Investing in big tech means investors are already getting some form of cloud computing exposure but can go all-in with ETFs like the Global X Cloud Computing ETF (CLOU).

Even before the pandemic helped make cloud computing a household name, big tech was already utilizing the technology as a cornerstone of their business operations. Now, the biggest names like Amazon and Google are leveraging cloud computing in somewhat of an arms race to see who can use it to its fullest extent.

In the case of Google, cloud computing was one of the main catalysts for its recent earnings beat.

“Google said cloud-computing revenue rose 53% to $4.63 billion vs. estimates of $4.5 billion,” an Investor’s Business Daily article said. “The cloud computing business shaved its operating loss to $591 million from $1.4 billion in the year-earlier quarter.”

Furthermore, it’s not just big tech getting in on the cloud computing action. A nice mix of public and private entities are looking to incorporate more usage of cloud computing to run their core business operations.

“Businesses and governments are signing up for a mix of providers, cherry-picking features and playing the vendors off against each other to keep costs down, company executives and cloud analysts say,” a Wall Street Journal article explained.

As such, an opportunity exists for CLOU, which seeks to track the Indxx Global Cloud Computing Index. The fund holds a basket of companies that stand to benefit from the continuing proliferation of cloud computing technology and services.

More Adoption is Good For CLOU

More businesses using cloud computing platforms are a net positive for CLOU. The fund isn’t too top-heavy with big tech names but incorporates a mix of various market caps operating within the cloud computing space for variety.

“We’re seeing more and more customers adopt a multi-cloud strategy simply because some workloads run better or more cost-effectively on different clouds,” said Clay Magouyrk, executive vice president of Oracle Cloud Infrastructure.

Overall, CLOU offers:

  • High Growth Potential: CLOU enables investors to access high growth potential through companies positioned to benefit from the increased adoption of cloud computing technology.
  • Unconstrained Approach: CLOU’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
  • ETF Efficiency: In a single trade, CLOU delivers access to dozens of companies with high exposure to the cloud computing theme.

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