not vested
Tech ETFs to Buy Now: First Trust Cloud Computing Index Fund (SKYY)
YTD Return: 8%
Expense Ratio: 0.6%
Cloud computing has become an essential component of how we access content, store data and interact with web-based services, and there are more than a handful of companies eagerly vying for a sliver of that ever-growing pie.
Well, you can own a piece of that pie with the SKYY ETF.
With a diverse portfolio of 38 stocks, the SKYY ETF invests in companies “engaged in a business activity supporting or utilizing the cloud computing space,” and the stock needs a market cap above $100 million.
Admittedly, this liberal application of cloud computing allows for stocks like Netflix (NFLX) and Zynga (ZNGA) to sneak their way into its ranks, but there are more than enough legit players in the field to make this a solid play on the future of the cloud.
You know what they say: “Perfect is the enemy of the good.” And with the global cloud computing market projected to be worth $270 billion by 2020, it’s best not to scrutinize the SKYY ETF too closely.
With stocks like Salesforce (CRM), Red Hat (RHT), Rackspace (RHT) and Intuit (INTU) under its umbrella, SKYY shouldn’t have trouble capitalizing on this rapidly growing market.
Source: Investor Place