Should You Invest in the Global X Cloud Computing ETF (CLOU)?

Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the Global X Cloud Computing ETF (CLOU) is a passively managed exchange traded fund launched on April 12, 2019.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways 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 3, placing it in top 19%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $274.33 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. CLOU seeks to match the performance of the INDXX GLOBAL CLOUD COMPUTING INDEX before fees and expenses.

The Indxx Global Cloud Computing Index provides exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.68%, making it on par with most peer products in the space.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Datadog Inc - Class A (DDOG) accounts for about 6.76% of total assets, followed by Snowflake Inc (SNOW) and Twilio Inc - A (TWLO).

The top 10 holdings account for about 46.99% of total assets under management.

Performance and Risk

The ETF has added about 23.61% so far this year and it's up approximately 31.7% in the last one year (as of 08/12/2026). In that past 52-week period, it has traded between $17.6 and $28.09.

The ETF has a beta of 1.07 and standard deviation of 26.89% for the trailing three-year period. With about 40 holdings, it has more concentrated exposure than peers.

Alternatives

Global X 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, CLOU is a great 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.

WisdomTree Cloud Computing ETF (WCLD) tracks BVP NASDAQ EMERGING CLOUD INDEX and the First Trust Cloud Computing ETF (SKYY) tracks ISE Cloud Computing Index. WisdomTree Cloud Computing ETF has $311.29 million in assets, First Trust Cloud Computing ETF has $3.25 billion. WCLD has an expense ratio of 0.45%, and SKYY charges 0.6%.

Bottom Line

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.

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This article originally published on Zacks Investment Research (zacks.com).

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