Introducing the BetaShares Cloud Computing ETF (ASX:CLDD)

Last month, BetaShares introduced the ASX’s first cloud computing ETF: CLDD. Here’s what you need to know about this hot new ETF.

What is the CLDD ETF?

The BetaShares Cloud Computing ETF (ASX: CLDD) is all about giving investors exposure to cloud computing businesses.

For companies to make it into this ETF’s portfolio, they must meet a minimum threshold for how much of their revenue is generated by cloud computing.

Businesses that generate more of their revenue from cloud computing services are given priority in the ETF’s portfolio.

So what businesses are inside the CLDD ETF?

I’m sure you’ll recognise some of the ETF’s top holdings, including:

  • Dropbox
  • Proofpoint
  • Zscaler
  • Twilio
  • Workday
  • Shopify
  • Xero (ASX: XRO)
  • Everbridge
  • Netflix, and
  • Paycom Software.

There are 36 positions in total, with smaller positions of stocks in the portfolio like Zoom, Microsoft, Amazon, Alibaba and Alphabet.

Many of the cloud businesses in this portfolio are among the best companies in the world in their respective industries.

Why is CLDD such a hot ETF?

Well, the idea of cloud computing itself is a pretty cool sector.

But this isn’t just about a theme that captures the imagination – the returns of these businesses have been strong over the long-term.

Whilst the ETF is new, the index that it tracks has been around for a while and has done stunningly well.

Over the past five years, the index has returned an average of 37.91% per annum. Looking at the last year, the net return of the index has been 40.25%. Past performance is definitely no guarantee of future performance in this case. But even if the future returns are half of those past performance figures, it’d still be a really good return.

The ETF has an annual management fee of 0.67% per annum.

My take

I think the CLDD ETF has a very promising future with how much of the world is still yet to change to cloud computing from their current computing infrastructure.

This certainly isn’t a dividend ETF and it’s likely to be a higher risk and more volatile ETF than many others. But I think it’s an interesting idea.

There are long-term structural tailwinds here that could carry the ETF higher for a number of years to come, barring any interest rate rising effects.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian-owned.

feedback-icon

What can we do better? Please give us us some feedback :)

We care about your experience, please let us know if you have any suggestions to improve our site.