NEW YORK, April 16, 2019 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds, announced today the launch of the 14th fund in its Thematic Growth suite, the Global X Cloud Computing ETF (Nasdaq: CLOU). Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.
The increasingly digital and connected world that form the backdrop for CLOU's launch is exhibiting significant growth, and is expected to continue to grow over the coming years. The cloud computing industry that was estimated to be worth $188 billion in 2018 is expected to be worth over $300 billion by 2022, a nearly 15% annualized growth rate.1 As storage and computing costs continue to shrink, adoption of cloud computing solutions is likely to continue to grow.
"With cloud computing, we're witnessing a wide-ranging disruption of traditional IT infrastructure," said Michael Hoffmann, research analyst at Global X. "The substantial increases in efficiency and power accessible through cloud-based technology is the backbone for enterprise IT, social media, and streaming platforms, and should continue to support the development of the most exciting technologies of our time, like artificial intelligence and the Internet of Things. We're thrilled to offer investors and clients a tool like CLOU to access this theme, and we're excited to continue to watch this space evolve."
Though cloud computing is used in some form by upwards of 90% of companies today, there are indications that the trend is in its early stages, as the majority of today's IT environment is still non-cloud.2 There are signs that adoption is ramping up quickly, though, as the average company's cloud spending has jumped 36% from $1.8 million in 2016 to $2.2 million in 2018.3
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Investing involves risk, including the possible loss of principal. The investable universe of companies in which CLOU may invest may be limited. The Fund invests in securities of companies engaged in Information Technology, which can be affected by rapid product obsolescence and intense industry competition. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. CLOU is non-diversified.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full or summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Indxx, nor does Indxx make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with Indxx.
1 Global X analysis based on data from Gartner, Credit Suisse, and IDC.
2 IDG, "2018 Cloud Computing Survey," Aug 14, 2018.
SOURCE Global X Funds