WisdomTree Cloud Computing Fund (WCLD) uses an equal-weight index to invest in U.S.-listed cloud companies, with a portfolio tilted toward small- and mid-cap software businesses. The ETF has about $304 million in assets and charges a 0.45% expense ratio. It has lagged the technology-sector benchmark XLK in recent years, with larger swings and deeper drawdowns. Equal weighting limits the influence of any single holding, but does not shield the fund from concerns that generative AI could displace some enterprise software products and IT services.
How WCLD selects and weights its holdings
Launched on September 6, 2019, WCLD tracks the BVP Nasdaq Emerging Cloud Index. The index primarily includes U.S.-listed companies that deliver enterprise software through browsers, mobile devices or APIs and charge by subscription, usage or transaction. At least half of each company’s revenue must come from cloud services. Established constituents generally need to have recorded revenue growth of at least 7% in one of the past two fiscal years; newly eligible companies must meet a 15% annual growth threshold. Companies must also have a market capitalization of at least $500 million, average daily trading volume of at least $5 million over the prior three months, and meet ESG criteria.
The index rebalances twice a year and assigns equal weights. WCLD’s turnover was 43% in its most recent fiscal year. Fund materials list 64 holdings in one overview and 66 in a peer-comparison table for the same period; the count can vary over time and by data methodology. The fund makes no distributions. Average daily trading volume is about $27 million, nearly 9% of its roughly $304 million in assets, indicating active trading. WCLD’s manager, WisdomTree, has more than $160 billion in assets under management.
Software and smaller companies dominate the portfolio
Portfolio data dated November 12, 2026, show that about 87% of assets are invested in mid-, small- and micro-cap companies. Information technology accounts for 92% of the fund, with software representing 79%; smaller allocations go to healthcare, industrials and financials. Equal weighting keeps top-holding concentration relatively low: the 10 largest positions make up about 20% of assets, and the largest individual position is approximately 2.3%.
Ranked by price performance since the latest rebalance, the 10 largest holdings are Netskope (NTSK, 2.34%), Braze (BRZE, 2.27%), Okta (OKTA, 2.05%), Zeta Global (ZETA, 1.97%), DocuSign (DOCU, 1.96%), PagerDuty (PD, 1.93%), Tenable (TENB, 1.90%), AvePoint (AVPT, 1.88%), Veeva Systems (VEEV, 1.87%) and Procore Technologies (PCOR, 1.85%). Weights fluctuate with share prices and index changes.
Valuation measures send mixed signals
Compared with XLK, WCLD trades at lower price-to-book, price-to-sales and price-to-cash-flow ratios: 5.6, 4.96 and 19.66, respectively, versus 11.55, 8.87 and 25.99 for XLK. Its trailing price-to-earnings ratio, however, is higher at 34.39, compared with 31.66 for XLK. WCLD’s sales growth rate is 14.45% and cash-flow growth is 29.95%, both above XLK’s 9.98% and 16.02%.
The data do not provide a valid earnings-growth figure for WCLD. The accompanying note says this may reflect aggregate earnings that were previously negative or close to zero. The fund’s current positive P/E indicates that portfolio earnings have turned positive, but that measure alone does not show the scale of the improvement. The valuation metrics therefore offer a mixed picture and need to be considered alongside growth and earnings trends.
Long-term returns trail XLK as drawdowns and volatility rise
From September 13, 2019, through November 12, 2026, WCLD delivered a cumulative total return of 63.05%, or 7.06% annualized. Over the same period, XLK returned 356.91%, or 23.62% annualized. WCLD’s maximum drawdown was 64.90%, compared with 33.56% for XLK, while volatility was 31.26% versus 23.30%. The Sharpe ratio over the period was 0.34 for WCLD and 0.94 for XLK.
For the 12 months through November 12, 2026, WCLD returned 16.66%, below XLK’s 19.25%. WCLD’s maximum drawdown was 33.40%, against 19.61% for XLK, and volatility was 40.32%, compared with 33.75%. Both funds had a Sharpe ratio of 0.79 over that period. Concerns that generative AI could replace some IT services and enterprise software products have been one factor weighing on cloud-computing stocks.
WCLD has the lowest top-10 concentration among peers
WCLD charges 0.45%, less than the 0.60% fee for First Trust Cloud Computing ETF (SKYY) and 0.68% for Global X Cloud Computing ETF (CLOU), but more than the 0.39% for Fidelity Cloud Computing ETF (FCLD). In the period covered by the comparison data, the four funds had approximately $304 million, $3.2 billion, $378 million and $141 million in assets, respectively. Their average daily trading volumes were about $26.99 million, $38.6 million, $8.27 million and $1.34 million.
WCLD’s 10 largest holdings account for 20.02% of assets, below SKYY’s 33.97%, CLOU’s 48.62% and FCLD’s 37.52%—the lowest concentration among the four. One-year price returns were 15.36%, 12.15%, 9.43% and 26.59%, respectively. Three-year returns were 45.13%, 100.12%, 39.32% and 105.27%; five-year returns were -34.22%, 31.55%, -13.97% and 47.28%. WCLD ranked second over one year but had the weakest five-year return.
Equal weighting is WCLD’s main point of difference. SKYY weights holdings by thematic strength scores, while CLOU and FCLD use modified market-cap weighting. The comparison excludes Themes Cloud Computing ETF (CLOD), which has about $3 million in assets and average daily trading volume of roughly $33,000. WCLD combines a more dispersed portfolio with several valuation measures below XLK’s, while its historical returns, drawdowns and volatility show larger fluctuations.