ETFs are no longer a niche financial product; they’re growing rapidly.
ETFs can diversify the portfolio and focus on specific industries without requiring a lot of investment.
The current ETF market holds over $2.6 trillion in AUM globally.
The cloud computing industry is in high demand, and considered as a long-term trend, the global market is estimated to be worth over $300 billion by 2022 with CAGR (Compound Annual Growth Rate) of 15%.
The public cloud services grew 4.5 times more than the whole IT industry, as reported in July 2019.
Cloud users can enjoy the large capacity of network resources with data storage, visualized user-friendly applications at a low cost.
Cloud computing is offering the infrastructure to process large data sets from the internet as well as the power needed for AI (Artificial Intelligence).
Global X Cloud Computing ETF (NASDAQ: CLOU)
CLOU launched in April 2019, is one of this years huge success among ETF market, tracking the “Indxx Global Cloud Computing Index”.
The fund holds a basket of cloud computing firms that benefit from 5 types of technology & service:
- Companies deliver SaaS (Software-as-a-Service)
- Companies provide PaaS (Platform-as-a-Service)
- Companies provide Iaas (Infrastructure-as-a-Service)
- Companies own or manage cloud computing data centers.
- Companies distribute cloud computing software or hardware.
References:
- Best ETFs for 2020: Global X Cloud Computing Fund (CLOU) Will Be King – investorplace.com
- Global X Launches CLOU: An ETF to Access the Shift to Cloud Computing – prnewswire.com
- ETF2020: Preparing for a new horizon – pwc.nl
- Public cloud market is growing 4.5 times faster than overall IT industry: IDC – wire19.com
