SKYY - ETF AI Analysis
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First Trust Cloud Computing ETF (SKYY)
Rating:66Neutral
Price Target:―
Positive Factors
Strong Cloud-Focused Holdings
Several of the largest positions, including Arista Networks, Cloudflare, and DigitalOcean, have shown strong performance, helping support the ETF’s recent gains.
Recent Performance Momentum
The fund’s returns over the last three months and the past month have been solid, indicating positive short-term momentum in its cloud computing theme.
Clear Technology Focus
With most assets in technology and related sectors, the ETF offers targeted exposure to the growth potential of cloud computing companies.
Negative Factors
High Sector Concentration
More than three-quarters of the portfolio is in technology, which means the fund can be highly sensitive to downturns in the tech sector.
Underperforming Major Holdings
Some large positions like Microsoft, MongoDB, and IBM have shown weak performance year-to-date, which can drag on overall returns.
Higher Expense Ratio
The ETF’s fee is on the higher side compared with many broad market index funds, which slightly reduces the net return investors receive over time.
SKYY vs. SPDR S&P 500 ETF (SPY)
AUM3.32B
RegionNorth America
Expense Ratio0.60%
Beta1.45
IssuerFirst Trust
Inception DateJul 05, 2011
Dividend YieldN/A
Asset ClassEquity
Index TrackedISE Cloud Computing Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume195,152
30 Day Avg. Volume280,056
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
195.30Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering63
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SKYY Summary
The First Trust Cloud Computing ETF (SKYY) follows the ISE Cloud Computing Index and focuses on companies that power cloud technology, mainly in the U.S. tech sector. It holds well-known names like Amazon, Microsoft, Alphabet (Google), and IBM, along with smaller cloud-focused firms. Someone might invest in SKYY to tap into the long-term growth of cloud computing and to get instant diversification across many cloud-related companies instead of picking individual stocks. A key risk is that it is heavily concentrated in technology, so its price can rise or fall sharply with swings in the tech sector and overall stock market.
How much will it cost me?The First Trust Cloud Computing ETF (SKYY) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a specific sector, requiring more research and management effort. It’s designed to give investors targeted exposure to the cloud computing industry.
What would affect this ETF?The First Trust Cloud Computing ETF (SKYY) could benefit from the ongoing global shift towards digital transformation and increased adoption of cloud-based solutions, which drive growth in its core sector of Information Technology. However, potential risks include rising interest rates that may negatively impact technology valuations, regulatory scrutiny on major tech companies like Microsoft and Amazon, and economic slowdowns that could reduce corporate spending on cloud services.
SKYY Top 10 Holdings
SKYY is essentially a pure play on cloud and software, with its heavy tilt toward U.S. tech names setting the tone. Arista Networks, Pure Storage, and Nutanix have been rising, acting as the main engines for recent gains, while Microsoft and Atlassian add steady, if slightly mixed, support. On the flip side, MongoDB and IBM are losing steam, quietly dragging on performance despite their cloud ambitions. With most of its weight in U.S.-listed software and infrastructure players, SKYY is a focused bet on the ongoing shift to cloud computing.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nutanix | 4.30% | $142.67M | $18.57B | -10.48% | 62 Neutral | |
| Arista Networks | 4.04% | $133.95M | $249.14B | 38.29% | 83 Outperform | |
| Everpure | 4.00% | $132.75M | $32.53B | 13.78% | 64 Neutral | |
| Microsoft | 3.55% | $117.76M | $3.64T | -2.10% | 79 Outperform | |
| MongoDB | 3.05% | $101.07M | $30.32B | 19.33% | 75 Outperform | |
| Amazon | 2.96% | $98.27M | $2.65T | 6.19% | 71 Outperform | |
| Alphabet Class A | 2.94% | $97.48M | $4.17T | 37.81% | 85 Outperform | |
| Cloudflare | 2.92% | $96.78M | $115.60B | 51.79% | 61 Neutral | |
| Atlassian | 2.88% | $95.61M | $48.17B | 10.47% | 66 Neutral | |
| International Business Machines | 2.60% | $86.24M | $223.75B | -10.28% | 79 Outperform |
SKYY Technical Analysis
Positive
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Price Trends
152.47
Positive
142.56
Positive
130.93
Positive
Market Momentum
2.20
Positive
59.52
Neutral
77.59
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SKYY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 161.25, equal to the 50-day MA of 152.47, and equal to the 200-day MA of 130.93, indicating a bullish trend. The MACD of 2.20 indicates Positive momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYY.
SKYY Peer Comparison
Comparison Results
Performance Comparison
SKYY
First Trust Cloud Computing ETF
162.02
24.65
17.94%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
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QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
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SOXQ
Invesco PHLX Semiconductor ETF
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XSD
SPDR S&P Semiconductor ETF
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FXL
First Trust Technology AlphaDEX Fund
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis 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.Date of analysis: ―
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