SKYY - ETF AI Analysis
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First Trust Cloud Computing ETF (SKYY)
SKYY’s rating suggests it is a solid but not top-tier cloud computing ETF, supported by strong leaders like Microsoft, Alphabet, and Arista Networks, which benefit from robust growth in cloud and AI and generally positive technical trends. However, weaker holdings such as Netskope and more financially stretched names like Nutanix and DigitalOcean, along with some high valuations and leverage across several positions, introduce risk and help explain why the fund’s rating is not higher, especially given its focused exposure to the cloud sector.
SKYY vs. SPDR S&P 500 ETF (SPY)
- AUM
- 3.30B
- Region
- North America
- Expense Ratio
- 0.60%
- Beta
- 1.47
- Issuer
- First Trust
- Inception Date
- Jul 05, 2011
- Dividend Yield
- 0.52%
- Asset Class
- Equity
- Index Tracked
- ISE Cloud Computing Index
SKYY Summary
The First Trust Cloud Computing ETF (SKYY) is a fund that follows the ISE Cloud Computing Index and focuses on companies that build and run cloud services. It mainly holds U.S. technology firms that provide online software, data storage, and digital infrastructure. Well-known names in the fund include Microsoft, Amazon, Alphabet (Google), IBM, and Oracle. Someone might invest in SKYY to tap into the long-term growth of cloud computing and to get a mix of leading and smaller cloud companies in one investment. A key risk is that it is heavily concentrated in tech stocks, so its price can rise and fall sharply with the technology sector.
How much will it cost me?
SKYY has an expense ratio of 0.60%, which means you’ll pay about $6 per year for every $1,000 invested. This is higher than the average ETF because it’s a specialized, sector-focused fund that requires more active management to track the cloud computing industry.
What would affect this ETF?
SKYY could benefit if businesses keep shifting more of their operations to the cloud, boosting demand for major U.S. tech names like Microsoft, Amazon, Alphabet, IBM, and other software and infrastructure providers in the fund. On the downside, higher interest rates, slower economic growth, or tighter tech regulations could hurt investor appetite for growth-focused cloud companies and make this concentrated technology ETF more volatile.
SKYY Top 10 Holdings
SKYY is essentially a pure play on cloud and software, with heavy exposure to U.S. tech names. Microsoft and Amazon are the steady engines here, with their cloud businesses quietly pushing the fund higher. Arista Networks and DigitalOcean add more punch, with Arista rising on AI networking demand and DigitalOcean surging despite some financial growing pains. On the flip side, Alphabet has been lagging lately, and Oracle’s cloud story is losing steam, acting as a brake. Overall, SKYY is tightly wired to the fortunes of cloud and AI infrastructure.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 P | Everpure | 4.51% | $143.83M | $42.31B | 19.32% | 64Neutral |
 IBM | International Business Machines | 3.97% | $126.86M | $243.66B | -17.95% | 79Outperform |
 MSFT | Microsoft | 3.68% | $117.46M | $3.88T | 0.77% | 79Outperform |
 NTNX | Nutanix | 3.46% | $110.40M | $18.33B | -9.11% | 62Neutral |
 AMZN | Amazon | 3.48% | $111.10M | $2.59T | -1.30% | 71Outperform |
 ORCL | Oracle | 2.94% | $93.94M | $395.11B | -51.06% | 66Neutral |
 ANET | Arista Networks | 3.09% | $98.55M | $212.97B | 7.82% | 83Outperform |
 GOOGL | Alphabet Class A | 3.03% | $96.60M | $3.41T | -1.30% | 85Outperform |
 DOCN | DigitalOcean Holdings | 2.99% | $95.31M | $10.54B | 118.44% | 73Outperform |
 NTSK | Netskope, Inc. | 2.65% | $84.42M | $9.93B | -9.98% | 47Neutral |
SKYY Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SKYY, the sentiment is Negative. The current price of 155.98 is below the 20-day moving average (MA) of 166.90, below the 50-day MA of 164.67, and above the 200-day MA of 136.66, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 24.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYY.
SKYY Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| SKYY | $155.98 | $181.00(16.04% Upside) | $3.30B | 0.60% | 66Neutral |
 RSPT | $61.99 | $79.39(28.07% Upside) | $5.94B | 0.40% | 71Outperform |
 QTEC | $288.12 | $398.97(38.47% Upside) | $4.33B | 0.55% | 72Outperform |
 SOXQ | $83.45 | $123.20(47.63% Upside) | $2.77B | 0.19% | 74Outperform |
 FXL | $210.32 | $267.10(27.00% Upside) | $2.68B | 0.60% | 69Neutral |
 XSD | $455.24 | $654.88(43.85% Upside) | $2.44B | 0.35% | 64Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SKYY | First Trust Cloud Computing ETF | 155.98 | 17.49 | 12.63% | |
| RSPT | Invesco S&P 500 Equal Weight Technology ETF | 61.99 | 16.14 | 35.21% | |
| QTEC | First Trust NASDAQ-100 Technology Sector Index Fund | 288.12 | 50.47 | 21.23% | |
| SOXQ | Invesco PHLX Semiconductor ETF | 83.45 | 27.07 | 48.01% | |
| FXL | First Trust Technology AlphaDEX Fund | 210.32 | 38.00 | 22.05% | |
| XSD | SPDR S&P Semiconductor ETF | 455.24 | 116.89 | 34.55% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.