WisdomTree Cloud Computing ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and an underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Q2 Hld

DocuSign

Zuora

Block

Squarespace

PayPal

Okta

HubSpot

BlackLine

Toast

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. WisdomTree Cloud Computing ETF earns an Above Average Process Pillar rating. The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.4 stars, also bolsters the rating. Lastly, the process is limited by the instability of talent across its parent firm. The firm's asset-weighted manager tenure of three years suggests it could do more to retain portfolio managers.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the price and yield performance, before fees and expenses, of the BVP Nasdaq Emerging Cloud Index.  Under normal circumstances, and at least 80% of the fund’s total assets (exclusive of collateral held from securities lending) will be invested in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is designed to track the performance of emerging public companies primarily involved in providing cloud computing software and services to their customers. It is non-diversified. 

 The portfolio is overweight in technology by 15.0 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 7.8 and 4.4 percentage points of assets, respectively. The strategy owns 67 securities and is less top-heavy than peers. Specifically, 16.9% of the strategy's assets are concentrated within the top 10 fund holdings, compared to the category’s 52.3% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 41% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

WisdomTree’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There’s a sizable bench of five managers listed on the fund. Together, they manage a total of 113 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

WisdomTree is improving, but its shaky global fund lineup and uncertain trajectory hold its rating to Below Average. 

WisdomTree’s research organization has long been a strength. Under CIO Jeremy Schwartz, the team has generated creative, economically sound ideas and evolved them into investable products, like the efficient core series. A recent focus on investor education spawned the Portfolio Analysis Tools Hub, an online platform that taps the team’s brainpower to help investors make better investment decisions.

The firm’s product lineup is a mixed bag. To complement its core lineup of fundamentally weighted strategies, WisdomTree has recently launched funds targeting established factors instead of trendy themes—an encouraging reorientation. Yet the shutdown of WisdomTree U.S. Growth and Momentum ETF calls WisdomTree’s commitment to these funds into question, and vestiges from its laxer product-development era look ripe for closure. Its European lineup features risky trading tools that are hard for investors to use well. 

WisdomTree’s future may hinge on WisdomTree Prime, its blockchain-based digital wallet. The launch reflects founder and CEO Jonathan Steinberg’s conviction in the disruptive potential of the blockchain. Prime shouldn’t hurt WisdomTree fund investors (most funds on the platform are zero-fee), but it may distract the firm from shoring up its core offering.

Below Average

Parent

WisdomTree Cloud Computing Fund

WCLD tracks and index of US companies primarily focused on cloud software and services. Stocks are equal weighted in the index.

Direxion Daily Cloud Computing Bull 2X Shares

Global X Cloud Computing ETF

Fidelity Cloud Computing ETF

ProShares Ultra Nasdaq Cloud Computing ETF

First Trust Cloud Computing ETF

ProShares Ultra Nasdaq Cybersecurity

Simplify Volt Cloud and Cybersecurity Disruption ETF

Amazon's cloud unit plans to recruit employees next year.

Time for Cloud ETFs Following Amazon's Recent Hiring Move?

Amplify Cybersecurity ETF

ProShares UltraPro Short QQQ

Technology Select Sector SPDR Fund

There are some bright spots in the space that could lift it out of its doldrums.

Will Tech Rebound Last?

ARK Innovation ETF

First Trust NASDAQ-100 Technology Sector Index Fund

VanEck Vectors Semiconductor ETF

Global X Social Media ETF

While the rally was broad-based, the technology sector led the way higher, with most ETFs gaining in double digits.

5 Tech ETFs At the Heart of Last Week's Rally

salesforce.com

CrowdStrike

Fortinet

MongoDB

Cloudflare

ServiceNow

Palo Alto Networks

Snowflake

Atlassian

Twilio

Workday

The lining in cloud-software stocks Friday was blood red instead of silver.

The cloudburst is upon us: Cloud-software stocks suffering worst declines on record

Global X Blockchain ETF

VanEck Vectors Digital Transformation ETF

iShares Cybersecurity and Tech ETF

Invesco Dynamic Networking ETF

Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF

ProShares Nanotechnology ETF

Big tech has just experienced an awful week. But blockchain, networking, digital payments and cyber security snapped that losing trend and logged massive gains.

Tech ETF Winners Amid Big Tech's Acute Slump Last Week

The article lays out an argument to invest in software stocks against a top-down view and historical context. With deteriorating macro factors (inflation, interest rates, and geopolitics), the sector has sold off drastically.

Why It's The Best Time To Invest In Software In Years

BVP Nasdaq Emerging Cloud Index is a measure of the performance of cloud companies because it is designed to offer a precise exposure to cloud companies growing revenues by serving enterprise customers. The weighted average sales growth for the BVP Nasdaq Emerging Cloud Index is still in the range of 35%-40%, where it has been with some consistency for some time.

