WisdomTree cross-lists growth-tilted cloud computing ETF

Oct 7th, 2019 | By | Category: Equities

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WisdomTree has cross-listed the WisdomTree Cloud Computing UCITS ETF on Borsa Italiana and Deutsche Börse Xetra.

WisdomTree cross-lists growth-tilted cloud computing ETF on Borsa Italiana

WisdomTree has cross-listed the WisdomTree Cloud Computing UCITS ETF on Borsa Italiana.

The thematic equity ETF provides exposure to a globally diversified portfolio of high-growth companies that are poised to benefit from developments in cloud computing.

Cloud computing refers to shared pools of configurable computer system resources and higher-level services that can be rapidly provisioned with minimal management effort, often over the internet.

Through the delivery of computing services via the internet – from servers, storage, databases, networking, and software – cloud computing has helped fuel technological expansion by enhancing global accessibility and unveiling new ways to grow businesses.

Methodology

The ETF tracks the BVP Nasdaq Emerging Cloud Index, an index created by exchange operator and indexer Nasdaq in collaboration with venture capital firm Bessemer Venture Partners (BVP). BVP has more than two decades of experience investing in cloud-related companies.

The index selection process starts with an initial universe of US-listed firms and American Depository Receipts with market capitalizations greater than $500 million and average daily trading values of at least $5m.

BVP then uses its proprietary research to identify companies linked to the cloud computing theme. To qualify, firms must derive the majority of their revenue from business-oriented software products which are provided to customers through a cloud delivery model (i.e. hosted on remote and multi-tenant server infrastructure, accessed through a web browser or mobile device, or consumed as an API) and provided to customers through a cloud economic model (as a subscription-based, volume-based, or transaction-based offering).

The methodology then employs a screen to identify those qualifying cloud-related companies that have grown their revenues by at least 15% in each of the past two fiscal years. These companies make up the final index composition and provide the fund with an explicit growth tilt.

Constituents are equally weighted and rebalanced semi-annually in February and August. To reduce portfolio turnover, a constituent can maintain its place in the index as long as it continues to meet the revenue-relevance requirement and has recorded annual revenue of at least 7% in at least one of the last two fiscal years.

The fund trades in euros on Borsa Italiana and Xetra under the tickers WCLD IM and WTEJ GR. It is also listed on London Stock Exchange in US dollars (WCLD LN) and pound sterling (KLWD LN). Income is capitalised within the portfolio.

With an expense ratio of 0.40%, the fund is the cheapest cloud computing ETF listed in Europe.

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