ETF provider BetaShares is set to launch a new ASX ETF called the BetaShares Cloud Computing ETF (ASX:CLDD). Here’s what we know
The post Take a look at the ASX’s new cloud ETF appeared first on The Motley Fool Australia. –
The ASX is set to welcome yet another exchange-traded fund (ETF). ETF provider BetaShares has announced that a new thematic fund is set to join its ranks soon – and it will track companies that operate in the cloud.
What is BetaShares
BetaShares is one of the ASX’s most well-known ETF providers. It currently offers a range of ETFs that span simple market-tracking index funds like the BetaShares Australia 200 Fund (ASX: A200) to specialised thematic ETFs like the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ).
What’s this new cloud ETF?
BetaShares has announced that the new ETF will be named the BetaShares Cloud Computing ETF, with the ticker code CLDD. There aren’t too many additional details just yet, but here’s what we know. Firstly, BetaShares has given away that Xero Limited (ASX: XRO) will feature, along with Shopify Inc (NYSE: SHOP), DropBox Inc (NASDAQ: DBX), and Zoom Video Communications Inc (NASDAQ: ZM).
BetaShares tells us that this new ETF will aim to bring 3 benefits to ASX investors: growth potential from the cloud growth space, a ‘pure-play’ exposure to the cloud, and diversification from a basket of shares that are underrepresented on the ASX.
The ETF will track an index dedicated to following the cloud computing sector. This index looks to be the Indxx Global Cloud Computing Index. This index holds 36 stocks, with the top 5 constituents being Fastly, Zscaler, Shopify, Proofpoint and Twilio.
It also holds some of the larger, more familiar cloud giants like Amazon, Microsoft, Alibaba, Alphabet and Netflix.
What kind of performance can we expect?
Well, the ETF hasn’t even launched yet, so take this with a grain of salt. But according to BetaShares, “the index that CLDD will aim to track” has delivered an annual average performance (in Australian dollar terms) of 34.4% per annum between November 2013 and the end of January 2021. Of course, past performance is no indication of future returns. But it is informative knowing that this index will have some nice historical returns behind it.
BetaShares has not yet told us when this ETF will hit the ASX boards. But all ASX cloud enthusiasts should watch this space!
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Dropbox, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Amazon, Microsoft, Netflix, Shopify, Twilio, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Netflix, Twilio, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.