How do cloud computing ETFs perform compared to traditional tech ETFs?

In general, broad tech ETFs, such as the Vanguard Information Technology ETF (NYSEMKT:VGT) and Technology Select Sector SPDR Fund (NYSEMKT:XLK), have outperformed cloud computing ETFs.

How do cloud computing ETFs compare to individual cloud stocks?

It's difficult to say categorically how well cloud computing ETFs have performed compared to individual cloud stocks. Some cloud stocks have provided sizable returns, while others have underperformed the market.

Are cloud computing ETFs suitable for long-term investing?

Long-term investors would certainly benefit from cloud computing ETFs. It's still early innings for the cloud computing industry, which is expected to grow considerably over the coming years. For those willing to ride out near-term volatility, the rewards associated with buying cloud computing ETFs may be substantial.

What to look for when choosing a cloud computing ETF?

When considering a cloud computing ETF, investors should ensure that the fund's stated goals align with their own goals. For example, if broad exposure to the industry is a priority, investors should seek an ETF with a sizable number of holdings.

How are cloud computing ETFs taxed?

Cloud computing ETFs are taxed similarly to stocks. Investors must pay capital gains taxes when cloud computing ETFs are sold for a profit.

Can cloud computing ETFs provide dividend income?

It's uncommon for cloud computing ETFs to provide dividend income. Instead of passive income, these ETFs are better suited for investors seeking strong growth opportunities.

7 Best Cloud Computing ETFs to Buy for 2026

By Scott Levine – Updated Jan 26, 2026 at 4:57 PM EST | Fact-checked by Frank Bass

Key Points

Cloud computing ETFs offer diversified exposure to a rapidly growing sector.
Investing in these ETFs mitigates risks versus investing in single cloud companies.
Research the holdings and expense ratios of ETFs to align with personal investment goals.

Cloud computing exchange-traded funds (ETFs) give investors diversified exposure to companies powering one of the most important layers of modern tech. While artificial intelligence grabs headlines, cloud infrastructure and software remain the backbone that makes AI, cybersecurity, and digital services work at scale, and the market is still growing fast. The global cloud computing market was valued at $752 billion in 2024 and is projected to reach $2.4 trillion by 2030, according to Grand View Research.

Cloud computing enables businesses to store data, run applications, and manage operations over the internet. That ecosystem spans infrastructure leaders like Amazon Web Services, software platforms such as Salesforce, and many firms in between. Rather than betting on a single stock, cloud computing ETFs bundle dozens of these companies into one investment.

For investors, that means instant diversification, access to leading tech innovators, and exposure to long-term growth trends, without the added risk of picking individual winners. Cloud ETFs can be an efficient way to participate in ongoing digital transformation while spreading risk across the broader cloud landscape.

7 best cloud computing ETF investments in 2026

Offering low fees and instant diversification for your portfolio, here are the seven best cloud computing ETF investments in 2026, along with their holdings, company goals, and expense ratios.

1. First Trust Cloud Computing ETF

With about $3.2 billion in net assets, the First Trust Cloud Computing ETF (SKYY -1.57%) aims to match the performance of the ISE CTA Cloud Computing index. The index comprises 64 stocks engaged in the cloud computing industry.

NASDAQ: SKYY

First Trust Exchange-Traded Fund II - First Trust Cloud Computing ETF

Today's Change

(-1.57%) $-1.75

Current Price

$109.65

Key Data Points

Day's Range

$107.31 - $109.72

52wk Range

$85.38 - $143.74

Volume

140K

In addition to leading platform-as-a-service stocks, like Alphabet (GOOG +1.49%) (GOOGL +1.50%) and IBM (IBM -0.87%), this ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +2.40%) and infrastructure-as-a-service (IAAS) and SaaS stocks such as Microsoft (MSFT -2.17%).

For the 10-year period ending Dec. 11, 2025, the First Trust Cloud Computing ETF had provided a total return of 361%. The ETF has a 0.60% expense ratio, and it's rebalanced quarterly.

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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 -1.31%). Striving to match the performance of the Indxx Global Cloud Computing index, the Global X Cloud Computing ETF had 37 holdings and $274 million in net assets in December 2025.

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NASDAQ: CLOU

Global X Funds - Global X Cloud Computing ETF

Today's Change

(-1.31%) $-0.25

Current Price

$18.76

Key Data Points

Day's Range

$18.30 - $18.77

52wk Range

$17.73 - $24.32

Volume

120K

The fund leans toward more speculative investments, such as two of its five largest positions: Shopify (SHOP -4.13%), which offers e-commerce platforms for online businesses, and Salesforce. With a 0.68% expense ratio, this ETF provided a 98.2% total return from its inception on April 12, 2019, through Dec. 11, 2025.

3. WisdomTree Cloud Computing Fund

The WisdomTree Cloud Computing Fund (WCLD -2.01%) represents another stellar opportunity for those seeking high growth potential. The fund strives to match the performance of the BVP Nasdaq Emerging Cloud index, which WisdomTree characterizes as an index of "emerging public companies focused on delivering cloud-based software to customers."

