Cloud computing exchange-traded funds (ETFs) are baskets of stocks that provide investors with diversified exposure to companies operating in the cloud computing industry. Although artificial intelligence (AI) stocks remain one of the hottest niches of the tech sector, many investors are also paying close attention to cloud computing ETFs as a way to broaden their exposure.
Exchange-Traded Fund (ETF)
That is especially the case with the market expected to grow considerably in the coming years. According to research from Grand View Research, the global cloud computing market was valued at $752 billion in 2024 and is projected to reach $2.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.4% from 2025 to 2030.
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 operations over the internet.
From companies like Amazon (AMZN -1.60%), which provides infrastructure-as-a-service through Amazon Web Services, to software-as-a-service (SaaS) companies like Salesforce (CRM -7.07%), 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 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. 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 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 -1.17%) 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
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In addition to leading platform-as-a-service stocks, like Alphabet (GOOG +1.05%) (GOOGL +1.15%) and IBM (IBM -2.89%), this ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +5.21%) and infrastructure-as-a-service (IAAS) and SaaS stocks such as Microsoft (MSFT -1.44%).
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.
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 -2.64%). 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.
NASDAQ: CLOU
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NASDAQ: WCLD
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NYSEMKT: IGV
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Naturally, familiar cloud computing stocks figure prominently in the ETF. Palantir (PLTR -0.25%) 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 -2.05%), 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.
NYSEMKT: FCLD
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Microsoft, Salesforce, and ServiceNow (NOW -3.23%) 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 +2.23%) and Digital Realty Trust (DLR +1.80%) -- 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.
6. ProShares Ultra Nasdaq Cloud Computing ETF
Unlike the other funds on the list, the ProShares Ultra Nasdaq Cloud Computing ETF (SKYU -2.52%) 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.
NASDAQ: SKYU
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This index includes the largest 50 companies by market capitalization for various cloud computing businesses. These include digital security, e-commerce infrastructure, data infrastructure, data architecture, internet infrastructure, and data support.
The ETF has a 0.35% expense ratio. Alphabet is its largest holding, while mobile technology specialist AppLovin (APP +1.51%) and Salesforce round out the top three of 51 holdings.
Should I invest in cloud computing 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:
- Potential for strong growth since the cloud computing market is expected to increase substantially over the coming years
- Portfolio diversification
- 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:
- In a market downturn, companies may curb spending and forego 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 research and development (R&D), risking the growth of profits in the near-term for long-term success.
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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.
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