SKYY’s top two holdings are Netflix (NasdaqGS: NFLX) and Amazon (NasdaqGS: AMZN). Those stocks combine for 9.2% of the fund’s weight. [New Highs for the Cloud ETF]
Cloud computing refers to a mode of accessing digital information from the internet through web-based tools and applications, instead of directly connecting to a server. The desired data and software packages are stored in servers where a consumer can access them anywhere as long as one has access to the internet. It is SKYY’s somewhat loose interpretation of cloud computing companies that has driven the ETF’s stellar performance. [Tech Investors Love the Cloud]
SKYY tracks the ISE Cloud Computing Index, which “is a modified equal dollar weighted index designed to track the performance of companies actively involved in the cloud computing industry. To be included in the index, a security must be engaged in a business activity supporting or utilizing the cloud computing space, listed on an index-eligible global stock exchange and have a market capitalization of at least $100 million,” according to First Trust.
First Trust ISE Cloud Computing Index Fund
Tom Lydon’s clients own shares of Facebook.