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 Global X Cloud Computing ETF, for example, had a beta of 1.1 as of early June 2026, making it 10% more volatile than the broader market.

7 Best Cloud Computing ETFs for 2026 and How to Invest

By Scott Levine – Updated Jun 16, 2026 at 12:11 PM EST | Fact-checked by Margo Winton Parodi

Key Points

Cloud computing ETFs offer diversified investment in tech, reducing risk by not relying on a single company.
These ETFs target rapid market growth, projected to swell from $752 billion in 2024 to $2.4 trillion by 2030.
Top cloud ETFs provide access to various cloud sectors and companies, aiding long-term investment strategies.

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 enables AI, cybersecurity, and digital services to work at scale, and the market is still growing 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 +3.01%) Amazon Web Services and software platforms such as Salesforce (CRM -2.25%). 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

(-0.03%) $-0.04

Current Price

$131.88

Key Data Points

Day's Range

$129.43 - $132.51

52wk Range

$103.76 - $155.76

Volume

485.2K

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With about $2.9 billion in net assets as of mid-June 2026, the First Trust Cloud Computing ETF (SKYY -0.03%) aims to match the performance of the ISE CTA Cloud Computing index. The index comprises 62 stocks engaged in the cloud computing industry.

In addition to leading platform-as-a-service stocks, like Alphabet (GOOG +1.58%) (GOOGL +1.29%) and IBM (IBM -4.78%), this ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +2.94%) and infrastructure-as-a-service (IAAS) and SaaS stocks such as Microsoft (MSFT +0.19%).

Over the 10-year period ending in mid-June 2026, the First Trust Cloud Computing ETF delivered a total return of 362%. 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

(-1.05%) $-0.23

Current Price

$21.75

Key Data Points

Day's Range

$21.35 - $21.95

52wk Range

$17.52 - $26.44

Volume

136.7K

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Investors seeking greater growth opportunities will likely be drawn to the Global X Cloud Computing ETF (CLOU -1.05%). Striving to match the performance of the Indxx Global Cloud Computing index, this ETF had 38 holdings and $249 million in net assets in June 2026.

The fund leans toward more speculative investments, such as two of its five largest positions: Akamai (AKAM -2.51%), which specializes in cloud and cybersecurity solutions, and Twilio (TWLO -1.17%), which offers a cloud communications platform. With a 0.68% expense ratio, this ETF had provided a 32.3% total return from its April 2019 inception through late March 2026.

3. WisdomTree Cloud Computing Fund

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NASDAQ: WCLD

WisdomTree Trust - WisdomTree Cloud Computing Fund

Today's Change

(-0.24%) $-0.07

Current Price

$29.55

Key Data Points

Day's Range

$28.70 - $29.69

52wk Range

$23.89 - $36.98

Volume

1.4M

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The WisdomTree Cloud Computing Fund (WCLD -0.24%) 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 94.5%. Cloud infrastructure and software provider DigitalOcean (DOCN -2.55%)is the ETF's largest position, while cloud infrastructure provider JFrog (FROG +1.68%) and analytics solutions specialist Datadog (DDOG -1.66%) are other prominent holdings.

From its inception in September 2019 through May 31, 2026, the WisdomTree ETF, which has a moderately low 0.45% expense ratio, had provided a total return of 31.5%.

4. iShares Expanded Tech-Software Sector ETF

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NYSEMKT: IGV

iShares Trust - iShares Expanded Tech-Software Sector ETF

Today's Change

(-0.08%) $-0.07

Current Price

$89.09

Key Data Points

Day's Range

$87.30 - $89.56

52wk Range

$73.93 - $117.99

Volume

24.3M

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Since its launch in July 2001, the iShares Expanded Tech-Software Sector ETF (IGV -0.08%) has enabled investors to gain exposure to the software industry, as well as interactive home entertainment and interactive media stocks. For those seeking broad exposure to cloud stocks, this ETF is worth further investigation.

Oracle (ORCL +0.60%) and Palo Alto Networks (PANW +2.00%) represent the two largest positions of the 111 holdings, with a combined weighting of 17.7%. Other cloud computing leaders, such as Microsoft and Salesforce, are also prominently featured among the fund's top 10 largest positions.

For the 10-year period ending March 31, 2026, the iShares Expanded Tech-Software ETF had soared 301.6%. Investors looking for low management fees will find the ETF appealing, given its 0.39% expense ratio.

5. Fidelity Cloud Computing ETF

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NYSEMKT: FCLD

Fidelity Covington Trust - Fidelity Cloud Computing ETF

Today's Change

(1.34%) $0.51

Current Price

$38.44

Key Data Points

Day's Range

$38.14 - $38.64

52wk Range

$26.01 - $41.71

Volume

17.9K

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Another lower-cost option for cloud computing investors is the Fidelity Cloud Computing ETF (FCLD +1.34%), which has a 0.39% net expense ratio. With $109 million in net assets, this ETF aims to match the performance of the Fidelity Cloud Computing index, which tracks companies that facilitate the adoption of cloud computing.

Data storage specialists Sandisk (SNDK +11.54%), Seagate Technology (STX +0.54%), and Western Digital (WDC +4.89%) represent three of the largest positions in the ETF, which has 52 holdings. In addition to cloud computing specialists, the fund includes data center real estate investment trusts (REITs), such as Equinix (EQIX +0.32%) and Digital Realty Trust (DLR +0.57%), 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 October 2021 inception, its value has risen about 53%.

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6. ProShares Ultra Nasdaq Cloud Computing ETF

NASDAQ: SKYU

ProShares Trust - ProShares Ultra Nasdaq Cloud Computing

Today's Change

(-0.08%) $-0.03

Current Price

$34.83

Key Data Points

Day's Range

$34.83 - $34.97

52wk Range

$22.55 - $49.14

Volume

493.2

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Unlike the other funds on the list, the ProShares Ultra Nasdaq Cloud Computing ETF (SKYU -0.08%) 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 is composed of companies largely involved 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 a negative 5.7% return through the end of April 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

(-0.02%) $-0.01

Current Price

$30.37

Key Data Points

Day's Range

$30.19 - $30.37

52wk Range

$24.72 - $36.60

Volume

193

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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 for long-term success.

Strategies for investing in cloud computing ETFs

While cloud computing ETFs may represent a somewhat newer 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 will likely not be an indication 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 one has 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 is continuing to grow, as well as machine learning and big data analytics, to confirm that the cloud computing industry will continue flourishing.

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FAQ

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.

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@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