At a glance
SKYY charges 0.6% a year, above the 0.55% average of the 8 funds most like it (the 6th cheapest of 9). It has $2.72B in assets, the 3rd largest of that group. Over the past year it returned +21.8% with distributions reinvested (S&P 500: +11.5%), 6th of those 9 funds; over three years it returned +34.0% a year. At its worst it fell 33.0% in the 2020 crash (S&P 500: 33.7%) and 43.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 24 months after the lows. Its ten largest positions make up 36.2% of the fund, out of 64 in all.
The short version
First Trust Cloud Computing ETF (SKYY) is an index fund that tracks the ISE CTA Cloud Computing Index, a basket of about 64 companies that sell cloud infrastructure, platforms and software. A company's weight depends on its type of cloud business, not its size, so smaller firms like DigitalOcean and Nutanix carry as much weight as Amazon and Microsoft. It costs 0.60% a year, more than Fidelity's 0.40% cloud ETF, and it pays no meaningful income.
Price history
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SKYY +21.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SKYY official prospectus, to Dec 31, 2025 | — | +9.26% | — | +6.68% | +16.20% | +14.05% |
| SKYY price data to Oct 27, 2026 | +31.8% | +21.8% | +34.0% | +8.9% | +17.8% | +15.3% |
- Over the year to Oct 27, 2026, SKYY returned +21.8%, 6th of 9 among similar funds.
- Its 5-year annualized return was +8.9% and its 10-year +17.8%.
- In the 2020 COVID crash it fell 33% and regained its old high 2.2 months after the low.
- Its worst full calendar year was 2022 (-44.7%); its best was 2020 (+57.8%).
- The deepest fall in its price history was 53.2% (Nov 16, 2021 to Dec 28, 2022), recovered by Nov 11, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +31.8% | — |
| 2025 | +9.2% | +9.26% |
| 2024 | +35.9% | +35.83% |
| 2023 | +52.2% | +52.21% |
| 2022 | -44.7% | -44.67% |
| 2021 | +10.6% | +10.55% |
| 2020 | +57.8% | +57.84% |
| 2019 | +25.3% | +25.78% |
| 2018 | +6.6% | +6.23% |
| 2017 | +33.5% | +33.39% |
| 2016 | +15.2% | +15.42% |
| 2015 | +6.0% | — |
| 2014 | +7.3% | — |
| 2013 | +33.6% | — |
| 2012 | +15.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 28.5% over that stretch · deepest drop along the way 33%, back to its old high 2.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 43.9% over that stretch · deepest drop along the way 43.9%, back to its old high 23.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2022 | $0.1300 | -84.1% |
| 2021 | $0.8200 | +412.5% |
| 2020 | $0.1600 | -51.5% |
| 2019 | $0.3300 | -26.4% |
| 2018 | $0.4482 | +273.5% |
| 2017 | $0.1200 | 0.0% |
| 2016 | $0.1200 | 0.0% |
| 2015 | $0.1200 | +140.0% |
| 2014 | $0.0500 | +1566.7% |
| 2012 | $0.0030 |
What's inside
As of Jun 30, 2026, the fund held 64 securities; the ten largest made up 36.18% of assets.
| Holding | Weight | |
|---|---|---|
| ARISTA NETWORKS INC | 4.18% | |
| DIGITALOCEAN HOLDINGS INC | 3.95% | |
| EVERPURE INC | 3.89% | |
| NUTANIX INC | 3.84% | |
| INTERNATIONAL BUSINESS MACHINES CORP | 3.70% | |
| ALPHABET INC | 3.68% | |
| AMAZON.COM INC | 3.45% | |
| MONGODB INC | 3.27% | |
| MICROSOFT CORP | 3.25% | |
| COREWEAVE INC | 2.97% | |
| CLOUDFLARE INC | 2.65% | |
| CISCO SYSTEMS INC | 2.55% | |
| ORACLE CORP | 2.55% | |
| LUMEN TECHNOLOGIES INC | 2.28% | |
| TWILIO INC | 2.12% |
By country
United States 94.85%Canada 2.49%Germany 1.11%Israel 1.06%Netherlands 0.58%By asset type
Stocks 99.95%RA 0.13%By sector
Sectors of the companies held, for the 50.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $130.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.61%, +21.62%, -6.84%.
How it works
SKYY, from First Trust, follows a rulebook rather than a manager's picks. It aims to match, before fees, the ISE CTA Cloud Computing Index, which Nasdaq maintains, and normally keeps at least 90% of its net assets in the index's stocks. Eligible companies must be classified as cloud computing businesses by the Consumer Technology Association and pass size, trading-volume and listing-age tests.
Weights follow a "cloud score," not company size. A firm earns 3 points for renting out servers, storage and networks, 2 for offering platforms to build software and 1 for selling software online, up to 6. Each stock's weight is its score divided by the sum of all scores, capped at 4.5% with a 0.25% minimum. Another rule limits small companies' weights based on their size versus the index median. So giants don't dominate: as of June 30, 2026, the largest of 64 holdings, Arista Networks, was 4.2%, and Microsoft was 3.2%.
