I?m usually suspicious of ?theme ETFS? like the new Cloud Computing Index Fund (SKYY). I use the term ?theme-based? because cloud computing isn?t really a sector. After all, you?d be hard pressed to find any technology, entertainment, e-commerce or media company that doesn?t benefit from the growing use of remote applications and data.
Yet the companies in this ETF represent a really interesting portfolio ? including a diversified basket of some of the smaller storage, software and Internet infrastructure companies that might be too risky to consider as individual stocks.
In fact, I suspect that it?s the smaller stocks in the portfolio that will generate outsized returns.
Although the fund is structured using a modified equal weighting method, First Trust?s description of the methodology adds a bit of a twist. It appears that ?pure play,? ?non-pure play? and ?conglomerates? may be weighted differently ? and as of July 7, it
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Carrie Underwood Rosario Dawson Tricia Helfer Elena Lyons Brooke Burns
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