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Fidelity Cloud Computing ETF targets cloud-service stocks across markets
The fund charges 39 basis points to track the Fidelity Cloud Computing Index and returned 36.4% over the past year on a NAV basis, ahead of its benchmark’s 23.7%.
ETF Trends highlights Fidelity Investments’ Fidelity Cloud Computing ETF, known as FCLD, as a thematic option for investors looking beyond traditional tech sector exposure. The outlet notes that cloud computing is a cross-sector theme and that thematic ETFs can span developed and emerging market companies rather than staying confined to a single industry slice.
FCLD tracks the Fidelity Cloud Computing Index using a market cap weighted approach. The index focuses on companies that provide or enable cloud computing services, including firms with at least 50% of revenue tied to cloud computing, spanning infrastructure, platforms, and software.
ETF Trends says the fund’s strategy includes both developed and emerging markets companies. The ETF charges a 39 basis point fee and, according to Fidelity data cited by the outlet, generated a 36.4% return over the last one year on a NAV basis.
The article also points to FCLD’s role in portfolio construction. It notes investors can pair thematic funds with other innovation themes, such as combining FCLD with Fidelity’s Fidelity Electric Vehicles and Future Transportation ETF (FDRV), to pursue different AI related exposures while limiting added megacap concentration.