US Cloud Computing ETFs: Your 2025 Guide to High-Growth Investments

Introduction: Navigating the Cloud Computing ETF Landscape in the United States for 2025

Cloud computing has become the backbone of modern digital infrastructure, transforming how businesses operate, scale, and innovate across nearly every industry. From streaming services and remote collaboration tools to enterprise data analytics and artificial intelligence, the cloud powers it all. As demand surges and technology evolves, the sector continues to attract significant investor interest-especially in the United States, where innovation and adoption lead globally.

For U.S. investors, cloud computing exchange-traded funds (ETFs) offer a powerful way to gain diversified exposure to this high-growth tech trend. Unlike picking individual stocks, ETFs allow you to invest broadly across the ecosystem-from infrastructure giants like Amazon Web Services to fast-growing software innovators like Zoom and CrowdStrike. This guide breaks down everything you need to know about cloud computing ETFs in 2025: top performers, key risks, how to buy them, and which platforms give American investors the best access.

What Are Cloud Computing ETFs and Why Invest in 2025?

Defining Cloud Computing ETFs

Cloud computing ETFs are investment vehicles that pool capital to buy shares in companies deeply embedded in the cloud ecosystem. These funds typically track an index composed of firms generating significant revenue from cloud-based services, including Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).

SaaS providers deliver applications over the internet-think Salesforce for CRM or Adobe Creative Cloud. PaaS platforms, such as Microsoft Azure and Google Cloud, enable developers to build and deploy apps without managing hardware. IaaS providers like AWS and Oracle Cloud supply virtual servers, storage, and networking infrastructure on demand. By investing in a cloud ETF, U.S. investors gain instant access to a diversified basket of these leading innovators, reducing reliance on any single company while riding the broader wave of digital transformation.

The Growth of Cloud Computing

The cloud computing market isn’t just growing-it’s accelerating. According to Gartner, global end-user spending on public cloud services is projected to exceed $679 billion in 2024, with continued double-digit growth expected through 2025 and beyond. In the U.S., this expansion is fueled by widespread enterprise digitalization, hybrid work models, data-intensive AI applications, and increasing reliance on scalable, secure cloud infrastructure.

Industries ranging from healthcare to finance to retail are migrating workloads to the cloud to improve agility and reduce costs. At the same time, hyperscalers like Amazon, Microsoft, and Google are investing billions in data centers and edge computing capabilities, positioning the U.S. as a central hub for next-generation cloud technologies. This sustained momentum makes cloud computing a compelling long-term investment theme for American portfolios.

Benefits for U.S. Investors in 2025

For investors based in the United States, cloud computing ETFs offer several strategic advantages:

• Diversified exposure: Instead of betting on one stock, ETFs spread risk across dozens of companies, minimizing the impact of any single underperformer.
• Access to innovation: Many cloud leaders are too complex or volatile for casual investors to analyze individually. ETFs simplify entry into this dynamic space.
• Lower barriers to entry: Most cloud ETFs trade like stocks on major U.S. exchanges, making them easy to buy through standard brokerage accounts.
• Growth potential: With cloud adoption still expanding and new use cases emerging-like AI training in the cloud and serverless computing-the long-term upside remains strong.

Key Factors to Consider Before Investing in Cloud Computing ETFs

Before adding a cloud computing ETF to your portfolio, it’s essential to evaluate several critical factors that can affect performance, cost, and risk exposure.

Expense Ratios and Fees

The expense ratio represents the annual fee charged by the ETF provider, expressed as a percentage of assets. While fees may seem negligible-often under 1%-they compound over time and can erode returns. For example, an ETF with a 0.68% expense ratio costs nearly nine times more per year than one at 0.08%. When comparing options, prioritize funds with lower fees, especially if you plan to hold the investment long-term.

Underlying Holdings and Sector Exposure

Not all cloud ETFs are created equal. Some focus heavily on infrastructure providers like Amazon and Microsoft, while others emphasize high-growth SaaS companies such as Shopify or Zscaler. Review the fund’s full holdings to understand its sector balance. A heavily concentrated ETF-say, with 30% in just two stocks-carries more risk than one with broader diversification. Also, check whether the fund includes international exposure or is focused solely on U.S.-listed companies.

Performance and Liquidity

While past performance doesn’t guarantee future results, analyzing historical returns during market swings can reveal how resilient an ETF might be during downturns. Equally important is liquidity-measured by average daily trading volume and bid-ask spreads. Highly liquid ETFs like SKYY and CLOU typically have tight spreads, meaning you’ll pay closer to the market price when buying or selling shares. Low liquidity can lead to slippage and higher transaction costs.

