Cloud computing is more prevalent nowadays as more companies rely on technology amid social distancing in a Covid-19 world. That said, multi-asset investment platform eToro launched a new cloud computing portfolio that gives retail investors access to some of the most exciting tech companies utilizing the technology.
A press release noted that “cloud computing underpins many of the technologies we use daily, including email, video streaming, and social media. As the world retreated into lockdown this year, cloud services became increasingly important for companies big and small, and the sector is forecast to grow 17% worldwide in 2020 as a result. That growth is expected to continue, with analysts targeting a 14% compound annual growth rate for the sector globally over the next five years.”
“Many of us rely daily on cloud computing services, whether that’s to speak to friends, stream movies or work from home,” said Dani Brinker, head of portfolio investment at eToro, via the press release. “This technology has quietly revolutionized our lives, with some experts suggesting it’s already as important as utilities including electricity, gas, and water. And it’s only just getting started! Cloud computing is vital for many emerging technologies that are set to have a profound influence on the world, including self-driving cars, artificial intelligence, and remote working.”
“eToro is on a mission to simplify investing, making markets accessible and transparent,” Brinker added. “Our growing range of thematic portfolios enable people to invest in ideas they understand and use daily, such as digital retail, food tech, and now, cloud computing.”
Cloud Computing ETF Opportunities
The impact of cloud computing can be felt as more companies are utilizing the technology at a rapid pace to power their core businesses. That’s why Global X ETFs, the New York-based provider of exchange-traded funds, recently launched 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.
Another fund to consider 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. It is non-diversified.
For more market trends, visit the ETF Trends.