The WisdomTree Cloud Computing ETF (WCLD) made its debut on 09/06/2019, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Wisdomtree. WCLD has been able to amass assets over $348.08 million, making it one of the average sized ETFs in the Technology ETFs. 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.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.
WCLD's 12-month trailing dividend yield is 0.00%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For WCLD, it has heaviest allocation in the Information Technology sector --about 92.4% of the portfolio.
Looking at individual holdings, Palo Alto Networks Inc (PANW) accounts for about 2.7% of total assets, followed by Jfrog Ltd (FROG) and Crowdstrike Holdings Inc - A (CRWD).
The top 10 holdings account for about 23.03% of total assets under management.
Performance and Risk
So far this year, WCLD return is roughly 16.97%, and it's up approximately 16.8% in the last one year (as of 09/03/2026). During this past 52-week period, the fund has traded between $24.09 and $43.15.
The fund has a beta of 1.09 and standard deviation of 31.40% for the trailing three-year period. With about 66 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree Cloud Computing ETF is a reasonable option for investors seeking to outperform the Technology ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
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 $364.54 million in assets, First Trust Cloud Computing ETF has $3.27 billion. CLOU has an expense ratio of 0.68% and SKYY changes 0.60%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
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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WisdomTree Cloud Computing ETF (WCLD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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