First Trust has expanded the reach of its cloud computing ETF, listing the fund on the Italian Stock Exchange, 15 months after its launch on the London Stock Exchange.
The First Trust Cloud Computing UCITS ETF (FSKY) is based on the ISE CTA Cloud Computing Index, a modified market capitalisation-weighted system which consists of 80 securities. It is designed to track the performance of companies actively involved in the cloud computing industry.
To be included in the index, a security must be classified as a cloud computing company, as defined by the Consumer Technology Association.
Each security needs to meet the minimum market capitalisation of $500 million, as well as a minimum free float of 20 percent, and a minimum three-month average daily dollar trading volume (ADDTV) of $5 million.
Securities are divided into three classifications: infrastructure-as-a-service (IaaS). platform-as-a-service (PaaS) and software-as-a-service (SaaS).
Iaas includes companies that deliver cloud computing infrastructure such as servers, storage, and networks as an on-demand service.
PaaS categorises companies that deliver a platform for the creation of software in the form of virtualisation, such as middleware, and operating systems, which are then delivered over the internet.
SaaS refers to companies that deliver software applications over the internet, enabling other companies to conduct their operations using the application.
Gregg Guerin, a senior product specialist at First Trust, said: “Since launching FSKY on the London Stock Exchange in December, we have seen substantial interest from advisers and wealth managers alike, seeking ways to offer efficient strategies to meet the growing demand for the global public cloud market.
Commenting on the opportunities presented by cloud computing, he explained: “Cloud company, Oracle, suggests that currently only 20 per cent of enterprise computing is in the cloud, and with Gartner forecasting that Public Cloud Services Revenue will grow from $227.8 billion to $354.6 billion by 2020, we believe the cloud offers a great pure play, clear-cut growth opportunity.”
Silvia Bosoni from Borsa Italiana added: “We are delighted to welcome the new ETF of First Trust, innovative firm renowned in the factor-based ETF market, that today lists its FSKY on Borsa Italiana’s ETF-plus market, confirming the continuous growth of ETF-plus in the international economic landscape.”
