SKYY - ETF AI Analysis
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First Trust Cloud Computing ETF (SKYY)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Cloud Leaders in Top Holdings
Several major positions like Arista Networks, CoreWeave, Amazon, and DigitalOcean have shown strong gains, helping support the fund’s overall results.
Focused Cloud Computing Exposure
The ETF concentrates on cloud-related technology companies, giving investors targeted access to a key long-term growth theme.
Meaningful Asset Base
The fund manages a sizable pool of assets, which can help trading liquidity and signal ongoing investor interest in the strategy.
Negative Factors
High Sector Concentration in Technology
With most of the portfolio in technology stocks, the fund is highly sensitive to downturns in the tech sector.
Mixed Performance Among Top Holdings
Some large positions such as Oracle, Microsoft, Nutanix, and IBM have shown weaker recent performance, which has weighed on the ETF’s year-to-date results.
Relatively High Expense Ratio
The fund’s fee is on the higher side for an ETF, which can gradually reduce net returns for long-term investors.
SKYY vs. SPDR S&P 500 ETF (SPY)
AUM2.89B
RegionNorth America
Expense Ratio0.60%
Beta1.37
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. Volume241,707
30 Day Avg. Volume370,662
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
169.34Price 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 and Microsoft, along with other firms that provide cloud infrastructure and software services. Someone might invest in SKYY to tap into the long-term growth of cloud computing as more businesses move their operations online and into the cloud. However, this ETF is heavily concentrated in technology stocks, so its price can swing up and down more than the overall 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 very much a bet on the cloud and AI backbone, with a heavy tilt toward U.S. tech and software names. High-flyers like Arista Networks and CoreWeave are doing the heavy lifting, riding strong momentum in cloud infrastructure and AI workloads. DigitalOcean is also rising, adding a boost from the smaller-business side of the cloud. On the flip side, big platforms like Microsoft, MongoDB, and Amazon have been more mixed or lagging lately, occasionally putting a lid on gains even as the broader cloud theme stays firmly in charge.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Arista Networks | 4.17% | $117.60M | $201.46B | 67.60% | 83 Outperform | |
| Nutanix | 3.86% | $108.96M | $13.86B | -31.91% | 62 Neutral | |
| International Business Machines | 3.86% | $108.86M | $272.12B | 5.41% | 79 Outperform | |
| Everpure | 3.75% | $105.81M | $24.17B | 38.48% | 64 Neutral | |
| Alphabet Class A | 3.70% | $104.28M | $4.34T | 110.50% | 85 Outperform | |
| Amazon | 3.46% | $97.64M | $2.61T | 12.14% | 71 Outperform | |
| MongoDB | 3.41% | $96.20M | $28.54B | 70.42% | 75 Outperform | |
| Microsoft | 3.30% | $92.97M | $2.90T | -22.12% | 79 Outperform | |
| DigitalOcean Holdings | 3.23% | $91.17M | $13.58B | 355.04% | 73 Outperform | |
| Cloudflare | 2.62% | $73.86M | $86.09B | 28.39% | 61 Neutral |
SKYY Technical Analysis
Positive
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Price Trends
132.65
Positive
122.37
Positive
126.50
Positive
Market Momentum
1.02
Negative
59.01
Neutral
87.92
Negative
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 133.58, equal to the 50-day MA of 132.65, and equal to the 200-day MA of 126.50, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 87.92 is Negative, 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
138.85
17.50
14.42%
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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SOXQ
Invesco PHLX 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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