Few companies have skyrocketed out of obscurity and into household name status as quickly as Zoom (ZM 1.56%). Zoom is poised to continue as a basic necessity of corporate communications services for a long time. It hit the public markets in 2020 with incredible fanfare due to its triple-digit-percentage revenue growth. The stock has fallen since then, and revenue growth has moderated a bit, but Snowflake is now much more reasonably valued. The fund’s annual dividend of $0.25 yields 0.85% on the current share price.
WCLD has an average market cap of $6.73 billion, or about a quarter of SKYY’s average. The ETF currently has 70 holdings, with the top 10 accounting for 18% of the total portfolio. The cloud computing market is shaped by rapid digital transformation, with businesses increasingly adopting cloud tech to enhance scalability, flexibility, and cost-efficiency. This shift boosts demand for tech such as SaaS, serverless computing, and private clouds to effectively manage these evolving environments. Netflix (NFLX 1.49%) made streaming TV from the cloud an everyday staple.
For years, organizations around the globe have been migrating their operations to the cloud — digital data and services stored within a remote data center and accessed via the internet. However, the rise of remote work during the pandemic accelerated the trend. Now, generative AI has kicked off the next wave of cloud expansion. New additions to the fund must have at least 15% revenue growth in each of the past two years.
The table shows the returns of all cloud technology ETFs in comparison. All return figures are including dividends crypto trading news as of month end. Besides the return the reference date on which you conduct the comparison is important.
For investors not interested in attempting to pick the best cloud stocks, exchange-traded funds (ETFs) are also an option. The First Trust Cloud Computing ETF (SKYY 0.73%) is the largest cloud ETF around, with about $2.9 billion in assets under management. The fund is a basket of 64 cloud infrastructure and software stocks. It has an ETF expense ratio of 0.6%, meaning it costs $6 per year for every $1,000 invested. Currently, SKYY has 65 holdings, with four stocks carrying weightings above 4%, including Microsoft at 4.29%.
It’s all about growth for this business right now, and even small changes in management’s expectations can cause some wild fluctuations in share price. Snowflake could, nevertheless, be a very promising investment for the long term. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated. There are greater complexities involved in managing big cloud computing infrastructure, but the cloud also offers the ability to continuously streamline and automate operations. Due to its success in becoming a full-blown tech platform for businesses of all types and sizes, Salesforce is also a top way to play smaller cloud upstarts. It regularly invests in or acquires stakes in smaller cloud peers — such as when it invested in Snowflake (SNOW 0.6%) before its initial public offering (IPO) in 2020 (and sold it for a profit in 2021).
We provide guidance with ETF comparisons, portfolio strategies, portfolio simulations and investment guides. Over the past three years, the annualized total return for WCLD is 9.87%, 99 basis points higher than SKYY. Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Indxx, nor does Indxx make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Indxx.
Furthermore, global spending on public cloud services is projected to surge by 20.4%, reaching $675.40 billion in 2024. This impressive growth is driven by advancements in generative AI and application modernization. Consequently, cloud computing ETFs offer investors a valuable opportunity to benefit from the expanding cloud industry, capturing the potential of this dynamic sector. Cloud computing ETFs target companies leading the digital revolution by providing essential cloud services such as infrastructure, software, and platforms. As digital transformation accelerates, these ETFs offer investors opportunities for significant growth and innovation, capitalizing on the expanding cloud market.
Its fund outflows came in at $38.02 million over the past month. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. An in-depth look at the leading virtual reality companies stocks in the U.S stock market this year. Carrying everything from water to natural gas, companies here can be a low-risk investment. It’s using Nvidia hardware to make automation even better and even landed Nvidia as a bigger customer using automation software that Nvidia is helping ServiceNow to create.
It gives organizations and their employees more flexibility with important functions such as remote work. The cloud is quickly becoming the ftb.fund basic infrastructure of the future. Snowflake is a young company, though, and the stock will likely be highly volatile for some time.
This tech sector addresses a growing need, presenting tremendous upside. Clicking “Confirm” below will take you to a different website, intended for jurisdictions outside the US. Global X Management Company LLC disclaims responsibility for information, services or products found on the websites linked hereto. All Sector, Industry and Geographic breakdowns, where provided, are based on equity positions held by the ETF and exclude cash, currencies, and other holdings. Cloud computing spans multiple segments, and its most innovative companies include both household names and newcomers from around the world.
SKYY’s top holding is Oracle Corporation (ORCL) with a 4.57% weighting, followed by International Business Machines Corporation (IBM) with a 4.56% weighting, and Nutanix, Inc. Learn to make money by investing in internet of things companies. This area has seen extensive growth in the past few years. Salesforce did fall on hard times in 2022 and faced activist investor pressure to boost profit margins.
To be included in the index, a company must have a minimum market capitalization of $500 million, a minimum free float of 20%, and a three-month average daily dollar trading volume of $5 million. Besides offering cloud infrastructure for small businesses to test and host web-based services and apps, it also offers services for the non-tech-savvy outfit. It acquired a company called Cloudways that offers website building and hosting. Most IT innovations are developed for and funded by large organizations. Yet small businesses still make up about half of the global economy’s production. Most are far behind the curve in making needed digital transformation.
