CLOU News

Inside some of the hottest ETF themes for 2020.

As has been widely noted, the Global X Cloud Computing ETF (CLOU) , which debuted in April, is one of this year's most impressive success stories among new ETFs. More important than its asset-gathering acumen, CLOU has plenty of catalysts to keep rolling higher in 2020. CLOU, which debuted in April, follows the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services.

Hundreds of new ETFs have come to market this year with the Global X Cloud Computing ETF (CLOU) easily ranking among the standouts. CLOU, which debuted in April, follows the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribution infrastructure and/or hardware components used in cloud and edge computing activities.

These ETFs topped the list last week with hefty returns despite geopolitical tensions.

We have presented a bunch of top-performing ETFs to start 2020 that are likely to continue outperforming, should the trends prevail.

Find out more about cloud computing, Internet of Things, video games and infrastructure ETFs.

As more and more companies add cloud computing as a core component of their existing business models, the movement to the cloud doesn’t preclude public companies. Last week, Microsoft signed a $10 billion deal with the Pentagon as part of their Joint Enterprise Defense Infrastructure Cloud, which underscores the importance of cloud computing. It’s been a battle of tech heavyweights as they vie for cloud computing dominance, especially between Amazon and Microsoft.

No Rebound to This Morning’s Selloff

Inside the new ETFs of 2019 that have garnered considerable assets.

Low-priced stocks could be attractive as these will enable them to buy more shares instead of just a handful of higher-priced shares for the same amount.

We highlight the most interesting ETFs launched in 2019

While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the third quarter and hedging or reducing many of […]

Find out more about cloud computing, Internet of Things, video games and infrastructure ETFs.

The cloud computing arms race isn’t relegated to the tech giants like Google and Amazon. Organizations around the world are opening up their wallets and spending more on cloud computing technology to fortify their core businesses, resulting in record spending in 2019.

This article is a part of InvestorPlace.com's Best ETFs for 2020 contest. Dana Blankenhorn's choice for the contest is the Global X Cloud Computing Fund (NASDAQ:CLOU).Since the start of 2020, the Global X Cloud Computing Fund (NASDAQ:CLOU) is down by 9%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn a market infected with fear thanks to the coronavirus from China, that counts as a win.CLOU had been outperforming the S&P 500 during January and February. The divergence has sharpened since things got serious on Feb. 19. Since then, CLOU is down 18%, but the S&P is down 27%. Is This Still One of the Best ETFs to Consider?CLOU is designed to track the INDXX USA Cloud Computing Index. This index encompasses companies that are actively involved in the cloud computing industry. Most are applications sold as services.The largest holding of CLOU is Shopify (NYSE:SHOP), an e-commerce application that was one of the market's best performers in 2018 and 2019. Over the last three years it rose from less than $70 per share to a recent high of almost $600 before falling back to its present level of $415.Other big application providers in the index are Netflix (NASDAQ:NFLX), Salesforce (NYSE:CRM) and Twilio (NYSE:TWLO), the latter of which embeds voice, video and text into other applications.Many CLOU components provide services for other cloud companies. An example is Zscaler (NASDAQ:ZS), a cloud security company whose shares are up 23% so far in 2020. Zscaler has been warning about risks in the "shadow IoT" world, the laptops and phones used by workers at home. * 7 Small-Cap Stocks That Are Not Worth a Second Glance Not everything CLOU touches has turned to gold. Among the losers so far are Paycom Software (NYSE:PAYC), which provides cloud-based human resources applications. Paycom has been hit hard as companies have moved to lay off workers, and the shares are down 20% so far in 2020. Beyond ApplicationsCLOU doesn't just feature cloud application providers.Akamai Technologies (NASDAQ:AKAM), originally created as a Content Delivery Network in 1998, now offers a host of security and connectivity solutions for carriers. Its software works inside the network, invisible to most users. Its customers include service providers as well as enterprises. Akamai shares are up nearly 3% so far this year.Another big holding is Digital Realty Trust (NYSE:DLR), a real estate investment trust (REIT) that owns data centers. These are the buildings, filled with computers and networking gear, through which enterprises connect with the cloud and clouds connect to each other. REITs are organized to build with debt and pay income back to shareholders. DLR's dividend of $4.48 per share last year yielded 3.34%. Since the start of the year, DLR shares are up 13%.Proofpoint (NASDAQ:PFPT) focuses on protecting e-mail, both the messages themselves and the mailboxes they rest in. This has become the most expensive problem in all of cybercrime, the company says. Since the start of 2020, however, Proofpoint shares are down by 14%, because it has been delaying profits in favor of growth. That's an approach that is in bad taste right now. The Bottom Line on CLOUI had no idea a global pandemic was around the corner when I chose to recommend CLOU late last year.I was just looking to win the contest. It seemed to me that remote work, and cloud applications, were fated to grow fast. Most CLOU holdings are growth companies, not dividend payers, and that aggressive approach will usually win.As I wrote at the time, "To win a contest you must be bold." Even by the end of 2019, the transition to the cloud was only 20% complete, according to International Business Machines (NYSE:IBM).That puts cloud applications at the center of their growth curve. Such companies have ample pricing power, limited competition and innovative solutions to offer. The way to growth is always on the leading edge.So, it seems, is the way to safety in a panic.Dana Blankenhorn has been a financial journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned shares in DLR. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post Best ETFs of 2020: The Global X Cloud Computing Fund Should Be a Winner appeared first on InvestorPlace.

Now home to more than $462 million in assets under management, the Global X Cloud Computing ETF (CLOU) is undeniably one of 2019's most successful new ETFs, but more important than CLOU's rookie year success is its potential to be durable over the long run. CLOU, which debuted in April, follows the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribution infrastructure and/or hardware components used in cloud and edge computing activities.

These new ETFs have amassed solid assets within just months of launch and have seen solid price appreciation too.

Given the bullish holiday outlook, the tech sector appears a compelling last-minute investment.

Are you worried about overvaluation concerns in the broader market? These five ETFs can be bought at as low as $20 along with expectations for solid gains in 2020.