WCLD offers access to cloud computing businesses that represent a compelling alternative to broader-based, technology-focused investment strategies
Cloud-based businesses can lead to better margins, growth and efficiency characteristics
NEW YORK, Sept. 06, 2019 (GLOBE NEWSWIRE) -- WisdomTree (WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of an ETF that provides unique exposure to rapidly growing cloud computing companies, which leverage a distributed network of servers over the internet. The WisdomTree Cloud Computing Fund (WCLD), listed today on the NASDAQ, seeks to track the price and yield performance, before fees and expenses, of the BVP Nasdaq Emerging Cloud Index (EMCLOUD), and has an expense ratio of 0.45%.
EMCLOUD’s group of publicly traded cloud software stocks up 38.64% since the beginning of the year.
“As the world becomes increasingly more digital and connected, the global cloud computing market has grown exponentially and is projected to total nearly $697 billion by 2025. The WisdomTree Cloud Computing Fund (WCLD) provides investors with a focused approach to selecting emerging cloud companies and scales the unique expertise of Nasdaq and Bessemer Venture Partners in identifying these companies,” explained Jeremy Schwartz, WisdomTree EVP and Global Head of Research.
"Nasdaq and Bessemer Venture Partners have worked to bring a new benchmark to market, as cloud services gain in importance as tools of business growth," said Dave Gedeon, Vice President and Head of Index Research & Development, Nasdaq Global Indexes. "The BVP Nasdaq Emerging Cloud Index (EMCLOUD) is a tangible way to track the growth of companies that change their industries and empower their clients through use of cloud technology."
Schwartz continued, “WCLD targets cloud computing businesses, which we believe are best positioned for high levels of recurring revenue growth and have the potential to scale at a faster rate than traditional tech companies. Cloud-based businesses typically have better profit margins and higher growth than other tech companies. Additionally, WCLD is currently the most competitively priced cloud computing ETF in the market.”
WCLD: What’s Under the Hood?
The WisdomTree Cloud Computing Fund will invest in emerging public companies listed on the Nasdaq Stock Market, the New York Stock Exchange, NYSE American or the CBOE Exchange that are primarily involved in providing cloud software and services to their customers.
In order to be considered a cloud computing business and eligible for inclusion, the company must possess the following characteristics, as determined by Bessemer Venture Partners (BVP):
- Cloud Computing Focused: Each company must derive a majority of its revenue from business-oriented software products through a cloud delivery model that is a subscription based, volume-based, or transaction-based offering.
- Attractive Revenue Growth: New index constituents must have grown annual revenue by at least 15% for each of the last two full fiscal years; existing index constituents must have grown revenue by at least 7% in at least one of the last two fiscal years to remain eligible.
- Liquidity Constraints: Companies in the index must have a minimum market capitalization of $500 million and a minimum three-month average daily dollar trading volume of $5 million.
Nasdaq® and BVP Nasdaq Emerging Cloud Index℠ are registered trademarks and service marks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by WisdomTree. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
“THE INFORMATION SET FORTH IN THE BVP NASDAQ EMERGING CLOUD INDEX IS NOT INTENDED TO BE, AND SHALL NOT BE REGARDED OR CONSTRUED AS, A RECOMMENDATION FOR A TRANSACTION OR INVESTMENT OR FINANCIAL, TAX, INVESTMENT OR OTHER ADVICE OF ANY KIND BY BESSEMER VENTURE PARTNERS. BESSEMER VENTURE PARTNERS DOES NOT PROVIDE INVESTMENT ADVICE TO WISDOM TREE OR THE FUND, IS NOT AN INVESTMENT ADVISER TO THE FUND AND IS NOT RESPONSIBLE FOR THE PERFORMANCE OF THE FUND. THE FUND IS NOT ISSUED, SPONSORED, ENDORSED OR PROMOTED BY BESSEMER VENTURE PARTNERS. BESSEMER VENTURE PARTNERS MAKES NO WARRANTY OR REPRESENTATION REGARDING THE QUALITY, ACCURACY OR COMPLETENESS OF THE BVP NASDAQ EMERGING CLOUD INDEX, INDEX VALUES OR ANY INDEX RELATED DATA INCLUDED HEREIN, PROVIDED HEREWITH OR DERIVED THEREFROM AND ASSUMES NO LIABILITY IN CONNECTION WITH ITS USE. BESSEMER VENTURE PARTNERS AND/OR POOLED INVESTMENT VEHICLES WHICH IT MANAGES, AND INDIVIDUALS AND ENTITIES AFFILIATED WITH SUCH VEHICLES, MAY PURCHASE, SELL OR HOLD SECURITIES OF [A] ISSUERS THAT ARE CONSTITUENTS OF THE BVP NASDAQ EMERGING CLOUD INDEX OR [B] THE WISDOMTREE CLOUD COMPUTING FUND ITSELF FROM TIME TO TIME AND AT ANY TIME, INCLUDING IN ADVANCE OF OR FOLLOWING AN ISSUER BEING ADDED TO OR REMOVED FROM THE BVP NASDAQ EMERGING CLOUD INDEX.”
There are risks associated with investing, including possible loss of principal. The Fund invests in cloud computing companies, which are heavily dependent on the Internet and utilizing a distributed network of servers over the Internet. Cloud computing companies may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress, and government regulation. These companies typically face intense competition and potentially rapid product obsolescence. Additionally, many cloud computing companies store sensitive consumer information and could be the target of cybersecurity attacks and other types of theft, which could have a negative impact on these companies and the Fund. Securities of cloud computing companies tend to be more volatile than securities of companies that rely less heavily on technology and, specifically, on the Internet. Cloud computing companies can typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company’s operating results. The composition of the Index is heavily dependent on quantitative and qualitative information and data from one or more third parties and the Index may not perform as intended. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
This Fund is new and has limited operating history. Past performance is not indicative of future results. You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns. WisdomTree, its affiliates and their independent providers are not liable for any informational errors, incompleteness or delays or for any actions taken in reliance on information contained herein.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, call 866.909.9473 or visit wisdomtree.com. Read the prospectus carefully before you invest.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only. Foreside Fund Services, LLC is not affiliated with the entities mentioned.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $59.9 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
 Source: Bloomberg, as of 8/31/19. Return is based on the net total return of the BVP Nasdaq Emerging Cloud Index. Past performance is not indicative of future results. You cannot invest directly in an index.
 Adroit Market Research, May 30, 2019