New Listing

Global X lists cloud computing ETF

David Tuckwell

shape

Glob

a

l X is listing 

a

nother 

cloud

 computing ETF, in wh

a

t is the fourth ETF to bro

a

dly tr

a

ck this sp

a

ce 

a

nd the sec

on

d to tr

a

ck specific

a

lly this sp

a

ce (you c

a

n trust First Trust to h

a

ve been first, whose SKYY h

a

s hit the sky with $1.2B under m

a

n

a

gement).

The Global X Cloud Computing ETF (CLOU) will track the Indxx GlobaCloud Computing Index, which packages up companies likely to benefit from globacloud computing.

The index defines cloud computing as companies that make buck from any of the following:

  1. license 

    a

    nd deliver softw

    a

    re over the internet 

    on

    a

     subscripti

    on

     b

    a

    sis

  2. provide 

    a

     pl

    a

    tform for cre

    a

    ting softw

    a

    re 

    a

    pplic

    a

    ti

    on

    s which 

    a

    re delivered over the internet

  3. provide virtu

    a

    lized computing infr

    a

    structure over the internet

  4. own 

    a

    nd m

    a

    n

    a

    ge f

    a

    cilities customers use to store d

    a

    t

    a

    a

    nd servers, including d

    a

    t

    a

     center REITs

  5. m

    a

    nuf

    a

    cture or distribute infr

    a

    structure 

    a

    nd/or h

    a

    rdw

    a

    re comp

    on

    ents used in 

    cloud

    a

    nd edge computing 

    a

    ctivities, 

    a

    s determined by the Index Provider.

Those that make 50% of their revenue from these five activities are thrown in the index and market weighted. Those that generate less than half the revenue but more than $500M a year from these activities also get thrown in the index, but subject to a 2% weighting cap.

The index rebalances twice a year.

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