Cloud computing is one of the hottest tech market trends alongside artificial intelligence. It’s a big business with a good use case for both businesses and consumers. So, naturally, some exchange-traded funds, or ETFs, have sprung up to give investors a way to bet on the shift of computing dollars away from servers that companies manage in-house to hardware and software that’s centrally managed by third-party administrators to save money and add flexibility.
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That said, 2025 hasn’t been kind to cloud ETFs. Most funds are clocking double-digit losses, which may give some investors pause, but it needn’t deter you. Investing is a long game. Short-term volatility should not drive your investment decisions. If anything, a decline like this could present discount bargains in the typically overpriced tech sector.
However, there is one element of these cloud ETFs that should give you pause: low trading volume. Unlike mutual funds, which are redeemed through the issuer, you need another investor to play counterparty to your ETF trade. If no one is willing to buy, you may not be able to sell — or may have to accept a lower price to offload your shares. So keep an eye on each fund’s trading volume before investing.
The list of cloud-specialized ETFs is short, but with tech giants like Amazon.com Inc. (ticker: AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOG, GOOGL) emerging as top cloud vendors, investors with a casual interest can get some exposure in broader technology funds or even S&P 500 index funds. But for those who want to put a slice of their money behind cloud computing more directly, these are some of the top choices:
| CLOUD ETF | EXPENSE RATIO |
| iShares Future Cloud 5G and Tech ETF (IDAT) | 0.47% |
| First Trust Cloud Computing ETF (SKYY) | 0.6% |
| Global X Cloud Computing ETF (CLOU) | 0.68% |
| Fidelity Cloud Computing ETF (FCLD) | 0.4% |
| Abacus FCF Innovation Leaders ETF (ABOT) | 0.39% |
iShares Future Cloud 5G and Tech ETF (IDAT)
IDAT tracks an index of companies that provide products, services and tech related to cloud computing and 5G. Unlike other funds on this list, which are almost entirely North America-based, IDAT’s index takes a global view by looking for companies in both developed and emerging markets.
While it is still nearly three-quarters U.S.-based, you’ll also find exposure to parts of Europe and Asia in this ETF. It is by and large an information technology fund, but nearly 10% of the fund is in real estate and communication each, with token representation in materials and industrials, too.
As with the tech sector at large, IDAT is struggling year to date, but less so than most other funds on this list. The past two years also paint a rosier picture with nearly 20% gains in 2024 and over 32.5% in 2023. And that came on the heels of a nearly 30% loss in 2022. So if there’s one message to be taken here, it may be that tech funds are known for the rebound. Just put on your knee guards if you want to join this game.
Expense ratio: 0.47%
[READ: 7 Best Thematic ETFs to Buy in 2025]
First Trust Cloud Computing ETF (SKYY)
This $2.7 billion fund weights its portfolio by whether each of its holdings is active in each part of the cloud computing business — infrastructure, software and services — with a rule saying that no stock can be more than 4.5% of the fund. Relatively pure plays like Pure Storage Inc. (PSTG) join more diversified companies like Microsoft and International Business Machines Corp. (IBM) at the top of the list.
This results in a lower weighting for companies like ServiceNow Inc. (NOW) and Atlassian Corp. (TEAM), which are considered fairly pure cloud plays but aren’t involved in all three segments that First Trust tracks. About half of all fund assets are committed to software companies and nearly one-fifth are invested in IT services.
Performance here reflects the cloud industry’s recent history. While beaten down year to date, SKYY had impressive annual returns in 2024 (nearly 36%) and 2023 (over 52%). It has gained nearly 14% over the past 10 years.
Expense ratio: 0.6%
Global X Cloud Computing ETF (CLOU)
This $289 million fund invests in companies that may benefit from increased cloud technology adoption by tracking the Indxx Global Cloud Computing Index. To be included in this index, a company must generate at least half of its revenue from cloud computing activities.
This leads to a fairly small 37-stock portfolio. But it still manages to be fairly well diversified among these companies. The largest holding, cloud-based data storage company Snowflake Inc. (SNOW), accounts for just over 5% of the portfolio. And only 44% are in the top 10 names. What’s more, big names like Amazon and Microsoft don’t show up until far down the list, accounting for only less than 2% of assets each.
Founded in 2019, it doesn’t have the 10-year history that the First Trust fund has, but it has returned about 8% over the past five years, and three-year returns are negative 1.5%.
Expense ratio: 0.68%
Fidelity Cloud Computing ETF (FCLD)
By Fidelity standards, this fund is small at about $70 million in assets — but what it lacks in size, it makes up for in a top-notch investment process and management team.
The fund aims to “reflect the performance of a global universe of companies across the market capitalization spectrum that provide products or services enabling the increased adoption of cloud computing.” In practice, that means holdings in 49 companies, nearly 94% of which are based in the U.S. The biggest holdings are in software or software-as-a-service businesses like Microsoft, ServiceNow and Salesforce Inc. (CRM), but real estate plays like Equinix Inc. (EQIX) and Digital Realty Trust Inc. (DLR) also make the top 10.
The fund’s advantages include a relatively low expense ratio of 0.4% of assets. But whether it’s a good bet will depend on the development of the market and whether the proprietary index Fidelity uses to guide the fund can beat the path of tech stocks generally. With only three years on the market, FCLD hasn’t faced the test of time. But with Fidelity at the helm, you can trust you’re in good hands.
Expense ratio: 0.4%
Abacus FCF Innovation Leaders ETF (ABOT)
This is another newer ETF and one that isn’t strictly cloud computing. Launched at the end of 2020, ABOT focuses on “breakthrough innovators” in the tech space. It identifies these companies by their research and development investment and return on invested capital. By focusing on strong cash flow, the managers believe they can minimize volatility. It’s hard to tell if this is true given its short track record, but ABOT has posted some impressive returns.
It gained nearly 32% in 2024 and nearly 27% in 2022. However, it also lost over 24% in 2022. It’s also beaten down so far in 2025, posting a 13% loss. But if you’re willing to bet on the nearly 30 years of research guiding ABOT’s managers, this could make now a great time to buy.
The portfolio of 50 stocks includes some of the biggest names in the cloud industry, such as Microsoft and Google. But you’ll also find some health care and financial services companies among the techies, which just means better diversification.
Expense ratio: 0.39%
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5 Cloud Computing ETFs to Buy Now originally appeared on usnews.com
Update 05/01/25: This story was published at an earlier date and has been updated with new information.
