|Bid||14.88 x 1400|
|Ask||14.94 x 2900|
|Day's Range||14.76 - 15.15|
|52 Week Range||14.27 - 16.96|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.68%|
Cloud computing stocks, particularly those with direct Software-as-a-Service (SaaS) exposure, were hot until investors started recently cooling on frothy valuations in the group. The SaaS slump has plagued software exchange traded funds, including the Global X Cloud Computing ETF (NASDAQ: CLOU). CLOU, which debuted in April, resides nearly 11% below its previous high.
Let us dig into some of the ETFs that are below $20, and have AUM of over $50 million and average daily volume of at least 50,000 shares. These low-priced ETFs could lead to huge gains in the coming months.
For all the talk about the technology sector's vulnerability to the U.S./China trade war -- and that assessment is credible -- the group hasn't been as bad as some investors are led to believe. In August, a rough month for equities at the hands of trade tensions, the tech-heavy Nasdaq-100 Index lost 1.4% while the Technology Select Sector SPDR (NYSEARCA:XLK), the largest tech ETF, was lower by 1%.Obviously, those are not numbers to write home about, but they speak to the point that tech ETFs have not been as awful as some investors have been programmed to believe. Plus, there are positive signs emerging, such as Apple (NASDAQ:AAPL) tapping debt markets for $7 billion and analysts waxing bullish about that stock, Intel (NASDAQ:INTC) and other big-name tech fare.Of course, relying on resolution to the trade spat to fuel tech ETFs can be a volatile bet. As volatile as, say, President Donald Trump's Twitter fingers. And all of this is ignoring the headline risk of government regulation stepping into some of the biggest players.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy Yes, tech ETFs could use a boost via a cooler trade environment and less headline risk, but there are some solid fundamentals remaining in the sector. That makes some of the following tech ETFs worthy of consideration over the remainder of 2019. Tech ETFs to Buy: VanEck Vectors Semiconductor ETF (SMH)Expense Ratio: 0.35%Semiconductor stocks have been front and center during the trade controversy, but the reality is the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) lost just a third of a percent last month, and there are reasons to be optimistic about chip stocks. Adding to the case for this tech ETF is that semiconductor demand is usually strong in toward the end of the year, a scenario that should it repeat, would defy calls for slack demand.Another iPhone demand cycle coupled with ongoing 5G investments are among the factors that should support chip demand over the next several months. Increased data center spending, discussed here, also has the potential to support tech ETFs and chip names over the near- to medium term.Additionally, SMH is technically healthy relative to other tech ETFs. The fund resides well above its 200-day moving average and just 6.2% below its 52-week high, indicating more new highs before the end of 2019 are not an unreasonable expectation. Global X Cloud Computing ETF (CLOU)Expense Ratio: 0.68%One of this year's most successful new ETFs, the Global X Cloud Computing ETF (NASDAQ:CLOU) has over $500 million in assets under management following its April debut. This tech ETF currently resides about 8% below its highs due in large part to valuations concerns in the Software-as-a-Service (SaaS), a major area in CLOU.Broadly speaking, cloud stocks are growth fare, leaving the door open for some retrenchment when investors favor more defensive, lower-volatility strategies. Conversely, CLOU is backed by an enticing, fundamentally sound long-term proposition. * 7 Deeply Discounted Energy Stocks to Buy "The global cloud computing market is estimated to be worth well-over $300 billion by 2022, up from about $188 billion today and growing at a compound annual growth rate (CAGR) of 14.6%," according to Global X research. WisdomTree Modern Tech Platforms Fund (PLAT)Expense Ratio: 0.45%Another rookie tech ETF, the WisdomTree Modern Tech Platforms Fund (NYSEARCA:PLAT) debuted in May and takes a unique approach to tech investing, opting to focus on asset-light, transformative, platform-based business models."WisdomTree defines a modern technology platform as a company with a non-linear, multi-sided business model focused on creating value by facilitating interactions between two or more interdependent groups through technology," according to the issuer.PLAT is not a dedicated tech ETF, as it features exposure to six sectors with communication services and consumer discretionary combining for 57% of the fund's weight."The structural advantages of the platform-based businesses we seek to invest in can be reflected in financial metrics through robust revenue growth, margin expansion, substantial free cash flow generation and strong returns on capital," WisdomTree said. iShares U.S. Technology ETF (IYW)Expense Ratio: 0.42%A decent idea for the investors looking for basic tech exposure via the ETF wrapper, the iShares U.S. Technology ETF (NYSEARCA:IYW) is often known for its large combined weight to industry behemoths Microsoft (NASDAQ:MSFT) and Apple. Those stocks combine for nearly a third of this tech ETF's weight.Of course, those are quality