Best Cloud ETFs

“Cloud computing” covers a few different layers, and a cloud ETF usually mixes them. At the bottom are the hyperscalers and infrastructure providers, the companies that run the large public clouds and the data centers, networking, and storage behind them. On top of that sits software-as-a-service (SaaS): the application companies that deliver business software over the internet, from customer and data tools to security and collaboration. Some funds add cloud-adjacent names in data centers and cybersecurity.

The important thing is that these are all technology companies, so a cloud ETF behaves like a concentrated slice of tech rather than a broad, diversified fund. How a given cloud ETF feels depends heavily on how much weight it gives to the giant, profitable hyperscalers versus the smaller, faster-growing pure software names. That single design choice is what separates the funds below, and it matters more than the name on the label.

SKYY (First Trust Cloud Computing) is the oldest and largest cloud ETF, and it is built to include the mega-cap hyperscalers, the giant companies that operate the biggest public clouds, alongside pure cloud infrastructure and software names. That means a meaningful share of SKYY tracks large, profitable, cash-generating tech giants rather than only small, high-growth software companies. Its expense ratio is around 0.60%.

Because of that hyperscaler weight, SKYY tends to be steadier and more correlated with big tech and broad market indexes than a pure SaaS fund. The trade-off is that it is less of a concentrated bet on cloud software specifically: when you own SKYY, you own a chunk of the same mega-caps that already sit near the top of a broad technology or S&P 500 fund. That overlap is worth checking against what you already hold. This is descriptive, not a recommendation to buy any particular fund.

WCLD (WisdomTree Cloud Computing) takes the opposite approach. It focuses on emerging, pure software-as-a-service companies and is equal-weighted, meaning each holding gets a similar target weight rather than being dominated by a few giants. As a result WCLD carries little mega-cap hyperscaler exposure and leans toward smaller, faster-growing, often not-yet-profitable cloud software names. Its expense ratio is around 0.45%, the lowest of the three main funds.

The trade-off is volatility. Pure SaaS companies are usually valued on future growth rather than current profit, so they trade at high revenue multiples and swing hard with interest rates, growth expectations, and sentiment. WCLD felt that acutely in the 2022 software drawdown. It is the most direct way to express a view on cloud software as a category, and also the most volatile of the three. This is descriptive, not a prediction.

CLOU (Global X Cloud Computing) is the third major option and lands between SKYY and WCLD in character. It holds companies across cloud infrastructure, platform, and software, including SaaS names, data-center and managed-hosting providers, and some cloud-adjacent hardware. It is not equal-weighted like WCLD, but it does not lean as heavily on mega-cap hyperscalers as SKYY does. Its expense ratio is around 0.68%, the highest of the three.

In practice CLOU gives a broader definition of cloud than a pure SaaS fund while still being more concentrated on cloud-specific names than a hyperscaler-heavy fund. Whether that middle ground fits depends on how much hyperscaler exposure you want and how much you already own elsewhere. None of the three is better in the abstract; they are different points on the same spectrum.

Costs are approximate expense ratios as of mid-2026; verify the current figure on each issuer's site. The key difference is hyperscaler weight: SKYY includes the mega-cap cloud giants and behaves more like big tech, WCLD is equal-weighted pure SaaS and swings harder, and CLOU sits in between. All three cost more than a broad index fund, which is normal for a narrow thematic fund. For the broader picture of cloud and software adoption, you can also explore the cloud computing theme.

Cloud software has been one of the higher-growth corners of the market, but that growth comes with high valuations. Many cloud names trade on future revenue rather than current earnings, so their prices are very sensitive to interest rates and to any slowdown in growth. That is why the pure-SaaS end of the category, and funds like WCLD, can fall sharply in a rate-driven or risk-off environment even when the long-term cloud adoption story is intact. A strong theme does not remove the volatility.

There is also heavy overlap with AI and broad technology. Cloud infrastructure is the backbone AI models train and run on, so a hyperscaler-heavy fund like SKYY captures part of the AI buildout and holds some of the same mega-caps as AI and broad tech funds. If you already own a total-market, S&P 500, tech, or AI fund, a cloud ETF can double up on those same large companies. For individual cloud and software names behind these funds, see our best cloud stocks guide.

The hard part of cloud is not picking the fund; SKYY, WCLD, and CLOU all express the theme, they just differ in how much hyperscaler weight and volatility they carry. The harder questions are whether a concentrated, high-valuation tech slice belongs in your portfolio at all, how large a slice makes sense, and how much it overlaps with the broad tech and AI exposure you may already own. That depends on your actual holdings, which is where an AI assistant that can reason over them helps.

That is where Walnut fits. It connects your existing brokerage so you can ask, in plain language through Claude, ChatGPT, or a built-in assistant, how a cloud ETF would fit what you already hold, how much a position like SKYY or WCLD overlaps with your existing tech and AI funds, and how the pure-SaaS and hyperscaler versions are doing against the market. Walnut keeps your accounts read-only, so a cloud position is only ever added when you place that order. As something that informs rather than advises, it sizes the question of a cloud sleeve against your real holdings instead of recommending one, because Walnut is not an investment adviser.

Cloud ETFs cover one theme with different mixes. SKYY (First Trust Cloud Computing, around 0.60%) includes mega-cap hyperscalers, so it is steadier and more like big tech. WCLD (WisdomTree Cloud Computing, around 0.45%) is equal-weighted pure SaaS, so it is the most direct and most volatile cloud-software bet. CLOU (Global X Cloud Computing, around 0.68%) sits in between with a broader cloud definition. The main decision is how much hyperscaler exposure you want.

Whichever route, the honest framing is the same: cloud software is high-growth but high-valuation and volatile, and it overlaps heavily with AI and broad tech, so a cloud ETF is usually sized as a thematic slice and checked for overlap with what you already own. From a connected account you can dig into any of these as an ETF, or compare a cloud fund against the rest of your portfolio. Holdings, fees, and availability change; treat the specifics here as a starting point and confirm on each provider's site before deciding. For the full category map, see our best ETF in every category guide.