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NASDAQ: WCLD

WisdomTree Trust - WisdomTree Cloud Computing Fund

Today's Change

(-2.01%) $-0.56

Current Price

$27.28

Key Data Points

Day's Range

$26.53 - $27.28

52wk Range

$25.19 - $37.12

Volume

759K

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NYSEMKT: IGV

iShares Trust - iShares Expanded Tech-Software Sector ETF

Today's Change

(-1.25%) $-1.03

Current Price

$81.57

Key Data Points

Day's Range

$80.00 - $81.63

52wk Range

$76.25 - $117.99

Volume

25M

Naturally, familiar cloud computing stocks figure prominently in the ETF. Palantir (PLTR +0.92%) and Microsoft, for example, represent the two largest positions of the 110 holdings, with a combined weighting of more than 17%. Other cloud computing leaders, such as Oracle (NASDAQ:ORCL) and Salesforce, are also prominently featured among the fund's top five largest positions.

For the 10-year period ending Dec. 11, 2025, the iShares Expanded Tech-Software ETF had soared 440.7%. Those looking for low management fees will find the ETF even more appealing, given its 0.39% expense ratio.

5. Fidelity Cloud Computing ETF

Another lower-cost option for cloud computing investors is the Fidelity Cloud Computing ETF (FCLD -1.94%), with its 0.40% net expense ratio. With almost $88 million in net assets, this ETF aims to match the performance of the Fidelity Cloud Computing index -- an index of companies facilitating the adoption of cloud computing.

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NYSEMKT: FCLD

Fidelity Covington Trust - Fidelity Cloud Computing ETF

Today's Change

(-1.94%) $-0.55

Current Price

$27.85

Key Data Points

Day's Range

$27.60 - $27.88

52wk Range

$20.00 - $31.93

Volume

33K

Microsoft, Salesforce, and ServiceNow (NOW -1.16%) represent the three largest positions in this ETF, which has 53 holdings. In addition to cloud computing specialists, the fund includes data center real estate investment trusts (REITs), such as Equinix (EQIX +2.77%) and Digital Realty Trust (DLR +0.43%) -- companies that provide the physical infrastructure for cloud computing -- and other cloud-related stocks.

The ETF doesn't have a long history, so it's important to take its performance with a grain of salt. Since the fund's inception in October 2021, its value had risen about 21% through Dec. 11, 2025.

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6. ProShares Ultra Nasdaq Cloud Computing ETF

Unlike the other funds on the list, the ProShares Ultra Nasdaq Cloud Computing ETF (SKYU -3.14%) is a leveraged ETF, so it represents a higher degree of risk than the other ETFs on this list. With that greater risk, however, comes the potential for a greater reward.

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NASDAQ: SKYU

ProShares Trust - ProShares Ultra Nasdaq Cloud Computing

Today's Change

(-3.14%) $-0.82

Current Price

$25.42

Key Data Points

Day's Range

$24.88 - $25.42

52wk Range

$17.38 - $45.55

Volume

3.3K

The stated goal of the ProShares Ultra Nasdaq Cloud Computing ETF is to produce daily results (before fees and expenses) that are 2 times the daily performance of the ISE CT A Cloud Computing index -- an index composed of companies largely involved in the cloud computing industry.

Available to investors since early 2021, the ETF doesn't provide a long history to gauge its performance. Nonetheless, since its inception in January 2021, the ProShares Ultra Nasdaq Cloud Computing ETF had provided a negative 1.4% return through Dec. 11, 2025.

For investors who want to keep costs down, the ProShares Ultra Nasdaq Cloud Computing ETF may not be the best choice since it has a net expense ratio of 0.95%.

7. Themes Cloud Computing ETF

The youngest ETF on the list, the Themes Cloud Computing ETF (CLOD -1.28%) first presented an investment opportunity for investors in December 2023. The Themes Cloud Computing ETF attempts to provide results that generally correspond to the price and yield performance (before fees and expenses) of the Solactive Cloud Computing index.

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NASDAQ: CLOD

Themes ETF Trust - Themes Cloud Computing ETF

Today's Change

(-1.28%) $-0.34

Current Price

$26.45

Key Data Points

Day's Range

$26.14 - $26.45

52wk Range

$24.65 - $36.60

Volume

714

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Future outlook for cloud computing ETFs

With the rapidly escalating adoption of AI computing occurring among various industries, cloud computing infrastructure will certainly remain in high demand. Investors should look for signs that the AI industry is continuing to grow as well as machine learning and big data analytics to confirm that the cloud computing industry is proceeding to flourish.

FAQ

Cloud computing ETF FAQ

About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Arista Networks, Bill Holdings, Digital Realty Trust, Equinix, International Business Machines, Microsoft, MongoDB, Palantir Technologies, ServiceNow, and Shopify. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.