stocks, as is much of IYW's lineup, in a sector not known for being a value play. But investors should not be put off by the valuations on some of IYW's marquee holdings. * 7 Best Tech Stocks to Buy Right Now "The sector trades at approximately 21.5 times trailing earnings and 20 times forward earnings. Current valuations compare favorably with the long-term average but look elevated relative to the post-crisis norm," according to BlackRock. "The sector trades at a 10%-15% premium to the broader market. This is above the post-crisis average of about 4%. That said, it is worth noting that relative value looks more compelling based on other metrics, notably price-to-cash-flow. On this metric the sector's current relative valuation is below the post-crisis average." Invesco DWA Technology Momentum ETF (PTF)Expense Ratio: 0.6%It might appear to be reasonable to assume that the combination of technology stocks and momentum was punitive for the Invesco DWA Technology Momentum ETF (NASDAQ:PTF) in August, but the opposite is true. This tech ETF actually outperformed more prosaic rivals, losing just a third of a percent in the eighth month of the year.PTF follows the DWA Technology Technical Leaders Index. That benchmark "designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe," according to Invesco.PTF holds 39 stocks with an average market value of $22.7 billion, which is far smaller than what is found on more traditional tech ETFs. The Invesco fund is a growth ETF as over 93% of its holdings are designated as growth stocks and it is a software proxy as that industry represents over 59% of its weight. Global X Internet of Things ETF (SNSR)Expense Ratio: 0.68%Being a thematic fund, the Global X Internet of Things ETF (NASDAQ:SNSR) could be the type of play that investors abandon in rough markets, but that would be the wrong way of approaching this tech ETF. Yes, SNSR is more volatile (standard deviation of 18.5%) than a run-of-the-mill tech ETF like IYW or XLK, but there is also significant growth potential here.Few, if any, of the disruptive technology themes investors have been hearing so much about over the past couple of years have the reach that the Internet of Things has, meaning it touches both businesses and consumers and in significant fashion. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off "On the enterprise side, the IoT will help businesses collect vast amounts of data that can be used in varying capacities, from predicting consumer behavior to reducing supplier risks," according to Global X. "Forecasts expect 20.4 billion connected devices to be online by 2020 with $1.4 trillion in worldwide annual spending on IoT hardware, software and services by 2021." First Trust Nasdaq Technology Dividend ETF (TDIV)Expense Ratio: 0.5%Dividends are meaningful drivers of long-term total returns and stocks in this category, particularly dividend growers, are often less volatile than their non-dividend peers. The First Trust Nasdaq Technology Dividend ETF (NASDAQ:TDIV) proves as much as it has been significantly less volatile than the Nasdaq-100 and broader tech ETFs over the past several years.Owning this tech ETF means capturing exposure to mature tech companies, some with value profiles and some that can be laggards relative to their growth-oriented peers.The upside is the aforementioned reduced volatility, quality balance sheets, dependable dividend growth and a better yield (2.28%) and more upside potential than government bonds.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 7 Tech ETFs to Invest In Now appeared first on InvestorPlace.
Three cloud computing exchange traded funds that is. The latest entrant to the cloud ETF fray tracks the BVP Nasdaq Emerging Cloud Index, which is equally weighted Index designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers,” according to WisdomTree.
While healthcare and consumer staples are the go-to sectors in a recession, technology can still thrive even in a market downturn. As such, investors might want to consider taking a closer look at technology exchange-traded funds (ETFs) as a value-infused option. Technology Select Sector SPDR ETF (XLK) : The Technology Select Sector SPDR Fund tries to reflect the performance of the Technology Select Sector Index, which is comprised of technology and telecom sector of the S&P 500.
New exchange traded funds face plenty of headwinds on the road to success. The Global X’s Cloud Computing ETF (CLOU) is a targeted ETF that, when it debuted in April, wasn't the first cloud computing ETF on the market. CLOU entered a competition long monopolized by First Trust ISE Cloud Computing Index Fund (SKYY) .
As the U.S. government has announced investigation on the largest U.S. tech companies for anti-competitive practices, these FAANG-heavy ETFs thus could suffer ahead.
Microsoft reported its second-quarter earnings on Thursday as the software giant ousted analyst expectations with $1.37 earnings per share as opposed to Wall Street forecasts of $1.21 EPS. Notably, for the first time in three years, Microsoft's cloud computing segment added more revenue versus the core productivity and business processes segments. Microsoft's Intelligent Cloud segment is shored up by products like Azure, SQL Server, Windows Server, Visual Studio, System Center, consulting services and support.
