What happened
According to a recent SEC filing, Flaharty Asset Management, LLC, initiated a new position in the First Trust Cloud Computing ETF (SKYY 0.51%), acquiring 163,815 shares during Q1 2026. The estimated transaction value was $19.1 million, based on the average closing price for the quarter. The position's value at quarter-end was $17.9 million, reflecting price movement over the period.
What else to know
- This new position makes up 2.2% of Flaharty Asset Management, LLC's reported AUM as of March 31, 2026.
- Top holdings after the filing:
- NYSE: MINT: $46.8 million (5.8% of AUM)
- NYSE: JAAA: $38.4 million (4.8% of AUM)
- NASDAQ: FTSL: $35.8 million (4.4% of AUM)
- NYSE: XLF: $31.6 million (3.9% of AUM)
- NYSE: KORP: $31.5 million (3.9% of AUM)
- As of May 4, 2026, SKYY shares were trading at $126.64, up about 18% over the past year -- underperforming the S&P 500 by roughly 10 percentage points, and trailing its Technology category benchmark by nearly 13 percentage points.
ETF overview
| Metric | Value |
|---|---|
| AUM | $2.4 billion |
| Expense ratio | 0.60% |
| Dividend yield | 0.00% |
| One-year total return (as of 5/4/26) | 18.30% |
ETF snapshot
The First Trust Cloud Computing ETF (SKYY) tracks the ISE CTA Cloud Computing Index, offering diversified exposure to companies across the cloud sector.
- Holds equity securities spanning cloud infrastructure, platform, and software providers
- The fund's rules-based approach provides investors with exposure to both established and emerging players in the space
What this transaction means for investors
Flaharty Asset Management's decision to open a fresh $19.1 million position in SKYY is a meaningful signal -- even if it lands outside the firm's top five holdings. This is a sizable new bet on the cloud computing theme from a firm that appears to favor ETF-driven diversification across its portfolio.
SKYY's recent performance hasn’t been so notable. The ETF is up roughly 18% over the past year, but it has lagged the broader S&P 500 by about 10 percentage points and trailed its own Technology category benchmark by nearly 13 points -- a gap that might give some investors pause. That said, cloud computing's long-term growth story remains compelling. Enterprise cloud spending continues to expand globally, driven by AI adoption, digital transformation, and the ongoing migration away from on-premise servers and data centers.
For retail investors, the appeal of a fund like SKYY is straightforward: it’s a diversified, rules-based way to gain exposure to the cloud sector without betting on a single stock. SKYY holds a broad basket of infrastructure, platform, and software names, which can help smooth out the volatility that comes with picking individual cloud winners. It's worth noting, however, that SKYY's 0.60% expense ratio is meaningfully higher than a broad index fund like the Vanguard S&P 500 ETF (VOO +1.47%), which charges just 0.03% -- a real cost consideration for long-term holders who may be weighing a thematic tilt against simpler, cheaper alternatives.
Bottom line: Institutional interest like this is a reminder that even in a sector that's had a bumpy stretch, the long-term thesis around cloud computing continues to attract serious capital.
