Should You Invest in the WisdomTree Cloud Computing ETF (WCLD)?
If you're interested in broad exposure to the Technology - Cloud Computing segment of the equity market, look no further than the WisdomTree Cloud Computing ETF (WCLD), a passively managed exchange traded fund launched on 09/06/2019.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
The fund is sponsored by Wisdomtree. It has amassed assets over $391.32 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX before fees and expenses.
The BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers.
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 86.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Okta Inc (OKTA) accounts for about 2.11% of total assets, followed by Zscaler Inc (ZS) and Dropbox Inc-Class A (DBX).
The top 10 holdings account for about 18.34% of total assets under management.
So far this year, WCLD has lost about -6.10%, and is up roughly 9.79% in the last one year (as of 05/27/2025). During this past 52-week period, the fund has traded between $28.33 and $41.58.
The ETF has a beta of 1.24 and standard deviation of 35.46% for the trailing three-year period. With about 69 holdings, it effectively diversifies company-specific risk.
WisdomTree Cloud Computing ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, WCLD is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Global X Cloud Computing ETF (CLOU) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $336.45 million in assets, First Trust Cloud Computing ETF has $3.35 billion. CLOU has an expense ratio of 0.68% and SKYY charges 0.60%.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
First Trust Cloud Computing ETF (SKYY): ETF Research Reports
Okta, Inc. (OKTA) : Free Stock Analysis Report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
Global X Cloud Computing ETF (CLOU): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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