NEW YORK , July 10, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of three additional ETFs to Schwab ETF OneSource, one ...
The Global X Cloud Computing ETF (CLOU) is not even two months old and it already has $300 million in assets under management, confirming that investors are willing to use exchange traded funds to access the myriad growth opportunities associated with the cloud. CLOU, which tracks the Indxx Global Cloud Computing Index, could be positioned to help investors take advantage of new, potentially massive cloud computing trend: the hybrid cloud. “Hybrid cloud is the computing model that lets businesses store and process data and use applications on a public cloud — like those run by Amazon Web Services, Microsoft and Google — while still keeping some percentage of that work in their own data centers,” reports Business Insider.
Technology sector took a hit badly in yesterday's trading session on antitrust scrutiny concerns that wiped out more than $133 billion from the market value of the four technology giants.
Though there has been a bloodbath in the tech space in May due to escalating trade tensions, some ETFs stood out on their inherent strength and more solid investment objectives.
The technology sector, the largest sector weight in the S&P 500, is usually the first place investors look for disruptive products and themes that have the potential to bring seismic shifts to everyday functions, such as banking, shopping, transportation and much, much more.Sure, traditional tech ETFs can help investors gain exposure to fast-growing, unique themes. However, old-guard tech ETFs are usually heavily allocated to the sector's largest companies and many of those firms may, at least for the moment, only have small exposure to some of the industry's revolutionary products and themes.Investors looking to tap some of the truly revolutionary tech themes may need to be somewhat aggressive, eschewing defensive strategies in favor of more thematic fare. Of course, the trade-off for taking on a little more risk is the potential for out-performance.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Over 20% Upside Potential Here are five tech ETFs providing access to some compelling themes. Global X Cloud Computing ETF (CLOU) Source: Shutterstock Expense ratio: 0.68% per year, or $68 on a $10,000 investment.Give the Global X Cloud Computing ETF (NASDAQ:CLOU) some credit. It's one of the newest tech ETFs to be highlighted here following its mid-April debut, and CLOU is already to home to nearly $154 million in assets under management. That is an impressive haul for a thematic tech ETF that is barely more than a month old and CLOU's asset-gathering acumen is even more impressive when considering the fund entered a niche with established competition and that rival ETF is cheaper.CLOU tracks the Indxx Global Cloud Computing Index. This new tech ETF's roster includes companies "whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data center real estate investment trusts, and/or cloud and edge computing infrastructure and hardware," according to Global X.For long-term investors, CLOU is a potentially lucrative choice due to the exponential growth expected of the cloud market."The worldwide public cloud services market is projected to grow 17.3 percent in 2019 to total $206.2 billion, up from $175.8 billion in 2018," according to Gartner, Inc. "The fastest-growing segment of the market is cloud system infrastructure services (infrastructure as a service or IaaS), which is forecast to grow 27.6 percent in 2019 to reach $39.5 billion, up from $31 billion in 2018." BlueStar Israel Technology ETF (ITEQ)Source: Shutterstock Expense ratio: 0.75%The BlueStar Israel Technology ETF (NYSEARCA:ITEQ) does not target a specific niche or segment, but this fund is every bit a nifty tech ETF. Plus, ITEQ is soaring this year. ITEQ, which hit an all-time high on Friday, May 17, is up 23% year-to-date, beating the MSCI Israel Index by nearly 1,000 basis points.ITEQ is the first tech ETF dedicated to Israel's vast technology economy. As such, the fund addresses several fast-growing tech industries, including 3D printing, artificial intelligence, autonomous vehicles, cybersecurity and more. More than 75% of ITEQ's 57 holdings are technology stocks, but the fund features exposure to healthcare and industrial names, among other sectors. ITEQ could also serve as an avenue for investors looking to dodge the fallout from the U.S./China trade spat. * 7 ETFs for Healthy Healthcare REITs "Last year, Israel's exports to China alone increased by 52%. A significant portion consisted of hi-tech and cyber-solutions, which Israeli companies sold to Chinese customers and investors," reports The Jerusalem Post. "The soaring trade between Israel and China is further encouraged by US-Chinese relations. As Trump continues his 'America first' policy, Silicon Valley becomes less accessible to companies in China. Israel's rapidly growing hi-tech industry is an attractive replacement, and its technology companies are taking advantage of the opportunities the Chinese markets offer." The 3D Printing ETF (PRNT)Source: Shutterstock Expense ratio: 0.66%The 3D Printing