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 1.2 as of late February 2026, making it 20% more volatile than the broader market.

7 Best Cloud Computing ETFs to Buy for 2026

By Scott Levine – Updated Mar 12, 2026 at 11:08 PM EST | Fact-checked by Frank Bass

Key Points

Cloud computing ETFs offer a diversified investment in tech, not picking individual stocks.
The investment in these ETFs hinges on rapid industry growth, projected at $2.4 trillion by 2030.
Key ETFs include First Trust and Global X Cloud Computing, with various expense ratios and assets.

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 like Amazon's (AMZN -0.70%) Amazon Web Services, software platforms such as Salesforce (CRM +2.29%), 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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Seven 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

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NASDAQ: SKYY

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

Today's Change

(2.51%) $3.26

Current Price

$133.03

Key Data Points

Day's Range

$131.05 - $133.86

52wk Range

$103.76 - $143.74

Volume

717.3K

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With about $2.4 billion in net assets, the First Trust Cloud Computing ETF (SKYY +2.51%) 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, like Alphabet (GOOG -1.04%) (GOOGL -1.19%) and IBM (IBM +0.34%), this ETF holds computer networking equipment manufacturer stocks like Arista Networks (ANET +3.57%) and infrastructure-as-a-service (IAAS) and SaaS stocks such as Microsoft (MSFT -0.06%).

Over the 10-year period ending in mid-March 2026, the First Trust Cloud Computing ETF delivered a total return of 318%. The ETF has a 0.60% expense ratio, and it's rebalanced quarterly.

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2. Global X Cloud Computing ETF

NASDAQ: CLOU

Global X Funds - Global X Cloud Computing ETF

Today's Change

(1.64%) $0.37

Current Price

$22.87

Key Data Points

Day's Range

$22.73 - $23.23

52wk Range

$17.52 - $24.32

Volume

147.2K

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Investors looking for a greater growth opportunity will likely be drawn to the Global X Cloud Computing ETF (CLOU +1.64%). Striving to match the performance of the Indxx Global Cloud Computing index, the Global X Cloud Computing ETF had 37 holdings and $211 million in net assets in March 2026.

The fund leans toward more speculative investments, such as two of its five largest positions: Akamai (AKAM +0.70%), which specializes in cloud and cybersecurity solutions, and Twilio (TWLO +2.56%), which offers a cloud communications platform. With a 0.68% expense ratio, this ETF had provided a 34.3% total return from its April 2019 inception through mid-March 2026.

3. WisdomTree Cloud Computing Fund

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NASDAQ: WCLD

WisdomTree Trust - WisdomTree Cloud Computing Fund

Today's Change

(2.10%) $0.62

Current Price

$30.21

Key Data Points

Day's Range

$29.87 - $30.58

52wk Range

$23.89 - $37.12

Volume

505.8K

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NYSEMKT: IGV

iShares Trust - iShares Expanded Tech-Software Sector ETF

Today's Change

(1.65%) $1.53

Current Price

$94.01

Key Data Points

Day's Range

$93.13 - $94.92

52wk Range

$73.93 - $117.99

Volume

11.7M

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Since its launch in July 2001, the iShares Expanded Tech-Software Sector ETF (IGV +1.65%) 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.

Microsoft and Palantir (PLTR -0.39%) represent the two largest positions of the 114 holdings, with a combined weighting of 18%. Other cloud computing leaders, such as Oracle (ORCL +1.25%) and Salesforce, are also prominently featured among the fund's top five largest positions.

For the 10-year period ending in mid-March 2026, the iShares Expanded Tech-Software ETF had soared 356.4%. 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

(1.62%) $0.57

Current Price

$35.67

Key Data Points

Day's Range

$35.47 - $35.90

52wk Range

$26.01 - $35.90

Volume

19.3K

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Another lower-cost option for cloud computing investors is the Fidelity Cloud Computing ETF (FCLD +1.62%), with its 0.39% net expense ratio. With almost $89 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.

Microsoft, Salesforce, and ServiceNow (NOW +2.45%) represent the three largest positions in the 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 +0.16%) and Digital Realty Trust (DLR -1.10%), 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 had risen about 10% through mid-March 2026.

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6. ProShares Ultra Nasdaq Cloud Computing ETF

NASDAQ: SKYU

ProShares Trust - ProShares Ultra Nasdaq Cloud Computing

Today's Change

(5.00%) $1.72

Current Price

$36.16

Key Data Points

Day's Range

$35.65 - $36.19

52wk Range

$22.55 - $45.55

Volume

1.6K

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Unlike the other funds on the list, the ProShares Ultra Nasdaq Cloud Computing ETF (SKYU +5.00%) 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.

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 CT A 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 34.7% return through mid-March 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

(1.41%) $0.44

Current Price

$31.49

Key Data Points

Day's Range

$31.49 - $31.62

52wk Range

$24.72 - $36.60

Volume

5.5K

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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 that will behoove investors to follow. Since cloud computing ETFs often exhibit higher volatility than the S&P 500 -- known as high betas -- investors must remember to 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.

Another practical pearl of wisdom to remember is that even for those bullish on cloud computing ETFs, it's important to be mindful of ensuring that 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.

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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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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.

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 to Buy for 2026

Key Points

Seven best cloud computing ETF investments in 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

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

Strategies for investing in cloud computing ETFs

Future outlook for cloud computing ETFs

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FAQ

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

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Seven 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

7. Themes Cloud Computing ETF

Strategies for investing in cloud computing ETFs

Future outlook for cloud computing ETFs

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

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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?

Key Data Points

Key Data Points

4. iShares Expanded Tech-Software Sector ETF

How to invest in cloud computing using ETFs

Should you invest in cloud computing ETFs?

5. Fidelity Cloud Computing ETF

3. WisdomTree Cloud Computing Fund