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.

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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

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In addition to leading platform-as-a-service stocks, like Alphabet (GOOG +1.39%) (GOOGL +1.50%) and IBM (IBM -0.87%), this ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +2.50%) and infrastructure-as-a-service (IAAS) and SaaS stocks such as Microsoft (MSFT -2.23%).

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

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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

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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

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Microsoft, Salesforce, and ServiceNow (NOW -1.18%) 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 +2.78%) 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

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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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Cloud computing ETF FAQ

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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.

TMFProudMonkey

@TMFProudMonkey

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.

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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.

Should you 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.

7 Best Cloud Computing ETFs to Buy for 2026

Key Points

Key Data Points

2. Global X Cloud Computing ETF

Key Data Points

3. WisdomTree Cloud Computing Fund

Key Data Points

Key Data Points

5. Fidelity Cloud Computing ETF

Key Data Points

6. ProShares Ultra Nasdaq Cloud Computing ETF

Key Data Points

7. Themes Cloud Computing ETF

Key Data Points

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Cloud computing ETF FAQ

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

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

How do cloud computing ETFs compare to individual cloud stocks?

How do cloud computing ETFs compare to individual cloud stocks?

Are cloud computing ETFs suitable for long-term investing?

Are cloud computing ETFs suitable for long-term investing?

What to look for when choosing a cloud computing ETF?

What to look for when choosing a cloud computing ETF?

How are cloud computing ETFs taxed?

How are cloud computing ETFs taxed?

Can cloud computing ETFs provide dividend income?

Can cloud computing ETFs provide dividend income?

About the Author

Stocks Mentioned

Our Guides

Premium Investing Services

Cloud computing ETF FAQ

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

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

How do cloud computing ETFs compare to individual cloud stocks?

How do cloud computing ETFs compare to individual cloud stocks?

Are cloud computing ETFs suitable for long-term investing?

Are cloud computing ETFs suitable for long-term investing?

What to look for when choosing a cloud computing ETF?

What to look for when choosing a cloud computing ETF?

How are cloud computing ETFs taxed?

How are cloud computing ETFs taxed?

Can cloud computing ETFs provide dividend income?

Can cloud computing ETFs provide dividend income?

Best Quantum Computing Stocks to Buy in 2026 and How to Invest in Them

The Best Quantum Computing ETF to Buy in 2026 and How to Invest

Best Edge Computing Stocks to Buy in 2026 and How to Invest in Them

Best AI Stocks to Buy in 2026 and How to Invest in Them

Future outlook for cloud computing ETFs

Related investing topics

FAQ

7 best cloud computing ETF investments in 2026

1. First Trust Cloud Computing ETF

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

2. Global X Cloud Computing ETF

3. WisdomTree Cloud Computing Fund

4. iShares Expanded Tech-Software Sector ETF

6. ProShares Ultra Nasdaq Cloud Computing ETF

7. Themes Cloud Computing ETF

How to invest in cloud computing using ETFs

Should you invest in cloud computing ETFs?

5. Fidelity Cloud Computing ETF