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 should I 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.

How do cloud computing ETFs perform during market volatility?

Most cloud computing ETFs exhibit greater volatility than the S&P 500. During periods of market volatility, investors can expect the ETFs to rise and fall sharply. The First Trust Cloud Computing ETF, for example, had a beta of 1.24 as of early August 2026, making it 24% more volatile than the broader market.

7 Best Cloud Computing ETFs for 2026 and How to Invest

By Scott Levine – Updated Aug 18, 2026 at 10:44 AM EST | Fact-checked by Margo Winton Parodi

+Fool.comon

Key Points

Cloud ETFs offer investors exposure to leading tech firms and growth trends in digital services.
The global cloud market is expected to reach $2.4 trillion by 2030, growing from $752 billion in 2024.
Investing in cloud ETFs allows diversification without the risk of selecting individual stocks.

Cloud computing exchange-traded funds (ETFs) give investors diversified exposure to companies powering one of the most important layers of modern technology. While artificial intelligence grabs headlines, cloud infrastructure and software remain the backbone that enables AI, cybersecurity, and digital services to operate at scale, and the market continues to grow rapidly. 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 such as Amazon's (AMZN -0.57%) Amazon Web Services and software platforms such as Salesforce (CRM +1.82%). 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 top cloud computing ETF investments for 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

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NASDAQ: SKYY

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

Today's Change

(1.14%) $1.82

Current Price

$161.23

Key Data Points

AUM

$3.3B

Expense Ratio

0.60%

Top Holdings

4.58%

NTNX

4.22%

ANET

3.81%

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With about $3.38 billion in net assets as of mid-August 2026, the First Trust Cloud Computing ETF (SKYY +1.14%) aims to match the performance of the ISE CTA Cloud Computing index. The index comprises 63 stocks engaged in the cloud computing industry.

In addition to leading platform-as-a-service stocks, such as Alphabet (GOOG +1.05%) (GOOGL +1.22%) and IBM (IBM +0.85%), this ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +2.67%) and infrastructure-as-a-service (IAAS) and SaaS stocks such as Microsoft (MSFT +0.43%).

Over the 10-year period ending Aug. 8, 2026, the First Trust Cloud Computing ETF delivered a total return of 386%. The ETF has a 0.60% expense ratio, and it's rebalanced quarterly.

2. Global X Cloud Computing ETF

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NASDAQ: CLOU

Global X Funds - Global X Cloud Computing ETF

Today's Change

(1.37%) $0.38

Current Price

$28.05

Key Data Points

AUM

$366M

Expense Ratio

0.68%

Top Holdings

SNOW

7.00%

PAYC

5.32%

DDOG

5.23%

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Investors seeking greater growth opportunities will likely be drawn to the Global X Cloud Computing ETF (CLOU +1.37%). Striving to match the performance of the Indxx Global Cloud Computing index, this ETF had 38 holdings and $362 million in net assets in August 2026.

The fund leans toward more speculative investments, such as two of its five largest positions: Snowflake (SNOW +3.58%), which operates a cloud-based platform for companies to store and analyze data, and Twilio (TWLO +2.46%), which offers a cloud communications platform. With a 0.68% expense ratio, this ETF had provided an 85% total return from its April 2019 inception through mid-August 2026.

3. WisdomTree Cloud Computing Fund

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NASDAQ: WCLD

WisdomTree Trust - WisdomTree Cloud Computing Fund

Today's Change

(1.40%) $0.56

Current Price

$40.69

Key Data Points

AUM

$299M

Expense Ratio

0.45%

Top Holdings

DOCN

3.80%

DDOG

2.68%

TWLO

2.67%

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The WisdomTree Cloud Computing Fund (WCLD +1.40%) 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."

While the WisdomTree Cloud Computing Fund holds industrials, financials, and healthcare stocks, its information technology holdings account for the lion's share -- about 93.8%. Cloud-based cybersecurity specialist Palo Alto Networks (PANW +2.38%) is the ETF's largest position, while cloud infrastructure provider JFrog (FROG +2.69%) and cybersecurity stock Crowdstrike (CRWD +0.85%) are other prominent holdings.

