First Trust has launched an exchange traded fund dedicated to cloud computing in another example of a new ETF that targets a specific investment theme or sector.

Cloud computing is the use of multiple servers available through one digital network. The servers can be accessed through any computer, notebook, tablet, Smartphone or other device. The processing and storage is all done by the cloud server, freeing up one’s own computer and storage space.

The First Trust ISE Cloud Computing Index Fund (NasdaqGM: SKYY) involves companies specifically involved in this much-hyped technology.

The new ETF has already drawn criticism for being “gimmicky,” and some have pointed out the difficulty of tracking the emerging sector. Water ETFs are another category that some say is a gimmick. [Diving Into the Water ETFs.]

Oliver Ludwig at Index Universe points out the First Trust Nasdaq CEA Smartphone Index Fund (NasdaqGM: FONE), launched in February 2011, has gathered only $16.5 million in assets. [First Trust’s Smartphone ETF]

Still, First Trust says cloud computing is projected by some researchers to be one of the fastest-growing IT markets this year.

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