SKYY - ETF AI Analysis

Top Page

First Trust Cloud Computing ETF (SKYY)

Rating:68Neutral

Price Target:―

SKYY, the First Trust Cloud Computing ETF, earns a solid overall rating thanks to strong contributions from major holdings like Alphabet, Arista Networks, Microsoft, and IBM, which all benefit from robust financial performance, positive earnings outlooks, and strategic focus on AI and cloud growth. The fund is held back somewhat by names such as Nutanix and Oracle, where high leverage, bearish technical trends, and valuation concerns introduce added risk. Investors should also be aware that the ETF is heavily focused on cloud and AI-related companies, which concentrates its exposure in a single growth-oriented segment of the market.

Positive Factors

Large Asset Base

The fund manages a sizable pool of assets, which can support liquidity and trading efficiency for investors.

Leading Cloud and Tech Holdings

Top positions include well-known technology and cloud companies, some of which have shown strong or steady performance this year.

Focused Cloud Computing Exposure

The ETF offers targeted exposure to the cloud computing theme, which many investors view as a long-term growth area within technology.

Negative Factors

Recent Weak Performance

The fund has experienced weak returns over the past month, three months, and year-to-date, which may concern performance-focused investors.

High Sector Concentration in Technology

With most assets in the technology sector, the ETF is highly sensitive to downturns in tech stocks.

Relatively High Expense Ratio

The fund charges a higher fee than many broad-market ETFs, which can modestly reduce net returns over time.

SKYY vs. SPDR S&P 500 ETF (SPY)

AUM2.39B

RegionNorth America

Expense Ratio0.60%

Beta1.38

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. Volume471,981

30 Day Avg. Volume261,365

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

147.19

Price 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) tracks the ISE Cloud Computing Index and focuses on companies that power cloud technology, mainly in the U.S. It holds well-known names like Amazon, Microsoft, Alphabet (Google), IBM, and Oracle, 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 leading tech companies instead of picking individual stocks. However, this ETF is heavily concentrated in technology, so its price can be quite volatile and may fall sharply if tech stocks struggle.

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 firmly anchored in U.S. cloud and software names, with a clear tilt toward big infrastructure and platform players. Arista Networks and Alphabet have been relatively steady pillars, helping to prop up returns as they ride ongoing demand for AI-driven cloud services. CoreWeave adds a high-growth, higher-volatility edge that can swing results in either direction. On the flip side, Microsoft and Amazon—normally cloud royalty—have been losing steam lately, while MongoDB and Nutanix are lagging, turning this tech-heavy, cloud-focused ETF into more of a bumpy ride than a smooth ascent.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ANET	Arista Networks	4.49%	$107.34M	$167.84B	59.94%	83 Outperform
GOOGL	Alphabet Class A	4.15%	$99.15M	$3.65T	82.66%	85 Outperform
CRWV	CoreWeave	4.06%	$97.08M	$42.64B	―	51 Neutral
AMZN	Amazon	3.91%	$93.51M	$2.23T	4.91%	71 Outperform
NTNX	Nutanix	3.61%	$86.32M	$10.42B	-43.44%	62 Neutral
MSFT	Microsoft	3.53%	$84.43M	$2.94T	1.80%	79 Outperform
AKAM	Akamai	3.52%	$84.21M	$15.60B	33.37%	73 Outperform
IBM	International Business Machines	3.51%	$83.81M	$231.02B	-0.83%	79 Outperform
ORCL	Oracle	3.38%	$80.66M	$446.10B	3.91%	66 Neutral
NET	Cloudflare	3.11%	$74.29M	$74.78B	82.91%	61 Neutral

SKYY Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

118.01

Negative

100DMA

125.66

Negative

200DMA

125.37

Negative

Market Momentum

MACD

-1.35

Negative

RSI

45.07

Neutral

STOCH

71.53

Neutral

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 undefined is equal to the 20-day moving average (MA) of 111.52, equal to the 50-day MA of 118.01, and equal to the 200-day MA of 125.37, indicating a neutral trend. The MACD of -1.35 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 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	―	―	$2.39B	0.60%	68 Neutral
RSPT	―	―	$3.96B	0.40%	71 Outperform
QTEC	―	―	$2.76B	0.55%	74 Outperform
XSD	―	―	$1.61B	0.35%	67 Neutral
XNTK	―	―	$1.50B	0.35%	74 Outperform
FTXL	―	―	$1.47B	0.60%	74 Outperform

Performance Comparison

SKYY

First Trust Cloud Computing ETF

112.56

3.90

3.59%

RSPT

Invesco S&P 500 Equal Weight Technology ETF

―

QTEC

First Trust NASDAQ-100 Technology Sector Index Fund

―

XSD

SPDR S&P Semiconductor ETF

―

XNTK

Spdr Nyse Technology Etf

―

FTXL

First Trust Nasdaq Semiconductor ETF

―

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.

Disclaimer

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.Date of analysis: ―

Table of Contents