Glob
a
l X is listing
a
nother
cloud
computing ETF, in wh
a
t is the fourth ETF to bro
a
dly tr
a
ck this sp
a
ce
a
nd the sec
on
d to tr
a
ck specific
a
lly this sp
a
ce (you c
a
n trust First Trust to h
a
ve been first, whose SKYY h
a
s hit the sky with $1.2B under m
a
n
a
gement).
The Global X Cloud Computing ETF (CLOU) will track the Indxx Global Cloud Computing Index, which packages up companies likely to benefit from global cloud computing.
The index defines cloud computing as companies that make buck from any of the following:
license
a
nd deliver softw
a
re over the internet
on
a
subscripti
on
b
a
sis
provide
a
pl
a
tform for cre
a
ting softw
a
re
a
pplic
a
ti
on
s which
a
re delivered over the internet
provide virtu
a
lized computing infr
a
structure over the internet
own
a
nd m
a
n
a
ge f
a
cilities customers use to store d
a
t
a
a
nd servers, including d
a
t
a
center REITs
m
a
nuf
a
cture or distribute infr
a
structure
a
nd/or h
a
rdw
a
re comp
on
ents used in
cloud
a
nd edge computing
a
ctivities,
a
s determined by the Index Provider.
Those that make 50% of their revenue from these five activities are thrown in the index and market weighted. Those that generate less than half the revenue but more than $500M a year from these activities also get thrown in the index, but subject to a 2% weighting cap.
The index rebalances twice a year.
