Cloud computing is one of the sub-sectors in technology that should continue to thrive as a heavy reliance on tech continues amid the pandemic. When you throw artificial intelligence (AI) into the mix, the cloud computing space becomes even more of a disruptive force.

“As far as cloud goes, AI is a key enabler of several ways in which we can expect technology to adapt to our needs throughout 2021,” a Forbes article noted. “Cloud-based as-a-service platforms enable users on just about any budget and with any level of skill to access machine learning functions such as image recognition tools, language processing, and recommendation engines. Cloud will continue to allow these revolutionary toolsets to become more widely deployed by enterprises of all sizes and in all fields, leading to increased productivity and efficiency.”

“Autonomous vehicles, smart city infrastructure, and pandemic response planning are all fields of research where the effects of smarter algorithms delivered through cloud services will be felt,” the article said further. “Machine learning also plays a big part in the logistics processes that keep cloud data centers up and running. Cooling systems, networks of hardware, and power usage in these delicate and expensive environments can all be monitored and managed by AI algorithms in order to optimize running efficiency and minimize their impact on the environment. Research and development in this field are likely to continue to lead to new breakthroughs in data center speed and efficiency.”

As cloud computing continues to power through 2020 and beyond, one fund ETF investors should consider is the Global X Cloud Computing ETF (Nasdaq: CLOU). Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services.

The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.

CLOU YTD Performance

An additional fund to consider in the cloud computing space is the WisdomTree Cloud Computing Fund (WCLD). The fund seeks to track the price and yield performance of the BVP Nasdaq Emerging Cloud Index, which is designed to track the performance of emerging public companies primarily involved in providing cloud computing software and services to their customers.

WCLD YTD Performance

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