Bringing you live news and features since 2006 

First Trust lists Cloud Computing UCITS ETF on the Italian Stock Exchange

RELATED TOPICS​

First Trust has listed of the First Trust Cloud Computing UCITS ETF (FSKY) on the Italian Stock Exchange, providing access for local trading and expanding the reach of this innovative fund to the expanding Italian ETF market.Based on the ISE CTA Cloud Computing Index, the fund launched on the LSE in December 2018 and will be listed on the Borsa Italiana on 6 March 2020.

 
Cloud technology which is an efficient method of storing, accessing, and syncing data and software through the internet seeks to offer businesses faster innovation, flexible resources and economies of scale while allowing easy access to information to anywhere with an internet connection.
 
The ISE Cloud Computing Index is a modified market capitalisation weighted index, designed to track the performance of companies actively involved in the cloud computing industry. The Index is a comprehensive and rules-based, designed to measure the performance of companies engaged in a business activity in the cloud computing industry. To be included in the index, a security must be classified as a cloud computing company as defined by the Consumer Technology Association.  The security also must meet the minimum market capitalisation of USD500 million, as well as a minimum free float of 20%; and a minimum three-month average daily dollar trading volume (ADDTV) of USD5 million. The total securities in the Index is 80.
 
Securities are classified according to the following three business segments:
 
Infrastructure-as-a-Service (IaaS) – Companies that deliver cloud computing infrastructure – servers, storage, and networks as an on-demand service

Platform-as-a-Service (PaaS) – Companies that deliver a platform for the creation of software in the form of virtualisation, middleware, and/or operating systems, which is then delivered over the Internet

Software-as-a-Service (SaaS) – Companies that deliver software applications over the Internet enabling other companies to conduct their operations using the application
 
The Index uses a modified equal weighted methodology called the Cloud Score Weighting). At every index evaluation, each security has its Cloud Score calculated by receiving a score for each category (IaaS, PaaS, and SaaS), 1 if it is operating in that category and 0 if it is not. The maximum score that can be achieved is a 6 (3 for IaaS, 2 for Paas, 1 for Saas). Each company’s total score is divided by the total sum of the scores in the universe to determine the weight of each security, and individual security weights are capped at 4.5 per cent.
 
Gregg Guerin, First Trust Senior Product Specialist, says: “Since launching FSKY on the London Stock Exchange in December, we have seen substantial interest from advisers and wealth managers alike, seeking ways to offer efficient strategies to meet the growing demand for the global public cloud market.

“Cloud company, Oracle, suggests that currently only 20 per cent of enterprise computing is in the cloud, and with Gartner forecasting that Public Cloud Services Revenue will grow from USD227.8 billion (November 2019) to USD354.6 billionn by 2020, we believe the cloud offers a great pure play, clear-cut growth opportunity.”
 
Also, Silvia Bosoni from Borsa Italiana, says: “We are delighted to welcome the new ETF of First Trust, innovative firm renowned in the factor-based ETF market, that today lists its FSKY on Borsa Italiana’s ETF-plus market, confirming the continuous growth of ETF-plus in the international economic landscape.”

Latest News

21Shares AG has announced that the firm has added staking to the 21Shares Cosmos ETP (ATOM) and the 21Shares Avalanche..
EFAMA has published its latest Monthly Statistical Release for May 2024...
Solactive writes that it has expanded its collaboration with Kiwoom Asset Management by providing the underlying indices to the KIWOOM..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor interest in private markets, high..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by