First Trust launches niche fund focused on cloud computing.
First Trust, the Wheaton, Ill.-based money management firm behind the First Trust Dow Jones Internet Fund (NYSEArca: FDN), todayla unched an ETF focused on cloud computing, a growing piece of the world of technology.
The First Trust ISE Cloud Computing Index Fund will be trade under the symbol “SKYY” on Nasdaq, where the company is ringing the opening bell today. The ETF will be based on the ISE Cloud Computing Index. The fund will include companies actively involved in the cloud computing industry, according to a filing the company made with the Securities and Exchange Commission on April 20.
Cloud computing refers to computer users accessing many different servers to meet their needs, as opposed to using centralized computing resources. Companies such as Amazon with immense computing resources that go beyond internal demands have become big players in the expanding world of cloud computing.
The proposed fund recalls the niche quality of the First Trust Nasdaq CEA Smartphone Index Fund (NasdaqGM: FONE) that the firm launched in February of this year. FONE has gathered almost $16.5 million in assets, according to data compiled by IndexUniverse. Its Internet ETF, FDN, has more than $750 million in assets.
SKYY comes with an annual expense ratio of 0.60 percent.