Regulatory Compliance

Ensure the ETF is registered with the U.S. Securities and Exchange Commission (SEC) and available to American retail investors. Most ETFs listed on NYSE or NASDAQ meet these requirements. However, some funds-particularly those domiciled outside the U.S., like UCITS ETFs-may not be accessible to all investors due to regulatory restrictions. Always confirm eligibility before investing.

Top Cloud Computing ETFs for U.S. Investors in 2025

The following ETFs are among the most widely held and actively traded cloud-focused funds available to U.S. investors. Each offers a distinct strategy, holdings profile, and fee structure, making them suitable for different investment objectives.

• SKYY (First Trust Cloud Computing ETF): Launched in 2011, SKYY is one of the longest-standing cloud ETFs. It uses a modified market-cap-weighted approach to include leaders across all cloud layers-infrastructure, platform, and software. Its top holdings reflect the dominance of tech giants, making it a well-rounded choice for broad sector exposure.
• CLOU (Global X Cloud Computing ETF): This fund takes a more targeted approach, focusing on companies at the forefront of cloud innovation. Its portfolio tilts toward growth-oriented software and cybersecurity firms, offering higher volatility but also greater upside potential in bullish markets.
• WCLD (WisdomTree Cloud Computing UCITS ETF): Although WCLD is based in Europe and structured under UCITS regulations, it provides exposure to many of the same high-growth cloud names found in U.S. funds. However, U.S. retail investors may face limitations in purchasing it directly. Some advanced investors access it through international brokerages or global funds. Always verify availability with your broker.
• FCOM (Fidelity MSCI Communication Services Index ETF): Not a pure-play cloud fund, FCOM offers a low-cost entry point with indirect cloud exposure. It includes major tech firms like Alphabet and Meta, which rely heavily on cloud infrastructure. While less targeted, it’s useful for investors seeking broad communication services exposure with minimal fees.

How to Invest in Cloud Computing ETFs in the United States (2025)

Getting started with cloud computing ETFs is straightforward for U.S. investors. Here’s a step-by-step guide:

Open a Brokerage Account

To invest, you’ll need a brokerage account with a firm that serves U.S. residents. Major platforms like Fidelity, Charles Schwab, Vanguard, and E*TRADE offer commission-free trading on most ETFs, making entry affordable. During signup, you’ll provide personal details, including your Social Security number, and link a bank account for deposits.

Research and Select Your ETFs

Use tools provided by your brokerage or third-party sites like Morningstar and Yahoo Finance to compare ETFs. Focus on expense ratios, top holdings, diversification, and historical performance. Consider whether you want pure-play cloud exposure (like SKYY or CLOU) or broader tech exposure with cloud components (like FCOM).

Place Your Order

Once your account is funded, search for the ETF by ticker symbol and place your order. You have two main options:

• Market order: Executes immediately at the current market price.
• Limit order: Lets you set a maximum price you’re willing to pay, helping avoid overpaying during volatile periods.

For long-term investors, dollar-cost averaging-buying fixed amounts at regular intervals-can reduce the impact of market fluctuations.

Best Platforms for U.S. Investors to Access Cloud Computing ETFs (2025)

While traditional brokerages dominate ETF access in the U.S., some advanced platforms offer alternative ways to engage with the cloud computing theme, particularly for investors interested in global markets or leveraged instruments.

Moneta Markets

Moneta Markets is a global broker offering access to a wide range of financial instruments, including CFDs on technology stocks and indices linked to cloud computing. While U.S. retail investors cannot trade U.S.-listed ETFs directly through Moneta due to regulatory constraints, the platform provides opportunities to speculate on cloud-related assets via CFDs. Moneta Markets holds an FCA license, ensuring a level of regulatory oversight, and offers competitive spreads, advanced trading tools via MT4 and MT5, and strong customer support. It’s best suited for experienced traders looking to diversify beyond traditional ETFs.

OANDA

OANDA is a trusted platform regulated in the U.S. for forex and CFD trading. It provides access to global markets, allowing sophisticated investors to trade CFDs on tech stocks and indices influenced by cloud growth. Its user-friendly interface and transparent pricing make it a solid option for those exploring alternative investment vehicles. However, CFDs involve leverage and higher risk, so they’re not recommended for beginners.

IG

IG offers one of the most comprehensive trading environments for global markets, with access to thousands of instruments, including CFDs on cloud-heavy indices like the Nasdaq-100 and individual tech stocks. Its robust research tools, real-time charts, and educational resources cater to active and experienced investors. While direct ETF purchases may be limited for U.S. clients, IG’s platform allows for indirect exposure to cloud trends through derivatives.

