ETFs are similar to the stock market in the sense that they are traded on the same hours. However, unlike stocks, these are not a single set of securities rather they come as a basket of similar instruments.
With so many things going virtual since the start of the pandemic, cloud exchange-traded funds have become the first choice of many traders. Many companies on the cloud interface have seen a considerable increase in their percentage over the past months. To ensure that you do not miss the trading opportunity, we have handpicked the best cloud ETFs to trade in 2021.
What are the best cloud ETFs?
There are many popular cloud ETFs, the overwhelming activity in this space creates a lot of volatility and liquidity for traders to capitalize on. Exchange-Traded Funds were first introduced back in the 1990s, which grew considerably since their inception.
Now traders worldwide can trade ETFs, which are incredibly beneficial as they provide low risk compared with the share market. They are a better alternative to mutual funds and allow you to diversify your portfolio by investing in different instruments under single security.
Invest in the best performing ETFs in Three steps
Open a free account
Opening an account with a broker is entirely free. Click on the signup button and provide your email address and create a password. Some brokers may need to verify your mail and identity under various KYC policies.
Choose cloud ETFs
Choose the best cloud ETFs to trade. Use your market analysis skills and select the ones that will be profitable according to your trading style.
Deposit money into your account and start trading. It is essential to use the proper risk management and mindset to maintain your consistency.
Where can I trade the best cloud ETFs?
As mentioned before, you can hold ETFs for long term or day trade via brokers. There are hundreds of companies in the industry that offer the best features and services to traders. It may be a challenging job to scan the best ones; therefore, we have in our table the top three brokerages to trade Exchange Traded Funds below:
Leading tier authorities regulate all the brokers that made our list. These brokerages have the best liquidity servers, and minimal latency attained through VPS support. The commissions are at the lowest end, and customer support is available through live chat, phone, and email for the best services.
Best Cloud ETFs to Buy Now
The financial industry is booming despite the pandemic. There were some initial hiccups; however, the present and the prospects are bright enough. It is essential not to miss out on the opportunity to invest at the right time. By taking a peek at the best cloud ETFs to buy, you can decide on the security that will be perfect for you to put the cash inside.
- First Trust SKYY
- Global X CLOU
- Wisdom Tree WCLD
- Wedbush ETFMG Global IVES
First Trust SKYY
First Trust includes the top companies such as Microsoft and Amazon, which contributes up to 4 and 5% of its portfolio. The weighted average market cap for the asset stands at $221.85 billion, with an expense ratio being 0.60% and an average spread of $0.05. The ETF was the first among all others that opened the industry’s eyes to cloud computing securities. It includes three groups that are infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Over the past couple of years, the Exchange Traded Fund’s price has been on a constant uptrend with a slight hiccup during the pandemic.
Global X CLOU
The cloud application ETF has its holdings in zoom, Microsoft, Amazon, Alibaba, and many more top companies. It mainly includes those firms that can get inside the cloud technology, develop it further and offer Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). The market cap of CLOU stands at $1.65 billion. The growth potential is nearly efficient with the Exchange Traded Fund and provides access to many companies. Over the past year, the ETF is on a constant rise.
Wisdom Tree WCLD
The expense ratio of Wisdom Tree stands at 0.45% and has an average spread of $0.05. The weighted market cap is around $30.55 billion. WCLD includes a basket of stocks that are mainly related to cloud software and services. For a company to be included in the ETF, some requirements consist of a 15% growth rate for the last two years, enough liquidity, and it should be on the US stock exchange. The Exchange Traded Fund itself is on the NASDAQ. With an uptrend over the past year, the asset currently trades near $60.
Wedbush ETFMG Global IVES
MSI ECG fund rating of Wedbush stands at BBB with a score of 5.37/10. The ETF is similar to CLOU because it also requires companies to get 50% of their total revenue via cloud computing. The asset includes a significant portion of securities outside the US and those that mainly provide infrastructure, storage, backup, cloud software platforms, and many more. Wedbush has seen its fair share of ups and downs in price over the past three years.
Expert tip on investing in best cloud ETFs
Take a look if the ETF is actively or passively managed. Active ETFs are those that professionals handpick to increase the output and trade regardless of what market conditions are. They have a higher expense ratio than passive management of ETFs that are traded usually and perform better than their counterpart. So, in short, don’t spend more on what might be worthless.
Why trade the best cloud ETFs?
ETFs allow you to diversify your portfolio as you are generally accessing thousands of instruments under single security. Exchange Traded Funds help mitigate the amount of risk exposure. They also have lower costs in trading and are beneficial in annual tax distribution as they trade less than mutual funds. You can also use their advantage to your day trading by comparing the rise and fall of an ETF with a single instrument.
Exchange Traded Funds are similar to stock markets so they are available to trade throughout the day. They have a low investment threshold and abundant liquidity, so you are not stuck waiting for your order to be filled.
Frequently Asked Questions
First Trust SKYY is the best cloud ETF.
Yes, ETFs are a good investment right now.
Everyone from beginners to professionals to banks and institutions invests in the best cloud ETFs.
A share depicts a single security price, while ETFs show all securities’ value in a single class.
Yes, the best performing ETFs are a good investment for beginners.
The size of ETFs surpasses $5 trillion in value.