“Indeed, many stocks have seen their prices climb thanks to their cloud efforts. The ISE Cloud Computing Index is up 35% since January as of this writing, compared with the S&P 500’s 8.5% gain. As more companies adopt this technology, investors are likely to see even greater gains,” according to Morningstar.
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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.
“While investors do have to be picky, it’s hard to go wrong with the bigger, more promising names as the cloud is only growing form here,” said Morningstar.
The median market value of SKYY’s holdings is $35.1 billion.
Tom Lydon’s clients owns shares of Apple and Facebook.