Possibility That Waiting On The Sidelines May Be A Mistake
I understand the hesitancy, but with this one, I really think the possibility exists that this particular ETF will take off before too long. I took a long position on the 2nd day.
Here is an excerpt from an article, titled, "ETF Insider: Look Out Below":
SKYY has apparently tapped into a huge void in the market; the massive trading volumes indicate that investors are anxious to access what many believe will be the next big thing in the tech sector. SKYY is an interesting product, investing in about 40 stocks with operations in the cloud computing space. While some of the components are pure play cloud computing firms, others focus only a portion of their operations on this corner of the technology space; index constituents are classified as either 1) pure play cloud computing firms, 2) non-pure play cloud computing companies, or 3) technology conglomerate cloud computing companies.
As such, the underlying portfolio is a mix of small, early stage companies and established tech giants such as Microsoft and Apple. The unique index methodology is a compelling way to establish exposure to what is expected to be a major driver of growth going forward; only time will tell how well the methodology employed translates into correlation with the growth of cloud computing [see full write-up on SKYY].
How ETFs Are Generating Buzz by DO DION- Launched during the middle of last week, SKYY is designed to target the growing world of cloud computing. Despite launching during a shortened holiday week, the fund still managed to generate plenty of interest among market commentators and investors. In the days following its July 5 launch, SKYY has managed to gather ample interest. The fund's average trading volume already stands at over 600,000 shares. With search giant Google(GOOG_) reporting earnings this week, I expect SKYY and the rest of the tech sector to remain on investors' minds. SKYY's strong start not only bodes well for First Trust, but also for the broader ETF universe's expansion. Investors are clearly still interested in finding new ways to target their favorite sectors and industries and with ETF providers like First Trust and Global X standing by to satisfy this demand, I look forward to seeing the debuts of even more new and exciting funds. I would have this on my watch list as the winners in the sector are represented by the ETF. The bottoms are hard to call and seldom done. It could be time to start adding a little every couple weeks going into AUGUST and traditional lows.