Should You Invest in the Global X Cloud Computing ETF (CLOU)?

Core Viewpoint - The Global X Cloud Computing ETF (CLOU) provides broad exposure to the Technology - Cloud Computing segment, appealing to both institutional and retail investors due to its low costs and transparency [1][2]. Group 1: ETF Overview - CLOU is a passively managed ETF launched on April 12, 2019, with assets exceeding $333.37 million, categorizing it as an average-sized ETF in its sector [1][3]. - The fund aims to match the performance of the INDXX GLOBAL CLOUD COMPUTING INDEX, which includes companies benefiting from cloud computing technology [4]. Group 2: Costs and Performance - The annual operating expense ratio for CLOU is 0.68%, making it one of the more expensive ETFs in the cloud computing space [5]. - As of July 30, 2025, CLOU has experienced a year-to-date loss of approximately 2.13% but has gained about 17.6% over the past year, with trading prices ranging from $18.22 to $26.34 in the last 52 weeks [7]. Group 3: Holdings and Sector Exposure - Zscaler Inc (ZS) constitutes about 5.15% of CLOU's total assets, with the top 10 holdings representing approximately 43.44% of total assets under management [6]. - CLOU has a beta of 1.10 and a standard deviation of 27.91% over the trailing three-year period, indicating more concentrated exposure compared to its peers [7]. Group 4: Alternatives - CLOU holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong potential for investors seeking exposure to the Technology ETFs segment [8]. - Other alternatives in the cloud computing ETF space include WisdomTree Cloud Computing ETF (WCLD) and First Trust Cloud Computing ETF (SKYY), with respective assets of $367.34 million and $3.59 billion [9][10].