First Trust Global Portfolios has launched the First Trust Cloud Computing Ucits ETF on the London Stock Exchange and Euronext Amsterdam.
The fund tracks the ISE Cloud Computing index, and seeks to generate returns from three related business areas:
- 'Pure Play' companies that are direct servies providers actively suporting and forming cloud technology,
- 'Non Pure Play' copmanies that are providing goods and services supporting the cloud computing space,
- 'Technology Conglomerate' companies that are larger ones active in different areas but that indirectly utilise or support the use of cloud computing technology.
Cloud technology is defined by FTGP as "a configurable method of storing, accessing, and syncing data and software through the internet".
The underlying index is a market capitalisation weighted one. Constituents must be engaged in a business activity supporting or utilising the cloud computing space, be listed on an index eligible global stock exchange, and have a market capitalisation of at least $100m.
The index has a 10% weighting to technology conglomerates. The index weight to non pure play companies is calculated by dividing this constituent group's makret capitalisation by the sum of the pure play and non pure play market capitalisation. The remainder of the index weight is to pure play companies.
Stocks are equally weighted within each of the three classifications and the index is reconstituted and rebalanced semi-annually.
Gregg Guerin, First Trust senior product specialist said: "The fund seeks to offer an efficient and innovative way to capitalise on this growing demand for the global public dloud market. Providing exposure to pure play and non pure play companies, as well as investing in four key technology conglomerate companies, this growing market provides an exciting investment opportunity."
The new fund follows the launch of other thematic ETFs from FTGP, including its Blockchain fund, the First Trust Indxx Innovative Transaction and Process Ucits ETF, the Dow Jones Internet Ucits ETF , and First Trust FactorFX Ucits ETF.
FTGP will host a free webinar on Cloud Computing - the Next Step in Innovation on 19 February at 14:00 GMT, presented by Guerin. Details are available at: https://www.ftglobalportfolios.com/Professional/Webinars.aspx?commid=348982