BetaShares will offer Australia’s first cloud computing ETF
BetaShares, one of the main ETF providers in Australia is now offering ETFs of cloud computing companies.
An ETF, or an exchange traded fund, is a basket of securities — bonds, commodities, stocks — that can be bought and sold in the stock market. If you invest in an ETF, you are spreading your money in a range of different stocks, thereby diversifying your investment portfolio.
Named BetaShares Cloud Computing ETF, the new ETF is now trading with the ticker code CLDD on the Australian Securities Exchange (ASX). As of now, major cloud-based companies including Zoom, Shopify, and Dropbox will be on the ETF.
“Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world’s digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast,” wrote BetaShares on its official website.
The company also states that by investing in a cloud ETF, investors will be able to obtain diverse and cost-effective exposure to the cloud computing industry in Australia, one that is still underrepresented in the ASX.
The ETF requires no minimum investment, and clients can buy and sell units just like any other share on the ASX. Globally, ETFs tracking the SaaS sector have outperformed the broader market in 2020. The Global X Cloud Computing ETF has climbed 63.4 per cent in 2020 and has gained 5.7 per cent since the start of 2021 (as of 17 February’s close), according to data from CMC Markets.