Active Cloud Computing ETF Debuts

AdvisorShares rolls out a fund targeting the cloud computing space.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Today AdvisorShares rolled out an actively managed ETF that targets companies that use or plan to use digital and cloud computing technologies. The AdvisorShares SabreTooth ETF (BKCH) in particular will focus on firms using such technology to accomplish goals including streamlining data transfers, cost reductions and increased revenue, according to the prospectus.

BKCH come with an expense ratio of 0.85% and lists on the Nasdaq exchange.

The fund generally invests in U.S.-listed equities, American depositary receipts and preferred stocks, with its managers taking a quantitative approach and basing their decisions on such criteria as rising market capitalization, forward guidance, momentum and technical levels, the document says. 

Currently, the largest cloud computing ETF on the market is the First Trust Cloud Computing ETF (SKYY), which has $1.9 billion in assets under management and which launched in 2011. It charges 0.60% in expense ratio. Recently, however, Tortoise rolled out the Tortoise Cloud Infrastructure Fund (TCLD), which tracks an index and charges 0.40% in expense ratio.

Contact Heather Bell at [email protected]

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.