Thematic ETF issuer ETFMG, in collaboration with financial services and investment banking firm Wedbush Securities, has launched the Wedbush ETFMG Global Cloud Technology ETF (IVES), catering to investor demand for direct access to a pure-play cloud technology product. IVES, named for prominent Wedbush technology analyst and visionary of the ETF, Dan Ives, is designed for direct access to the cloud infrastructure and cloud “enabler” companies, expected to be major beneficiaries in the estimated $1T in enterprise cloud spending over the next decade. The Fund gives global exposure to companies at the forefront of the next wave of cloud technology.
The IVES ETF is a pure-play on the global cloud theme, maintaining small to mid-cap infrastructure players by focusing on vendors and companies driving the backbone of cloud computing, poised to capture a major portion of cloud spending. These “foundational components” of the cloud industry are expected to represent an estimated 60 to 70 per cent of cloud spending over the next four years. The constituents will include infrastructure equipment, SaaS software, connectivity, data back-up and storage services, and data centre management for enterprise-based software applications, as well as those engaged in enterprise cloud services. IVES is also geographically diverse, giving US investors a way to play the global cloud theme over the coming years inclusive of exposure to the key Asian market players.
Dan Ives, Managing Director and Equity Research Analyst at Wedbush Securities, is a world renowned software and technology analyst with 20-plus years’ experience educating on cloud computing, cyber security, big data and the mobile landscape. The IVES ETF leverages Dan’s globally recognised ability to analyse both the public and private sector of cloud computing, decipher companies’ direction in tech and software development along with his deep understanding of trends in consumer and enterprise cloud landscape.
“Bringing this next generation cloud ETF to market collaboratively with the team at Wedbush and ETFMG is an initiative I am extremely excited about, with cloud computing poised to see a major acceleration of enterprise spending over the next decade,” says Dan Ives. “Our vision behind the ETF stems from an investor demand for direct, true global exposure to the ‘cloud enabler’ companies I have been covering for decades. In the next two years alone, we anticipate over a 65% increase in workloads managed in the cloud, now there is a way for investors to capture that.”
The IVES fund is the fifth product launched by ETFMG in its “disruptive technology” investment theme and the first in-market collaboration between the two privately owned firms, ETFMG and Wedbush Securities.
“We are extremely proud to bring this unique thematic ETF to market alongside Wedbush and cloud technology expert, Dan Ives,” says Sam Masucci, Founder and CEO of ETFMG. “IVES answers a void in the investible cloud universe, giving investors exposure to the companies that are the foundation of the entire cloud ecosystem. This ETF is the first product of the powerhouse collaboration between our two firms, and together we look forward to continuing to drive what’s next in global investing.”