Each quarter the index adds and drops companies and resets weights; the fund follows shortly after. Annual turnover (the share of holdings replaced) was 30%. The fund may hold foreign stocks, including Chinese companies closed to direct foreign ownership, via shell-company structures called variable interest entities. It uses no leverage and held no derivatives as of June 30, 2026.
What it really costs
- SKYY charges 0.6% a year, versus an average of 0.55% for the similar funds below (6th of 9, cheapest first).
In a retirement portfolio
SKYY is a narrow, high-volatility bet on one corner of technology that pays no income, so it can sit beside a broad core holding but cannot replace one.
SKYY adds focused exposure to cloud companies, but its swings are large. Over the year to October 27, 2026, it moved about 1.5 times as much as the broad market. It started trading in 2011, so it has no 2008 record. In the 2020 COVID crash it fell 33% in under a month and recovered by May 2020. The 2022 bear market hit much harder: it lost 44.67% that year. Its deepest drop was 53.2%, from November 2021 to December 2022, and it did not recover until November 2024. Anyone who had to sell shares during that stretch would have locked in heavy losses. It paid nothing out in the year through October 27, 2026, so it provides no income. Its 0.60% fee is above the 0.55% average of similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a focused cloud slice, including smaller infrastructure names like DigitalOcean, Nutanix and CoreWeave alongside Amazon, Microsoft and Alphabet.
- Long-horizon investors who can hold through drops like the 53.2% decline from November 2021 to December 2022 without selling.
- Those who prefer a rules-based index spread across 64 stocks, with each position capped at 4.5% when the index rebalances.
Look elsewhere if
- Investors who need income: SKYY paid nothing out in the year through October 27, 2026.
- Cost-focused investors: its 0.60% expense ratio is higher than Fidelity Cloud Computing ETF (0.40%) and Themes Cloud Computing ETF (0.35%).
- Anyone who may need to sell in a downturn: it took about two years to win back its 2022 losses.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SKYY this fund | — | 0.6% | $2.72B | +21.8% | +34.0% |
| FCLD Fidelity Cloud Computing ETF | 36% | 0.4% | $110.4M | +46.9% | +36.5% |
| CLOD Themes Cloud Computing ETF | 31% | 0.35% | $2.5M | +1.1% | — |
| XAIX Xtrackers Artificial Intelligence and Big D… | 31% | 0.35% | $173.4M | +31.0% | — |
| FDN First Trust Dow Jones Internet Index Fund | 28% | 0.51% | $4.98B | -1.2% | +23.7% |
| CIBR First Trust NASDAQ Cybersecurity ETF | 24% | 0.59% | $13.84B | +25.8% | +29.6% |
| ILDR First Trust Innovation Leaders ETF | 23% | 0.75% | $324.2M | +11.0% | +33.7% |
| AIFD TCW Artificial Intelligence ETF | 22% | 0.75% | $125.3M | +33.8% | — |
Questions investors ask
Does SKYY pay dividends?
No, not in any meaningful way. SKYY paid no distributions in the 12 months through October 27, 2026, and its yield was 0% as of that date. Any return comes from changes in the share price. That makes it a poor fit for someone who wants regular income from a fund. It may still play a growth role for investors who don't need cash payments.
What's the difference between SKYY and FCLD?
Both funds hold cloud computing stocks, but Fidelity Cloud Computing ETF (FCLD) is cheaper, at 0.40% a year against SKYY's 0.60%. About 36% of their holdings overlap, based on the latest N-PORT reports. SKYY is far larger, with $2.72 billion in net assets against FCLD's $110 million as of June 30, 2026. In price returns through October 27, 2026, FCLD gained 46.9% over one year to SKYY's 21.8%. Over three years, FCLD averaged 36.5% a year and SKYY 34%.
What companies are in the SKYY ETF?
SKYY held 64 stocks as of June 30, 2026, and about 95% of the money was in US companies. The largest holdings were Arista Networks (4.2%), DigitalOcean (3.9%), Everpure (3.9%), Nutanix (3.8%), IBM (3.7%), Alphabet (3.7%), Amazon (3.5%), MongoDB (3.3%), Microsoft (3.2%) and CoreWeave (3.0%). Together, the top ten made up about 36% of assets, so no single company dominates the fund.
How much did SKYY lose in 2022?
SKYY lost 44.67% in calendar year 2022, according to its prospectus. Its worst quarter was the one ending June 30, 2022, when it fell 27.21%. From its November 16, 2021 peak to its December 28, 2022 low, it dropped 53.2%. It did not get back to its old high until November 11, 2024. The rebound was strong: the fund gained 52.21% in 2023 and 35.83% in 2024.
What is SKYY's expense ratio and long-term return?
SKYY's expense ratio is 0.60%, according to the prospectus filed January 28, 2026, and all of it is the management fee. That ranks 6th of 9 on cost among similar funds, where the average is 0.55%. As of December 31, 2025, the fund's average yearly returns were 9.26% over one year, 6.68% over five years and 16.2% over ten years. Since it launched in 2011, it has averaged 14.05% a year.