Investors interest in the tech industry remains red hot. While semiconductor stocks remain bright on their radars, many are also paying close attention to cloud computing exchange-traded funds (ETFs) as a way to broaden their exposure.
Exchange-Traded Fund (ETF)
The cloud represents an increasingly critical component of operations for businesses, and it's a term that many companies are bandying about frequently. It may be challenging for investors to keep track of the nuances related to the cloud. In essence, cloud computing companies provide customers with resources to perform computational operations over the internet.
From companies like Amazon (AMZN +1.40%), which provides infrastructure-as-a-service through Amazon Web Services, to software-as-a-service (SaaS) companies like Salesforce (CRM -0.61%), there are numerous opportunities for cloud-related investments.
Individual companies specializing in cloud computing may appeal to some. Others may be motivated to invest in this burgeoning niche of the tech industry while also mitigating the risks associated with investing in a single company. And still others may be drawn to cloud computing ETFs as a way to diversify their exposure to cloud-based businesses beyond investments in cloud storage or cloud security stocks.
Why invest in cloud computing ETFs?
From the growth of the artificial intelligence (AI) industry to increasing interest in cybersecurity, numerous tailwinds are contributing to the growth of the cloud computing industry. And this growth is expected to continue.
According to business research firm Grand View Research, the global cloud computing market was valued at $752.4 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 20.4%, reaching $2.4 trillion in 2030, up from $943.7 billion in 2025. While some investors may have a single goal motivating them to pick up a position in a cloud-based ETF, there are a variety of benefits:
- Diversification of cloud-oriented stocks
- Access to leading tech stocks
- Potential for strong growth
- Mitigated risk of investing in single companies
- Exposure to innovation
How to invest in cloud computing using ETFs
Before clicking the buy button on one of the best cloud ETFs, investors must perform their due diligence, researching the various options to determine whether the fund's holdings, goals, and expense ratios align with their own interests. Here are the steps to take to invest in a cloud technology ETF:
- Open your brokerage app: Log in to your brokerage account, where you manage your investments.
- Search for the stock: Enter the stock ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select the order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
7 best cloud computing ETF investments in 2025
1. First Trust Cloud Computing ETF
With about $3.1 billion in net assets, the First Trust Cloud Computing ETF (SKYY +1.55%) aims to match the performance of the ISE CTA Cloud Computing index. The index comprises 61 stocks engaged in the cloud computing industry.
In addition to leading platform-as-a-service stocks like Amazon and IBM (IBM -0.81%), the First Trust Cloud Computing ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +3.88%), the fund's largest holding, and SaaS stocks, such as Microsoft (MSFT +0.11%), the ETF's second-largest holding, and infrastructure-as-a-service stocks.
For the 10-year period ending Sept. 8, 2025, the First Trust Cloud Computing ETF had provided a total return of 375%. The ETF has a 0.60% expense ratio, and it's rebalanced quarterly.
2. Global X Cloud Computing ETF
Investors looking for a greater growth opportunity will likely be drawn to the Global X Cloud Computing ETF (CLOU +1.17%). Striving to match the performance of the Indxx Global Cloud Computing index, the Global X Cloud Computing ETF has 37 holdings and $308 million in net assets.
The fund leans toward more speculative investments, such as the two largest positions: Shopify (SHOP +3.34%) which offers e-commerce platforms for online businesses and Snowflake (SNOW +4.49%), which provides a cloud-based platform suited for machine learning analytics. With a 0.68% expense ratio, this ETF provided a 54.6% total return from its inception on April 12, 2019, through Sept. 8, 2025.
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Should I invest in ETFs?
Numerous companies are relying on the cloud to fortify their business, making cloud computing stocks a logical consideration for investors.
Here are some of the potential benefits of an investment in cloud computing ETFs:
- These ETFs offer the potential for strong growth since the cloud computing market is expected to increase substantially over the coming years
- Portfolio diversification.
- Gaining exposure to a diverse assortment of industries that are adopting cloud computing solutions
Of course, there are also risks that investors must acknowledge before buying cloud computing ETFs:
- Should there be a market downturn, companies may curb spending and choose to eschew the adoption of cloud computing solutions.
- A more compelling technology may emerge that makes cloud computing less desirable.
- Cloud computing companies may invest heavily in R&D, risking the growth of profits in the near-term for long-term success.
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