Cloud Computing ETFs are Kings of Theme Portfolios

By Todd Rosenbluth, CFRA Since 2015, the number of thematic ETFs available in US quadrupled to 125 as of the end of the first quarter of 2020. But even with increased competition, the asset base has tripled to $25 billion. Years ago, when advisors wanted to tap into a long-term theme that could benefit from technological developments or shifts in consumer behavior or the physical environment, they had to purchase a couple of individual stocks and hope the spotted the winners, not the losers. Today, investors can benefit from diversification using ETFs connected to themes like automation through robotics, cannabis, clean energy, cybersecurity, health care innovation, video games and more. However, the most popular of these themes is now cloud computing.