Should You Invest in the First Trust Cloud Computing ETF (SKYY)?

Core Insights - The First Trust Cloud Computing ETF (SKYY) is designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, launched on May 27, 2011 [1] - The ETF has accumulated over $3.03 billion in assets, making it one of the larger ETFs in its category [3] - SKYY seeks to match the performance of the ISE Cloud Computing Index, which tracks companies in the cloud computing industry [3] Fund Details - The ETF has an annual operating expense ratio of 0.6%, which is competitive within its peer group [4] - The fund has a significant allocation of approximately 84.1% in the Information Technology sector, with Telecom and Consumer Discretionary also being notable sectors [5] - The top three holdings include Arista Networks, Inc. (6.2% of total assets), Oracle Corporation, and Alphabet Inc. (class A) [6] Performance Metrics - As of September 2, 2025, the ETF has gained about 7.09% year-to-date and approximately 30.26% over the past year [7] - The ETF has a beta of 1.23 and a standard deviation of 28.19% over the trailing three-year period, indicating medium risk [7] - The ETF effectively diversifies company-specific risk with around 62 holdings [7] Investment Alternatives - SKYY holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong potential for investors seeking exposure to Technology ETFs [8] - Other ETFs in the cloud computing space include Global X Cloud Computing ETF (CLOU) and WisdomTree Cloud Computing ETF (WCLD), with assets of $313.01 million and $341.46 million respectively [9]