ETF (CBOE:PRNT) is a passively managed tech ETF that hails from the ARK family of ETFs, which is home to some of the best-performing and largest actively managed equity ETFs on the market. PRNT, which is fast approaching its third anniversary, tracks the Total 3D-Printing Index.That benchmark "is composed of equity securities and depositary receipts of exchange listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing related businesses within the following business lines: (i) 3D printing hardware, (ii) computer aided design ("CAD") and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials," according to PRNT's issuer.PRNT holds 57 stocks and is up 11.32% this year. Bolstering the case for PRNT as a tactical tech ETF for risk-tolerant investors are robust growth expectations for the global 3D printing market. Alone, the 3D printing materials market could be worth $23 billion in 2029 and rapid growth is forecast for 3D printing applications and products in industries such as automotive, healthcare and more. ALPS Disruptive Technologies ETF (DTEC)Source: Shutterstock Expense ratio: 0.50%The ALPS Disruptive Technologies ETF (CBOE:DTEC) is one of the best tech ETFs for investors seeking thematic exposure to consider because the fund dives into 10 themes, not just one or two. DTEC's 10 disruptive themes are equally weighted and include 3D printing, artificial intelligence, cloud computing, cybersecurity, healthcare innovation, Internet of Things and more.Not only are the 10 themes featured in DTEC weighted equally, but so are the fund's components, which provides a layer of mitigation of single stock risk. DTEC holds 100 stocks across the large-, mid- and small-cap segments. "Thematic investing aims to capture exposure to secular trends taking shape within an economy, which can arise due to demographic shifts, changes in government policy, or more commonly, advances in technology," according to ALPS.DTEC is up 23.35% year-to-date and is beating the Nasdaq-100 Index by more than 400 basis points. Defiance 5G Next Gen Connectivity ETF (FIVG)Source: Shutterstock Expense ratio: 0.30%The Defiance 5G Next Gen Connectivity ETF (NYSEARCA:FIVG) debuted in March as the the first fund dedicated to the 5G communications theme and this tech ETF is off to a solid start with $77.66 million in assets under management. FIVG's annual fee of just 0.30%, or $30 on a $10,000 investment, compares favorably with the broader universe of thematic tech ETFs and that could be one reason why this highly focused product is luring investors.Eight industry groups are represented in FIVG and the tech ETF is heavy on semiconductor makers and manufacturers of networking gear. Familiar names among FIVG's top 10 holdings include Xilinx Inc. (NASDAQ:XLNX), Broadcom Inc. (NASDAQ:AVGO) and Cisco Systems Inc. (NASDAQ:CSCO).What makes FIVG an interesting tech ETF over the long run is that 5G's applications are about much more than mobile phones. Sure, we're all hearing about 5G in AT&T and Verizon adds, but the applications of 5G spread into smart cars, healthcare, Internet of Things and much more. * 7 Battery Stocks for High-Powered Gains 5G will support applications that rely on low latency, high reliability, strong security and availability, enabling the operation of remote devices where failure is not an option. For example, in autonomous vehicles or remote surgeries," according to Defiance ETFs.Todd Shriber does not own any of the aforementioned securities.Compare Brokers The post 5 ETFs to Buy for the Future of Technology appeared first on InvestorPlace.
When investing in volatile markets, investors should focus on stocks with strong growth stories that have been "unfairly punished by short-term market noise," Mark Tepper, president at Strategic Wealth Partners, told CNBC, particularly highlighting the cloud computing and software segment as a service in this environment. "If you stick with companies whose growth stories are less impacted by market noise, you're going to do well," Tepper added. For example, Tepper underscored the opportunity in companies like Microsoft (MSFT) that are expanding into cloud computing.
Many new exchange traded funds struggle to attract assets immediately following their debuts. This is especially true of niche ETFs and those funds entering a market segment occupied by an established ...
The universe of dedicated cloud computing exchange traded funds (ETFs) doubled in size with Tuesday's debut of the Global X Cloud Computing ETF (CLOU). CLOU, the latest addition to Global X's growing suite of thematic ETFs, targets the Indxx Global Cloud Computing Index. Companies in the new ETF are “positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data center real estate investment trusts, and/or cloud and edge computing infrastructure and hardware,” according to Global X.
You can't see it, but the impact of cloud computing can be felt as more companies are utilizing the technology at a rapid pace to power their core businesses. Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from 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 distribute infrastructure and/or hardware components used in cloud and edge computing activities.