ETF-specialist WisdomTree has launched an ETF that provides exposure to “fast-growing” cloud computing companies, which leverage a distributed network of servers over the internet.
The WisdomTree Cloud Computing Ucits ETF is listed on the London Stock Exchange and seeks to track the price and yield performance the BVP Nasdaq Emerging Cloud Index. It has an expense ratio of 0.40%.
“As the world becomes increasingly more digital and connected, the global cloud computing market has grown exponentially and is projected to total nearly $697bn (€631bn) by 2025,” said Jeremy Schwartz, global head of research, WisdomTree.
Dave Gedeon, head of index research & development, Nasdaq Global Indexes said: “The BVP Nasdaq Emerging Cloud Index is a tangible way to track the growth of companies that change their industries and empower their clients through use of cloud technology.”
Schwartz added: “The WisdomTree Cloud Computing ETF targets cloud computing businesses, which we believe are best positioned for high levels of recurring revenue growth and have the potential to scale at a faster rate than traditional tech companies.”
The WisdomTree Cloud Computing ETF will invest in emerging public companies listed on the Nasdaq Stock Market, the New York Stock Exchange, NYSE American or the CBOE Exchange that are primarily involved in providing cloud software and services.
In order to be eligible for inclusion, a company must derive a majority of its revenue from business-oriented software products through a cloud delivery model and new index constituents must have grown annual revenue by at least 15% for each of the last two full fiscal years.