First Trust Global Portfolios (FTGP) has expanded its thematics range with the launch of a cloud computing ETF.
The First Trust Cloud Computing UCITS ETF (FSKY) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.6%.
Tracking the ISE Cloud Computing index, the ETF offers investors exposure to companies actively involved in the cloud computing industry.
Companies in the index are split into three segments; 'pure play cloud computing companies' are direct service providers for 'the cloud', actively supporting and forming the technology; 'non-pure play cloud computing companies' focus outside the cloud computing space but provide goods and services while 'technology conglomerate cloud computing companies' indirectly utilise and support the use of cloud computing technology.
In order to be included in the index, a security must have a market cap of at least $100m and be listed on an index-eligible global stock exchange.
Only 10% of the index is weighted to technology conglomerate companies" while the allocation to non-pure play companies is calculated by dividing the non-pure play companies' market capitalisation by the sum of the pure-play and non-pure play market capitalisations.
The index is made up of 28 companies; 17 pure play, seven non-pure play and four tech conglomerate businesses.
Companies are equally weighted within each of the three classifications with the index rebalancing semi-annually.
Gregg Guerin, senior product specialist at FTGP, commented: "Cloud Computing is the simple idea of moving complex computer tasks into shared, decentralised services, enabling people to store and access data from almost any location in the world, which continues to rapidly gain momentum.
"Providing exposure to pure-play and non-pure play companies (i.e. those operating as direct services providers and those providing goods and services that use cloud computing technology), as well as investing in four key technology conglomerate companies, creates an exciting investment opportunity."
The firm unveiled a number of thematic products last year, including Europe's first blockchain ETF in April and an internet ETF in June.