Cloud Computing Continues To Exhibit Strong Growth In 2022

Amplify Global Cloud Technology ETF

Microsoft

Cloud computing is seeing an increasing usage globally as it enables data interoperability in a scalable and cost-efficient way through data collection, processing and analysis.

A Detailed Guide to Cloud Computing ETFs

Smaller cloud computing companies may offer more attractive valuations for investors.

Cloud Computing Strength Doesn't Extend to Cloud ETFs

Global X Cybersecurity ETF

Direxion Moonshot Innovators ETF

WisdomTree Cybersecurity Fund

Franklin Exponential Data ETF

There could be a sustained tech rally, per CNBC's Jim Cramer. Here's why.

Could a Sustained Tech ETF Rally Be in the Cards?

The technology sector has been hit particularly hard this year, with many of the growth drivers of the last five years falling in the pivot to value. Cloud computing has been heavily impacted by the macro-environment.

Cloud Computing is Down but Not Out: Investing With WCLD

ARK Genomic Revolution Multi-Sector ETF

ARK Web x.0 ETF

Virtus LifeSci Biotech Clinical Trials ETF

Renaissance IPO ETF

SPDR S&P Biotech ETF

The S&P 500 advanced more than 3% on Friday, logging back-to-back days of gains and marking its first weekly advance since late May.

ETFs Winners of S&P 500's Second Best Week in 2022

UiPath

UiPath surged after raising its guidance, and the basket of cloud software stocks had one of its best days of a very rough year.

Cloud stocks mount big rally led by UiPath, as investors bet tech valuations have bottomed

iShares U.S. Home Construction ETF

First Trust NASDAQ Clean Edge Green Energy Index Fund

Consumer Discretionary Select Sector SPDR Fund

The beaten-down prices offer a solid buying opportunity for investors. We have highlighted five ETFs from different sectors that have declined more than 25% this year but have a solid Zacks ETF Rank #1 or 2.

5 Beaten-Down ETFs to Buy at Attractive Prices

Since my previous article, WCLD lost ~17.5% vs a loss of ~3.5% for the S&P 500 and has clearly underperformed the market. Despite this pullback, WCLD still trades at over 60x earnings, which makes it expensive in my opinion.

WCLD: Cloud Stocks Are Still Overvalued

Software stocks are among the most repudiated names in the tech space this year. Not surprisingly, that trend is weighing on cloud computing equities and the related exchange traded funds.

Cloud Computing ETF Could Be Dip-Buyable

iShares U.S. Insurance ETF

iShares Transportation Average ETF

Let us examine the health of the U.S. economy this World Health Day and bring to investors' attention the key developments and some solid picks for a robust investment portfolio.

Diagnosis of Economy on Health Day: 6 ETFs That Look Fit

Proshares Online Retail ETF

Wall Street staged a strong comeback with the major bourses notching the biggest weekly gain in 16 months.

Wall Street Had the Best Week Since Nov 2020: 5 ETF Winners

iShares North American Tech-Software ETF

iShares Russell Mid-Cap Growth ETF

U.S. stocks are currently on sale compelling investors to buy on the dip.

5 Top-Ranked ETFs on Sale

The WisdomTree Cloud Computing Fund (WCLD) follows the BVP Nasdaq Emerging Cloud Index, but simply because this cloud computing exchange traded fund is passively managed that doesn't mean it's not dynamic at the holdings level. WCLD, which launched in September 2019, rebalances on a semiannual basis, and over its two-plus years on the market, the [.

Slew of Additions Arrive in WCLD Cloud Computing ETF

WCLD provides exposure to a basket of fast-growing US-listed companies that are primarily focused on cloud software and services.

WCLD: Cheaper ETFs Exist To Ride This Megatrend

iShares North American Tech-Multimedia Networking ETF

Invesco DWA Technology Momentum ETF

SPDR NYSE Technology ETF

SPDR S&P Semiconductor ETF

We have chosen five ETFs that are down by double digits from a year-to-date look and boast a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).

5 Top-Ranked Tech ETFs to Buy at Bargain Price

Barely more than a month into 2022, and investors already know that technology is a source of weakness. Specifically, it's high-growth, richly valued, and, in some cases, unprofitable companies that are dragging on the sector.

Patience Will Be a Virtue With Cloud Stocks, ETFs

By Kara Marciscano, CFA Associate, Research In late November, Federal Reserve chair Jerome Powell hinted at an accelerated wind-down of the Fed's easy-money policy. Since that announcement, Treasury yields have pushed higher, reflecting expectations that in early 2022, the Fed will begin raising its policy rate for the first time since 2018.

WisdomTree Megatrends: A Pulse Check on Valuations as Interest Rates Rise

Asana

Shopify

Zoom Video

The Federal Reserve's move toward raising rates is pushing investors out of cloud stocks, which soared in recent years, and in search of safer assets.

News for WisdomTree Cloud Computing Fund ETF (WCLD)