Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD) is a smart beta exchange traded fund offering 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, WCLD has amassed assets over $224.99 million, making it one of the average sized ETFs in the Technology ETFs. Before fees and expenses, this particular fund seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX .
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.45% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.00%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For WCLD, it has heaviest allocation in the Information Technology sector --about 92.2% of the portfolio.
Taking into account individual holdings, Fastly Inc - Class A (FSLY) accounts for about 2.87% of the fund's total assets, followed by Digitalocean Holdings Inc (DOCN) and Braze Inc-a (BRZE).
WCLD's top 10 holdings account for about 19.89% of its total assets under management.
Performance and Risk
The ETF has lost about -21.91% and is down about -17.6% so far this year and in the past one year (as of 04/30/2026), respectively. WCLD has traded between $24.09 and $36.88 during this last 52-week period.
The ETF has a beta of 1.13 and standard deviation of 29.15% for the trailing three-year period. With about 66 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree Cloud Computing ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
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 $210.62 million in assets, First Trust Cloud Computing ETF has $2.45 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
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WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).