An exchange-traded fund (ETF) that is exposed to the cloud computing industry has been launched.
First Trust Global Portfolios in the UK launched the First Trust Cloud Computing Ucits ETF, which tracks the ISE Cloud Computing Index.
The product has a total expense ratio of 0.6% and is available on the London Stock Exchange and the Euronext Amsterdam.
Companies in the index that operate in the cloud computing industry include direct service providers involved in hardware or software and storage, and those involved in the delivery of goods and services that utilise cloud computing technology.
The companies, which have a market capitalisation of at least $100 million, are described as “pure play” and “non-pure play” cloud computing companies, and a third set accounting for 10% of the index are “technology conglomerates, which are large broad-based companies that indirectly utilise or support the use of cloud computing technology.
Gregg Guerin, First Trust senior product specialist said: “Cloud Computing is the simple idea of moving complex computer tasks into shared, decentralised services, enabling people to store and access data from almost any location in the world, which continues to rapidly gain momentum”.
In recent months First Trust Global Portfolios launched a blockchain fund, among others designed to offer innovative ideas.
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