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Should You Invest in the WisdomTree Cloud Computing ETF (WCLD)?
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Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Cloud Computing segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Wisdomtree. It has amassed assets over $712.28 million, making it one of the larger ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD 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.
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 0.45%, making it one of the cheaper products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 86.10% of the portfolio. Financials and Telecom round out the top three.
Looking at individual holdings, Squarespace Inc - Class A (SQSP - Free Report) accounts for about 2.07% of total assets, followed by Momentive Global Inc (MNTV) and Asana Inc - Cl A (ASAN - Free Report) .
The top 10 holdings account for about 17.79% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree Cloud Computing ETF return is roughly 28.71% so far, and was up about 14.88% over the last 12 months (as of 09/05/2023). WCLD has traded between $22.93 and $34.49 in this past 52-week period.
The ETF has a beta of 1.08 and standard deviation of 41.69% for the trailing three-year period. With about 70 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Cloud Computing ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, WCLD 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.
Global X Cloud Computing ETF (CLOU - Free Report) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY - Free Report) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $587.91 million in assets, First Trust Cloud Computing ETF has $2.88 billion. CLOU has an expense ratio of 0.68% and SKYY charges 0.60%.
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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Should You Invest in the WisdomTree Cloud Computing ETF (WCLD)?
Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Cloud Computing segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Wisdomtree. It has amassed assets over $712.28 million, making it one of the larger ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD 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.
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 0.45%, making it one of the cheaper products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 86.10% of the portfolio. Financials and Telecom round out the top three.
Looking at individual holdings, Squarespace Inc - Class A (SQSP - Free Report) accounts for about 2.07% of total assets, followed by Momentive Global Inc (MNTV) and Asana Inc - Cl A (ASAN - Free Report) .
The top 10 holdings account for about 17.79% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree Cloud Computing ETF return is roughly 28.71% so far, and was up about 14.88% over the last 12 months (as of 09/05/2023). WCLD has traded between $22.93 and $34.49 in this past 52-week period.
The ETF has a beta of 1.08 and standard deviation of 41.69% for the trailing three-year period. With about 70 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Cloud Computing ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, WCLD 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.
Global X Cloud Computing ETF (CLOU - Free Report) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY - Free Report) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $587.91 million in assets, First Trust Cloud Computing ETF has $2.88 billion. CLOU has an expense ratio of 0.68% and SKYY charges 0.60%.
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.