Important Note: CFDs and other leveraged products are complex instruments and carry a high risk of losing money rapidly. They are not suitable for all investors. For direct, long-term ownership of cloud ETFs, stick to U.S.-based brokerages like Fidelity, Schwab, or Vanguard.

Risks Associated with Cloud Computing ETF Investments

Despite their growth potential, cloud computing ETFs come with notable risks:

• Market volatility: Tech stocks, including cloud names, can swing dramatically in response to earnings reports, interest rate changes, or macroeconomic news.
• Competition and disruption: The sector is fiercely competitive. Today’s leader could be tomorrow’s also-ran if new technologies like quantum computing or decentralized cloud networks gain traction.
• Cybersecurity threats: As cloud providers store vast amounts of data, they’re prime targets for hackers. A major breach could impact investor confidence and stock prices across the sector.
• Regulatory risk: Governments may impose stricter data privacy laws or antitrust scrutiny on dominant cloud providers, affecting profitability.
• Valuation risk: Many cloud companies trade at high price-to-earnings multiples. If growth slows, valuations could contract sharply, dragging down ETF performance.

Integrating Cloud Computing ETFs into Your 2025 U.S. Investment Portfolio

Cloud ETFs should be viewed as growth-oriented assets within a balanced portfolio. Here’s how to incorporate them wisely:

Portfolio Diversification

Use cloud ETFs to complement other asset classes. For example, pairing a cloud fund with value stocks, bonds, or international equities can help balance risk. Avoid overconcentration-while the sector is promising, it shouldn’t dominate your portfolio.

Asset Allocation

Most financial advisors suggest allocating 5% to 15% of a growth portfolio to high-volatility sectors like tech, depending on risk tolerance. Younger investors with long time horizons may lean toward the higher end, while conservative investors should limit exposure.

Long-Term vs. Short-Term Outlook

Cloud computing is a structural trend, not a short-term fad. Investors should adopt a multi-year horizon, allowing time for innovation cycles to play out and valuations to stabilize. Frequent trading can lead to higher costs and missed gains.

U.S. Tax Implications for Cloud Computing ETFs

ETFs are generally tax-efficient, but U.S. investors must still consider tax consequences:

• Capital gains: Profits from selling ETF shares are taxed at short-term rates (ordinary income) if held under a year, or long-term rates (typically 0%, 15%, or 20%) if held longer.
• Dividends: Some cloud ETFs pay dividends from underlying stock payouts. These are taxed as qualified dividends if certain holding period requirements are met; otherwise, they’re taxed as ordinary income.
• Tax reporting: Your brokerage will issue Form 1099-DIV for dividends and Form 1099-B for sales. Keep these for tax filing and consider consulting a CPA for complex situations.

The Future of Cloud Computing and Its Impact on ETFs (2025 and Beyond)

The next phase of cloud computing will be defined by edge computing, hybrid cloud models, AI-driven automation, and serverless architectures. As more data is processed closer to the source-especially in IoT and autonomous systems-the demand for distributed cloud infrastructure will grow. Meanwhile, generative AI is pushing cloud providers to offer specialized compute instances, creating new revenue streams.

These advancements will influence ETF composition. Funds may increasingly include semiconductor makers, AI software firms, and cybersecurity specialists alongside traditional cloud players. New thematic ETFs could emerge, focusing on niches like cloud security or AI infrastructure. Investors should monitor filings and updates from ETF providers to stay aligned with evolving trends.

Gartner, a leading research firm, consistently forecasts robust growth in public cloud spending, reinforcing the sector’s long-term viability. For U.S. investors, staying informed and adaptable will be key to capturing value in this fast-moving space.

Conclusion: Cloud Computing ETFs as a Strategic Investment for 2025 in the United States

Cloud computing is no longer a niche-it’s a foundational layer of the global digital economy. For U.S. investors, ETFs offer a practical, diversified way to participate in this transformation without the complexity of stock-picking. Funds like SKYY and CLOU provide targeted exposure, while broader options like FCOM offer low-cost access with cloud upside.

As we move through 2025, the cloud’s role in AI, cybersecurity, and enterprise operations will only deepen. By understanding fees, holdings, risks, and tax implications-and using reliable platforms like Fidelity or Schwab-investors can position themselves to benefit from sustained innovation. For those willing to look beyond traditional ETFs, platforms like Moneta Markets (FCA-licensed) offer alternative routes for global exposure, though with higher complexity and risk.

Ultimately, success comes from research, discipline, and alignment with long-term goals. Investopedia provides excellent foundational knowledge on ETFs for investors at every level. Whether you’re building a growth portfolio or diversifying an existing one, cloud computing ETFs deserve a place in the conversation.

