From Nasdaq: 2025-06-05 06:20:00

Launched on 05/27/2011, the First Trust Cloud Computing ETF (SKYY) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market. Market cap weighted indexes were created to reflect the market, or a specific segment of the market, dominated by products based on this strategy. SKYY seeks to match the performance of the ISE Cloud Computing Index before fees and expenses.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns. However, some investors believe in beating the market by superior stock selection, opting for non-cap weighted strategies known as smart beta. SKYY has a 12-month trailing dividend yield of 0% and an annual operating expense of 0.60%.

SKYY’s top 10 holdings account for about 39.18% of its total assets under management, with the heaviest allocation to the Information Technology sector. Microsoft Corporation (MSFT) accounts for about 4.79% of the fund’s total assets. SKYY has lost about -1.65% year-to-date and is up approximately 30.91% in the last one year.

Investors looking for alternatives to SKYY can consider Global X Cloud Computing ETF (CLOU) and WisdomTree Cloud Computing ETF (WCLD). CLOU tracks INDXX GLOBAL CLOUD COMPUTING INDEX, while WCLD tracks BVP NASDAQ EMERGING CLOUD INDEX. CLOU has an expense ratio of 0.68% and WCLD charges 0.45%.

First Trust Cloud Computing ETF (SKYY) is a medium risk choice in the space with a beta of 1.22 and standard deviation of 30.08% for the trailing three-year period. For more information on this product and other ETFs, investors can visit Zacks ETF Center and sign up for Zacks’ free Fund Newsletter for the latest news and analysis.



Read more at Nasdaq: Is First Trust Cloud Computing ETF (SKYY) a Strong ETF Right Now?