BetaShares will launch an exchange-traded fund (ETF) based around cloud-computing technology and subject to regulatory approvals plans to start trading on the Australian Securities Exchange (ASX) by the end of this month.
The firm said the fund, which will carry the ASX code CLDD, will be the first cloud-computing ETF in Australia and will track an index of listed cloud-computing companies in developed and emerging markets.
Companies within the index will be involved in the provision of cloud-based services, including servers, storage, databases, networking, software and analytics, and will include exposure to online providers such as Xero, Shopify, Dropbox and Zoom.
According to BetaShares chief executive Alex Vynokur the new ETF was the result of increasing investor demand for exposure to particular growth areas.
“CLDD has been carefully designed to offer a ‘pure-play’ exposure to the cloud-computing theme. Its methodology ensures that only companies whose primary focus is on cloud-based services are included in the portfolio and excludes large diversified tech companies whose global cloud services represent only a small part of their business,” Vynokur said.
The investment manager pointed out revenues in the cloud-computing sector were forecast to grow 17.5 per cent a year to reach US$832 billion by 2025 after the COVID-19 pandemic accelerated the uptake of online services such as flexible working, videoconferencing, online shopping and digital media consumption.
BetaShares added since inception in November 2013 to the end January 2021, the index CLDD will aim to track has returned 34.4 per cent a year compared to 12.4 per cent a year for the MSCI World Index and 24.8 per cent a year for the NASDAQ-100 Index.
“We are excited to give Australian investors the ability to access the growth potential of cloud computing in a convenient and cost-effective way. Even with the significant take-up experienced to date, we believe the megatrend in cloud computing has only just begun,” Vynokur noted.''