>>> Cloud Computing ETF
(CLOU) Hits New 52-Week High
by Sweta Killa
June 1, 2020 https://finance.yahoo.com/news/cloud-computing-etf-clou-hits-134001763.html Cloud Computing ETF (CLOU)
Hits New 52-Week High
For investors seeking momentum, Global X Cloud Computing ETF CLOU is probably on radar. The fund just hit a 52-week high and is up 61.4% from its 52-week low price of $12.36/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
CLOU in Focus
This fund seeks to invest in companies positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data center real estate investment trusts, and cloud and edge computing infrastructure and hardware. CLOU charges 68 bps in annual fees (see: all the Technology ETFs here).
Why the Move?
The cloud computing corner of the broad stock market has been an area to watch lately, given rising demand. The area is growing exponentially buoyed by stay-at-home orders that have boosted demand for work and entertainment from home. Even if the economy reopens, the trend is likely to continue given the change in consumer behavior. Cloud computing has encouraged video conferencing, gaming, e-commerce, remote project collaboration, online classes and other programs.
More Gains Ahead?
It seems that CLOU might remain strong given a high weighted alpha of 36.2 but could be a risky choice as depicted by 20-day volatility of 30.6%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.