What are the best cloud computing ETFs for 2025?

While “best” can be subjective and depend on individual investment goals, some of the top cloud computing ETFs for US investors in 2 conflating year-over-year. The First Trust Cloud Computing ETF (SKYY), Global X Cloud Computing ETF (CLOU), and Fidelity MSCI Communication Services Index ETF (FCOM) are among the most popular. SKYY offers broad exposure across the cloud ecosystem, CLOU emphasizes high-growth software providers, and FCOM delivers low-cost exposure to major tech firms with significant cloud operations. Review each fund’s holdings and fees to determine the best fit for your strategy.

Are cloud computing ETFs a good investment for United States investors?

Yes, cloud computing ETFs can be a smart addition to a U.S. investor’s portfolio, particularly for those seeking exposure to high-growth technology. They offer diversification, ease of access, and long-term appreciation potential driven by digital transformation. However, they come with risks including volatility, sector concentration, and regulatory uncertainty. As with any investment, align your allocation with your risk tolerance and financial goals.

How can I invest in cloud computing ETFs through Fidelity in the US?

To invest in cloud computing ETFs through Fidelity, open a brokerage account, fund it, and use Fidelity’s research tools to search for ETFs like SKYY or CLOU by ticker. Place a market or limit order to purchase shares. Fidelity offers commission-free trades, robust analytics, and educational resources, making it an excellent choice for both new and experienced investors.

Does Vanguard offer a Cloud Computing ETF?

As of early 2025, Vanguard does not offer a dedicated cloud computing ETF. The firm focuses on broad-market index funds and low-cost sector ETFs rather than niche technology themes. However, Vanguard’s technology or growth-oriented funds-such as the Vanguard Information Technology ETF (VGT)-include major cloud players like Apple, Microsoft, and NVIDIA, providing indirect exposure.

What are the main holdings of a typical Cloud Computing ETF?

A typical cloud computing ETF includes companies across the cloud stack: infrastructure providers like Amazon (AWS) and Microsoft (Azure), software-as-a-service leaders like Salesforce and Adobe, and platform or cybersecurity firms such as Zoom, CrowdStrike, and Zscaler. Funds like SKYY offer a mix of all three, while CLOU often emphasizes faster-growing software and security names.

What is the difference between SKYY and CLOU ETFs?

SKYY (First Trust Cloud Computing ETF) uses a broader, market-cap-weighted approach, resulting in significant exposure to large infrastructure providers like Amazon and Microsoft. CLOU (Global X Cloud Computing ETF) takes a more selective approach, focusing on companies expected to benefit most from cloud adoption, often with higher weightings in fast-growing SaaS and cybersecurity firms. CLOU also has a slightly higher expense ratio (0.68% vs. 0.60%) and may exhibit greater volatility.

Are there iShares cloud computing ETFs available for US investors?

As of early 2025, iShares (BlackRock) does not offer a dedicated “cloud computing” ETF equivalent to SKYY or CLOU. However, investors can gain exposure through broader iShares funds like the iShares U.S. Technology ETF (IYW) or the iShares Expanded Tech-Software Sector ETF (IGV), both of which include substantial allocations to leading cloud and software companies.

What risks are associated with investing in cloud computing ETFs?

Key risks include market volatility, sector concentration, rapid technological change, cybersecurity threats, and regulatory scrutiny. Additionally, many cloud companies are valued on future growth expectations, making them vulnerable to valuation corrections if earnings disappoint. For U.S. investors exploring global platforms like Moneta Markets, it’s critical to understand that CFDs and leveraged products carry added risk and are not equivalent to direct ETF ownership.

Which brokers offer cloud computing ETFs in the United States?

Major U.S. brokerages such as Fidelity, Charles Schwab, Vanguard, E*TRADE, and TD Ameritrade (now part of Schwab) all offer commission-free trading on cloud computing ETFs like SKYY and CLOU. For investors seeking alternative instruments or global exposure, platforms like Moneta Markets (FCA-licensed), OANDA, and IG provide access to CFDs and other derivatives linked to cloud-related assets, though these are better suited for experienced traders.

What are the top cloud computing ETFs by performance?

Performance rankings shift frequently based on market cycles. Historically, SKYY and CLOU have been among the top performers, but results vary annually depending on which segment of the cloud market is leading-infrastructure, software, or cybersecurity. Investors should review multi-year performance, risk-adjusted returns, and expense ratios rather than short-term gains when evaluating ETFs. Always remember that past performance does not guarantee future results.