From its inception in September 2019 through Aug. 8, 2026, the WisdomTree ETF, which has a moderately low 0.45% expense ratio, had provided a total return of about 57%.

4. iShares Expanded Tech-Software Sector ETF

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NYSEMKT: IGV

iShares Trust - iShares Expanded Tech-Software Sector ETF

Today's Change

(1.43%) $1.46

Current Price

$103.37

Key Data Points

AUM

$14B

Dividend Yield

0.02%

Expense Ratio

0.38%

Top Holdings

PLTR

10.37%

PANW

9.60%

MSFT

9.40%

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Since its launch in July 2001, the iShares Expanded Tech-Software Sector ETF (IGV +1.43%) has enabled investors to gain exposure to the software industry, interactive home entertainment, and interactive media stocks. For those seeking broad exposure to cloud stocks, this ETF is worth further investigation.

Palo Alto Networks and Palantir Technologies (PLTR +3.44%) represent the two largest positions of the 106 holdings, with a combined weighting of 20.6%. Other cloud computing leaders, such as Microsoft, Salesforce, and Crowdstrike are also prominently featured among the fund's top 10 largest positions.

For the 10-year period ending Aug. 8, 2026, the iShares Expanded Tech-Software ETF had soared 366.8%. Investors looking for low management fees will find the ETF appealing, given its 0.38% expense ratio.

5. Fidelity Cloud Computing ETF

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NYSEMKT: FCLD

Fidelity Covington Trust - Fidelity Cloud Computing ETF

Today's Change

(0.08%) $0.04

Current Price

$43.62

Key Data Points

AUM

$115M

Dividend Yield

0.01%

Expense Ratio

0.39%

Top Holdings

MSFT

4.79%

CRM

4.63%

SNOW

4.37%

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Another lower-cost option for cloud computing investors is the Fidelity Cloud Computing ETF (FCLD +0.08%), which has a 0.39% net expense ratio. With $114.9 million in net assets as of July 31, 2026, this ETF aims to match the performance of the Fidelity Cloud Computing index, which tracks companies that facilitate the adoption of cloud computing.

Microsoft, Salesforce, and Western Digital (WDC -2.05%) represent three of the largest positions in the ETF, which has 63 holdings. In addition to cloud computing specialists, the fund includes data center real estate investment trusts (REITs), such as Equinix (EQIX -1.59%) and Digital Realty Trust (DLR -1.89%), that provide the physical infrastructure for cloud computing, as well as 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 October 2021 inception, its value has risen about 70%.

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6. ProShares Ultra Nasdaq Cloud Computing ETF

NASDAQ: SKYU

ProShares Trust - ProShares Ultra Nasdaq Cloud Computing

Today's Change

(2.24%) $1.11

Current Price

$50.87

Key Data Points

AUM

$6.2M

Dividend Yield

0.59%

Expense Ratio

5.04%

Top Holdings

2.99%

NTNX

2.76%

ANET

2.49%

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Unlike the other funds on the list, the ProShares Ultra Nasdaq Cloud Computing ETF (SKYU +2.24%) is a leveraged ETF, which means it carries a higher degree of risk than the other ETFs on this list. With that greater risk, however, comes the potential for a greater reward.

The ProShares Ultra Nasdaq Cloud Computing ETF aims to produce daily results (before fees and expenses) that are twice the daily performance of the ISE CTA Cloud Computing index, which comprises companies primarily engaged in the cloud computing industry.

The ETF doesn't provide a long history to gauge its performance. Since its January 2021 inception, the fund posted an 18.2% return through Aug. 8, 2026.

For investors looking to keep costs down, the ETF may not be the best choice, as it has a net expense ratio of 0.95%.

