The First Trust Cloud Computing ETF (SKYY) is an exchange-traded fund designed to provide exposure to global companies associated with cloud computing and digital infrastructure. The ETF is managed by First Trust Advisors and trades under the ticker SKYY on the Nasdaq.

Classified as a thematic equity ETF, the fund seeks to reflect, before fees and expenses, the performance of the ICE Cloud Computing Index.

The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes companies involved in cloud-computing services, data centers, enterprise software, digital infrastructure, data storage, and technology solutions associated with cloud computing.

Diversification and sector exposure

SKYY provides exposure primarily associated with:

• Cloud computing.
• Enterprise software.
• Digital infrastructure.
• Data centers.
• Semiconductors.
• Artificial intelligence.
• SaaS platforms.
• Global technology companies.

The ETF’s performance is particularly sensitive to global monetary conditions, expectations surrounding technology-sector growth, and investment in computing infrastructure.

Changes in Federal Reserve monetary policy, fluctuations in long-term interest rates, and shifts in demand for digital services may directly affect the fund’s behavior. The ETF may also reflect developments associated with artificial intelligence expansion, data-storage growth, and the digitalization of global businesses.

Structure and costs

SKYY shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. SKYY may distribute income derived from dividends paid by companies held within the portfolio.

Because the ETF maintains concentrated thematic exposure to cloud computing and technology companies, its performance may exhibit elevated sensitivity to growth-oriented equities and the broader global technology sector.

History and evolution of the ETF

The First Trust Cloud Computing ETF was launched in 2011 during a period marked by the expansion of cloud-computing services and growing global investment in digital infrastructure.

Since inception, the fund has reflected movements associated with advances in cloud computing, expansion of enterprise software, and growth in digital services used by businesses and consumers.

In recent years, SKYY has reflected rising demand for artificial intelligence, expansion of data centers, growth in SaaS services, and developments associated with global digitalization and increasing computing infrastructure.

Additional Information

First Trust Cloud Computing ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $2.80 billion.

Over the past 12 months, First Trust Cloud Computing ETF recorded a return of 18.81%, with its price trading between $104.16 and $155.17 during the same period.

The ETF is traded under the ticker SKYY.