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SKYY - ETF AI Analysis
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First Trust Cloud Computing ETF (SKYY)
Rating:68Neutral
Price Target:
$144.00
Positive Factors
Strong Top Holdings
Several key positions, such as Oracle and CoreWeave, have delivered strong year-to-date gains, supporting the fund's overall performance.
Technology Focus
The ETF's heavy exposure to the technology sector benefits from the strong growth trends in cloud computing and innovation.
Healthy Year-to-Date Performance
The fund has shown solid year-to-date growth, indicating positive momentum in its holdings.
Negative Factors
High Geographic Concentration
The ETF is almost entirely focused on U.S. companies, limiting diversification across global markets.
Sector Over-Concentration
With nearly 86% of its portfolio in technology, the fund is highly exposed to risks specific to this sector.
Relatively High Expense Ratio
The ETF's expense ratio is higher than many comparable funds, which could reduce net returns over time.
SKYY vs. SPDR S&P 500 ETF (SPY)
AUM2.99B
RegionNorth America
Expense Ratio0.60%
Beta1.48
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. Volume390,181
30 Day Avg. Volume216,553
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
163.75Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering65
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SKYY Summary
The First Trust Cloud Computing ETF (SKYY) is an investment fund that focuses on companies in the fast-growing cloud computing industry. It tracks the ISE Cloud Computing Index and includes well-known tech leaders like Microsoft and Amazon, as well as other firms driving innovation in cloud-based services and infrastructure. This ETF is a great option for investors looking to benefit from the global shift to digital transformation and the increasing reliance on cloud technology. However, since SKYY is heavily focused on technology, its performance can be affected by market ups and downs in the tech sector.
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
The SKYY ETF is heavily concentrated in the technology sector, with cloud computing giants like Alphabet and IBM driving steady performance thanks to their strong focus on AI and cloud services. MongoDB has been rising recently, benefiting from bullish momentum and improved guidance, while Oracle and Microsoft are lagging due to bearish technical indicators and valuation concerns. Amazon’s mixed results reflect short-term weakness despite growth in AWS. Overall, the fund’s U.S.-centric portfolio leans heavily into cloud innovation, but some names are struggling to keep pace with the sector’s rapid evolution.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Alphabet Class A | 5.49% | $160.79M | $3.62T | 81.88% | 80 Outperform | |
| International Business Machines | 4.76% | $139.55M | $278.03B | 33.40% | 77 Outperform | |
| Pure Storage | 3.94% | $115.38M | $25.76B | 51.72% | 72 Outperform | |
| Amazon | 3.76% | $110.10M | $2.36T | 11.96% | 71 Outperform | |
| Microsoft | 3.63% | $106.45M | $3.51T | 13.22% | 73 Outperform | |
| Oracle | 3.43% | $100.41M | $566.62B | 3.36% | 64 Neutral | |
| Lumen Technologies | 3.40% | $99.57M | $7.78B | -3.68% | 51 Neutral | |
| Arista Networks | 3.35% | $98.25M | $147.88B | 15.56% | 83 Outperform | |
| Nutanix | 3.34% | $97.94M | $15.60B | -21.26% | 57 Neutral | |
| MongoDB | 3.31% | $96.88M | $26.13B | -3.40% | 65 Neutral |
SKYY Technical Analysis
Negative
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Price Trends
135.36
Negative
129.55
Negative
120.66
Positive
Market Momentum
-2.78
Positive
30.07
Neutral
8.63
Positive
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 135.35, equal to the 50-day MA of 135.36, and equal to the 200-day MA of 120.66, indicating a neutral trend. The MACD of -2.78 indicates Positive momentum. The RSI at 30.07 is Neutral, neither overbought nor oversold. The STOCH value of 8.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYY.
SKYY Peer Comparison
Comparison Results
Performance Comparison
SKYY
First Trust Cloud Computing ETF
124.45
0.79
0.64%
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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XSD
SPDR S&P Semiconductor ETF
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XNTK
Spdr Nyse Technology 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.
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: ―
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