WCLD ETF

Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund launched on 09/06/2019.

The WisdomTree Cloud Computing Fund is recommended with a SELL rating due to its lackluster performance and exclusion of major growth drivers like Alphabet and Microsoft. WCLD focuses on high-growth cloud companies but excludes mega cap tech stocks, limiting its growth potential compared to broader indices like the Nasdaq 100. Despite a low expense ratio of 45bps, WCLD has significantly lagged behind competing ETFs like Global X Cloud Computing ETF in terms of performance.

The WisdomTree Cloud Computing ETF (WCLD) was launched on 09/06/2019, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.

Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund launched on 09/06/2019.

WisdomTree Cloud Computing Fund offers focused exposure to cloud-based software companies, leveraging the growth potential of the cloud computing sector. WCLD's equal-weighted strategy reduces concentration risk and highlights medium-sized companies with high-growth potential, unlike market-cap weighted tech ETFs. The fund primarily invests in U.S. companies, with a significant allocation to information technology, reflecting the dominance of U.S. firms in cloud computing.

The decade of AI doesn't negate cloud computing growth; SaaS is expected to grow with a CAGR of 12-19% until 2030. WCLD, focused on small- and mid-cap SaaS stocks, could benefit from lower interest rates and is slightly undervalued compared to peers. A very small position could be initiated now, with potential additions at better prices or after reassessment in several months.

The WisdomTree Cloud Computing ETF (WCLD) made its debut on 09/06/2019, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.

Designed to provide broad exposure to the Technology - Cloud Computing segment of the equity market, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund launched on 09/06/2019.

Despite all the hoopla surrounding technology stocks in the first half of 2024, software names struggled. In fact, some cloud computing indexes and ETFs have year-to-date losses.