The tech industry has been one of the only sectors that has been only minimally impacted by the coronavirus pandemic financial crisis that struck the market in late March. The tech heavy Invesco QQQ
Cloud computing stocks have exploded recently due to the workforce's need to adapt to remote workplaces in response to coronavirus pandemic related shutdowns and stay-at-home orders. The shift to decentralized workforces has created an overwhelming need for digitized operations and tools that enable virtual connectivity and functionality to keep businesses moving. That is where cloud computing steps in.
The cloud computing industry is made up of a range of companies, with big tech mainstays and niche ventures alike. The cloud contains three main services: software-as-a-service (SaaS), which handles web-based applications; infrastructure-as-a-service (IaaS), which gives Internet-based access to storage and computing powers; and platform-as-a-service (PaaS), which gives developers tools to build and host web based content.
The sector's biggest players are Amazon's AWS
Trading on the cloud can also be simpler with exchange-traded funds, but its important to note that not all cloud ETFs are the same:
Global X Cloud Computing ETF
CLOU provides exposure to companies that are positioned to benefit from cloud computing adoption. This fund's top ten holdings include Twilio, Zoom Video
First Trust Cloud Computing ETF
SKYY tracks an all stocks that fall into any one of three cloud computing sub-groups: infrastructure, platform and software. The fund's top holdings include big tech companies like Amazon, Microsoft and Alphabet, as well as VMware
WisdomTree Cloud Computing Fund
WCLD tracks an equally-weighted index of U.S. companies mostly focused on cloud software and services. The fund holds smaller firms like Datadog