7. Themes Cloud Computing ETF

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NASDAQ: CLOD

Themes ETF Trust - Themes Cloud Computing ETF

Today's Change

(1.27%) $0.43

Current Price

$34.25

Key Data Points

AUM

$2.0M

Dividend Yield

1.39%

Expense Ratio

0.35%

Top Holdings

SAP.DE

5.76%

MSFT

5.24%

CRM

5.15%

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The youngest ETF on the list, the Themes Cloud Computing ETF (CLOD +1.27%), first offered an investment opportunity in December 2023. The Themes Cloud Computing ETF aims to deliver results that generally track the price and yield performance (before fees and expenses) of the Solactive Cloud Computing index.

This index includes the 50 largest companies by market capitalization across various cloud computing businesses. These include digital security, e-commerce infrastructure, data infrastructure, data architecture, internet infrastructure, and data support.

The ETF has an expense ratio of 0.35%. Cloud services provider SAP (SAP +0.73%) is the fund's largest holding, while Microsoft and Palo Alto Networks rounded out the top three in mid-August 2026.

How to buy cloud computing ETFs

Before clicking the buy button on one of the best cloud ETFs, investors must conduct their due diligence by 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 account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker into the search bar to bring up the ETF’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 ETF.
Select 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.

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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 potential benefits of an investment in cloud computing ETFs.

Strong growth potential, as the cloud computing market is expected to grow 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 delay adopting cloud computing solutions.
A more compelling technology may emerge, making cloud computing less desirable.
Cloud computing companies may invest heavily in research and development (R&D), risking near-term profit growth in pursuit of long-term success.

Strategies for investing in cloud computing ETFs

While cloud computing ETFs may be a relatively new investment option, there are some tried-and-true strategies for investors. Since cloud computing ETFs often exhibit higher volatility than the S&P 500 -- known as high betas -- investors must remain calm during periods of volatility. A wild swing in the ETF's price is unlikely to indicate that it's time to move the ETF out of one's portfolio.

Also, remember that even for those bullish on cloud computing ETFs, it's important to ensure adequate portfolio diversification. If a cloud computing ETF represents a heavy weighting among one's holdings, it may be time to trim the position and reallocate some of the available capital.

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, as well as machine learning and big data analytics, is continuing to grow to confirm that the cloud computing industry will continue to flourish.

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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, Amazon, Arista Networks, CrowdStrike, Digital Realty Trust, Equinix, Fastly, International Business Machines, Microsoft, Oracle, Palantir Technologies, Salesforce, ServiceNow, Twilio, and Wix.com. The Motley Fool recommends Akamai Technologies and Samsara. The Motley Fool has a disclosure policy.

7 Best Cloud Computing ETFs for 2026 and How to Invest

Key Points

7 top cloud computing ETF investments for 2026

1. First Trust Cloud Computing ETF

Key Data Points

2. Global X Cloud Computing ETF

Key Data Points

3. WisdomTree Cloud Computing Fund

Key Data Points

4. iShares Expanded Tech-Software Sector ETF

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

How to buy cloud computing ETFs

Should you invest in cloud computing ETFs?

Strategies for investing in cloud computing ETFs

Future outlook for cloud computing ETFs

Related investing topics

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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 should I look for when choosing a cloud computing ETF?

What should I 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?

How do cloud computing ETFs perform during market volatility?

How do cloud computing ETFs perform during market volatility?

About the Author

Read Next

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7 top cloud computing ETF investments for 2026

1. First Trust Cloud Computing ETF

Key Data Points

2. Global X Cloud Computing ETF

Key Data Points

3. WisdomTree Cloud Computing Fund

4. iShares Expanded Tech-Software Sector ETF

Key Data Points

Key Data Points

7. Themes Cloud Computing ETF

Should you invest in cloud computing ETFs?

Strategies for investing in cloud computing ETFs

Future outlook for cloud computing ETFs

9 Best Quantum Computing Stocks for 2026 and How to Invest

3 Best Quantum Computing ETFs for 2026 and How to Invest

5 Best Edge Computing Stocks for 2026 and How to Invest

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

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 should I look for when choosing a cloud computing ETF?

What should I 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?

How do cloud computing ETFs perform during market volatility?

How do cloud computing ETFs perform during market volatility?

Key Data Points

5. Fidelity Cloud Computing ETF