Today Global X added another ETF to its growing thematic ETF lineup—this one focuses on cloud computing technology. The Global X Cloud Computing ETF (CLOU) targets companies that are likely to benefit from the growing adoption and proliferation of cloud computing technology. The impact of cloud computing can be felt as more and more companies are utilizing the technology at a rapid pace to power their core businesses. That’s why Global X ETFs, the New York-based provider of exchange-traded funds, announced today the launch of the 14th fund in its Thematic Growth suite, the Global X Cloud Computing ETF (Nasdaq: CLOU).
Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that:
- license and deliver software over the internet on a subscription basis (SaaS),
- provide a platform for creating software applications which are delivered over the internet (PaaS),
- provide virtualized computing infrastructure over the internet (IaaS),
- own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or
- manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.
Companies included in the index must have a cloud computing-connected primary business based on the provision of software, platform services or infrastructure via the cloud-based subscription; providing server storage space and data centers as a real estate investment trust; or providing software and hardware that supports cloud computing.
Though cloud computing is used in some form by upwards of 90% of companies today, there are indications that the trend is in its early stages, as the majority of today’s IT environment is still non-cloud. There are signs that adoption is ramping up quickly, though, as the average company’s cloud spending has jumped 36% from $1.8 million in 2016 to $2.2 million in 2018.