First Trust Cloud Computing ETF (SKYY): Complete Beginner's Guide
Last updated: March 2026 • First Trust • Cloud Computing
Expense Ratio
0.60%
AUM
$3.0B
Dividend Yield
0.30%
Inception
2011
Beginner Score
8/10
What is First Trust Cloud Computing ETF?
SKYY invests in companies that deliver cloud computing infrastructure, platforms, and software services to businesses and consumers. It spans the full cloud technology stack from data center operators to SaaS application providers. This fund captures the ongoing shift of enterprise computing workloads from on-premise hardware to cloud-based services.
SKYY is managed by First Trust and has been available since 2011. With $3.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.60%, which means for every $10,000 you invest, you pay approximately $60 per year in management fees.
SKYY at a Glance — Key Metrics
| Expense Ratio | 0.60% |
| Total Holdings | 70 |
| P/E Ratio | 35.0 |
| Beta | 1.12 |
| Dividend Yield | 0.30% |
| AUM | $3.0B |
| Inception Year | 2011 |
| Issuer | First Trust |
Top 10 Holdings in SKYY
SKYY holds 70 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Amazon.com Inc. | AMZN | 5.00% |
| 2 | Microsoft Corp. | MSFT | 5.00% |
| 3 | Alphabet Inc. | GOOGL | 4.50% |
| 4 | Snowflake Inc. | SNOW | 3.00% |
| 5 | MongoDB Inc. | MDB | 2.50% |
| 6 | Datadog Inc. | DDOG | 2.50% |
| 7 | ServiceNow Inc. | NOW | 2.50% |
| 8 | Cloudflare Inc. | NET | 2.00% |
| 9 | Twilio Inc. | TWLO | 2.00% |
| 10 | DigitalOcean Holdings | DOCN | 2.00% |
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SKYY Performance History
Here's how SKYY has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
7.00%
1 Year
16.00%
3 Year
5.00%
5 Year
10.00%
10 Year
14.00%
Beginner Suitability Score: 8/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SKYY scores 8/10 because it has very low fees, can be more volatile than the broader market, focuses on 70 selected holdings, and has been available since 2011, giving it a proven track record.
How to Buy SKYY — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SKYY" — Use the search bar in your brokerage platform to find First Trust Cloud Computing ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into SKYY
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SKYY's expense ratio of 0.60%, a $10,000 investment would lose approximately $4,914 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of SKYY
Pros
- ✓Comprehensive exposure across all three cloud service layers: IaaS, PaaS, and SaaS
- ✓Enterprise cloud migration is a multi-decade trend with strong secular tailwinds
- ✓Includes both established hyperscalers and high-growth cloud-native companies
- ✓Longer track record than most cloud computing ETFs dating back to 2011
Cons
- ✗Mega-cap cloud companies dominate returns which reduces small-cap growth upside
- ✗High aggregate valuation of cloud stocks makes the fund sensitive to rate changes
- ✗Significant overlap with large-cap technology and growth ETFs already in many portfolios
SKYY vs Similar ETFs
See how SKYY stacks up against similar funds:
Frequently Asked Questions
Is SKYY a good ETF for beginners?▾
SKYY has a Beginner Suitability Score of 8/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of SKYY?▾
SKYY has an expense ratio of 0.60%. This means for every $10,000 you invest, you pay approximately $60 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SKYY?▾
You can invest in SKYY with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SKYY pay dividends?▾
Yes, SKYY pays dividends with a current yield of approximately 0.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SKYY?▾
The top holdings in SKYY include Amazon.com Inc. (5.00%), Microsoft Corp. (5.00%), Alphabet Inc. (4.50%), and more. The fund holds 70 total positions, providing focused exposure to selected companies.