As phones such as the Samsung Galaxy SIII and the Apple iPhone 5 flood consumer markets worldwide, we have a second opportunity to examine an ETF that focuses specifically on “Cloud Computing.”

SKYY (First Trust ISE Cloud Computing Index) debuted in July of 2011, and provides exposure to a segment of the technology industry that is defined for its “use of computing resources (hardware and software) that are delivered as a service over a network (typically the internet).”

Users of smartphones no doubt have figured out that the stability and usability of their “apps” depends on network/server conditions, and “cloud” based programs such as “Google Play” and “Netflix Streaming” have become increasingly popular among users. SKYY follows an equal weighted indexing approach and owns forty two individual equity names that are said to be representative of the Cloud Computing industry.

Top five holdings in the ETF are as follows: RAX (4.37%), N (4.21%), ARUN (4.06%), SAP (3.97%), and AKAM (3.94%). As for Google and Netflix since we mentioned their services earlier, NFLX weighs in at 3.76% of the portfolio currently, and the number six holding, while GOOG has a 3.65% weighting and is the seventh ranked holding in the fund.

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