one year (as of 02/17/2026), respectively. WCLD has traded between $26.96 and $40.93 during this last 52-week period.
The fund has a beta of 1.12 and standard deviation of 28.13% for the trailing three-year period. With about 70 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 $215.29 million in assets, First Trust Cloud Computing ETF has $2.47 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
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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WisdomTree Cloud Computing ETF (WCLD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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