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.

Here is the deal with that index and it explains the inclusion of stocks like Netflix and Facebook (NasdaqGS: FB) in SKYY. The ETF’s index can hold companies that are not pure play cloud firms as long as those firms “provide goods and services in support of the cloud computing space.” SKYY can also hold tech conglomerates as long as those companies “indirectly utilize or support the use of cloud computing technology,” according to First Trust.

Indexing quirks can be found throughout the ETF universe. Again, SKYY investors are not complaining. The ETF has added $54.5 million of its $452.3 million in assets under management this year and was one of just 27 ETFs to hit an all-time high on Wednesday.

First Trust ISE Cloud Computing Index Fund