Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the First Trust ISE Cloud Computing Index Fund
With that in mind, let's take a closer look at First Trust ISE Cloud Computing and see what CAPS investors are saying about the ETF right now.
First Trust ISE Cloud Computing facts
|Total Assets||$60.1 million|
|Investment Approach||Seeks results that correspond to an equity index called the ISE Cloud Computing Index, which is designed to track the performance of companies actively involved in the cloud computing industry.|
|1-Month / 3-Month Returns||13.1% / (3.9%)|
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight||
Technology Select Sector SPDR
Vanguard Information Technology
Sources: Morningstar and Motley Fool CAPS.
This past summer, PAJO2011 summed up the opportunity: "Managing IT infrastructure is a significant expense and challenge for small to mid size businesses who cannot justify a dedicated IT staff. Cloud computing may well be the solution to a long term problem of keeping up with the demands of changing technology for small to mid size companies."
While broader technology ETFs like Technology Select Sector SPDR and Vanguard Information Technology have cheaper expense ratios, First Trust ISE Cloud Computing is the first pure ETF play on the cloud computing theme, according to Morningstar.
CAPS member Erjune expands on the outperform argument:
There is literally no place to go but cloud computing. The world's info more than doubles every year. ... By 2015, 20% of information will be touched by cloud services and 10% will be stored on the cloud. The benefits of cloud computing include flexibility, cheaper/less-labor intensive, virtually unlimited storage, minimizes the requirement of an IT Staff, greener, reduces run-time and response time, minimizes infrastructure risks, lowers cost of entry for businesses, and increases the pace of innovation.
It's as simple as this: cloud computing is the next big technological revolution, and an [ETF] tracking that sector is definitely going to outperform the S&P 500.
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