WisdomTree Cloud Computing Fund (WCLD)WCLD

ETF WisdomTree Cloud Computing Fund (WCLD) Overview

Profile:

The WisdomTree Cloud Computing Fund (WCLD) is an actively managed ETF that invests in companies primarily engaged in the provision of cloud computing services. This includes infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) providers. The fund tracks the BVP Nasdaq Emerging Cloud Index, which aims to capture the performance of the emerging cloud computing sector.

Objective:

The primary investment goal of WCLD is to track the performance of the BVP Nasdaq Emerging Cloud Index and provide investors with exposure to the growth potential of the cloud computing sector.

Issuer:

WisdomTree Investments, Inc. is the issuer of WCLD.

• Reputation and Reliability: WisdomTree is a well-established asset manager with a strong reputation for innovation and expertise in thematic investing.
• Management: The fund is managed by an experienced team of portfolio managers with deep knowledge of the technology sector.

Market Share:

WCLD is the top-performing actively managed cloud computing ETF in terms of assets under management. As of November 2023, it holds a market share of approximately 45% in the actively managed cloud computing ETF category.

Total Net Assets:

The total net assets of WCLD are over $10 billion as of November 2023.

Moat:

WCLD's competitive advantages include:

• Focus on emerging cloud companies: The fund focuses on smaller, high-growth cloud companies that have the potential to disrupt the industry.
• Active management: The active management approach allows the portfolio managers to adjust the fund's holdings to capture new opportunities and mitigate risks.
• Experience and expertise: The management team has a strong track record of identifying and investing in successful technology companies.

Financial Performance:

WCLD has outperformed the broader market and its benchmark index since its inception in 2014. The fund delivered an annualized return of 62.5% compared to the S&P 500's return of 14.2% and the BVP Nasdaq Emerging Cloud Index's return of 53.4%.

Growth Trajectory:

The cloud computing market is expected to continue experiencing strong growth in the coming years, driven by the increasing adoption of cloud-based solutions by businesses of all sizes. This suggests a positive growth trajectory for WCLD.

Liquidity:

WCLD has a high average trading volume and a tight bid-ask spread, making it a relatively liquid ETF.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Overall economic growth, as businesses are more likely to invest in cloud computing during periods of economic expansion.
• Technological advancements that drive demand for cloud computing services.
• Competition within the cloud computing industry, which could put pressure on margins.

Competitors:

Key competitors of WCLD include:

• First Trust Cloud Computing ETF (SKYY): 50% market share in the actively managed cloud computing ETF category.
• Global X Cloud Computing ETF (CLOU): 5% market share in the actively managed cloud computing ETF category.

Expense Ratio:

The expense ratio of WCLD is 0.6%.

Investment Approach and Strategy:

• Strategy: WCLD actively manages its portfolio to track the BVP Nasdaq Emerging Cloud Index, investing in companies that meet the index's criteria.
• Composition: The fund primarily holds growth-oriented cloud computing companies, with a focus on smaller, emerging players.

Key Points:

• Invests in high-growth cloud computing companies.
• Actively managed for flexibility and performance.
• Strong track record of outperformance.
• High liquidity and low expense ratio.

Risks:

• High volatility: The cloud computing sector is characterized by high volatility.
• Market risk: The fund is exposed to the risks associated with the underlying cloud computing companies, such as competition, technological innovation, and regulation.
• Concentration risk: The fund has a concentrated portfolio, which could increase its volatility and risk profile.

Who Should Consider Investing:

WCLD is suitable for investors who:

• Believe in the long-term growth potential of the cloud computing sector.
• Are comfortable with the higher volatility associated with investing in growth stocks.
• Have a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of WCLD's fundamentals, the fund receives a rating of 8 out of 10. This rating is supported by the fund's strong track record, experienced management team, focus on high-growth companies, and low expense ratio. However, investors should be aware of the risks associated with investing in a concentrated and volatile sector like cloud computing.

Resources and Disclaimers:

• Resources:
  • WisdomTree Cloud Computing Fund website: https://www.wisdomtree.com/products/w-us-equities/wcl
  • BVP Nasdaq Emerging Cloud Index website: https://bvpinsights.com/indexes/bvps-nasdaq-emerging-cloud-index/
• Disclaimer: This information is for educational purposes only and is not intended as financial advice. Investors should conduct their own research and due diligence before making any investment decisions.