First Trust has latched on to cloud computing for its latest thematic ETF, launched this week on the London Stock Exchange.
The First Trust Cloud Computing UCITS ETF (FSKY) comes with a total expense ratio (TER) of 0.6% and will track the ISE Cloud Computing index.
Companies in this index are split into three segments including pure-play service providers for the cloud, non-pure play cloud computing companies where the focus is on companies which exist outside the cloud computing space but provide goods and services and finally 'technology conglomerate cloud computing companies which indirectly utilise and support the use of cloud computing technology.
In order to be included in the index, a security must have a market cap of at least $100m and be listed on an index-eligible global stock exchange. The index is currently made up of 28 companies of which 17 are pure play, seven are non-pure-play and four are conglomerates
Gregg Guerin, senior product specialist at First Trust, said: "Cloud Computing is the simple idea of moving complex computer tasks into shared, decentralised services, enabling people to store and access data from almost any location in the world, which continues to rapidly gain momentum,"
He added that providing exposure to pure-play and non-pure play companies, as well as investing in four key technology conglomerate companies, "creates an exciting investment opportunity."
First Trust has been exploring the opportunities for internet-based ETFs for a while now; last summer, it launched both a blockchain ETF and an internet-themed fund.