Cloud computing index fund lagging broader markets

Back in July 2011, I wrote about the launch of an ETF (exchange traded fund) devoted to cloud computing stocks.  The companies in the fund did not appear to be a highly speculative bunch. Most of the companies had strong revenue flows from legacy businesses that were mature before they entered the cloud space.

After 20 months, the fund hasn’t lost money but it is trailing behind the gains showing up in the broader markets.

The fund launched with a price of $20.20 in July 2011 and it now trades at $21.02. According to Yahoo Finance’s calculation, the 1-year return is 2.76%. And year-to-date, 5.59%.

The fund’s top 10 holdings now are Zynga, Acme Packet, Aruba, HP, Google, Netsuite, Oracle, Equilink, Netflix and Informatica.

When I first wrote about SKYY the top 10 holdings were Tibco, Aruba, NetFlix, Amazon, Teradata, Blackboard,  OpenText, Informatica, VMware and Salesforce.