Cheapest Cloud Computing ETF and Lowest Expense Ratio Cloud ETFs

The cheapest cloud computing ETF is the Fidelity Cloud Computing ETF (FCLD) at 0.39% a year. WisdomTree's WCLD charges 0.45%, First Trust's SKYY, the largest fund at $3.6 billion, 0.60%, and Global X's CLOU 0.68%. iShares' IGV costs 0.38%, a hair less than FCLD, but it is a broad software fund rather than a cloud fund. Vanguard and Schwab do not sell a cloud computing ETF.

The fee gap between these funds is a quarter of a percentage point. The gap in what they hold is far wider. We sorted every holding in the five funds by what the company mainly sells, and the share that is actually cloud software and cloud platforms runs from 55.7% in FCLD to 96.8% in WCLD. The rest is Microsoft, Amazon and Alphabet, storage and networking hardware, data center owners and, in IGV, chip design software, video game publishers and bitcoin miners. So below, every US cloud computing ETF is ranked twice: by expense ratio, and by what it costs for each $100 of cloud software you actually get.

Expense ratios come from each fund's summary prospectus. Holdings come from the issuers' daily files for SKYY (October 12, 2026) and CLOU (October 13, 2026). The WisdomTree, Fidelity and iShares websites could not be read, so WCLD, FCLD and IGV holdings are from their latest SEC holdings filings, all for June 30, 2026. We make index construction and backtesting software; we do not sell funds or give investment advice.

Cheapest cloud computing ETFs ranked by expense ratio

None of the five has a fee waiver, so the number on the label is the number you pay. A sixth fund, the Themes Cloud Computing ETF (CLOD), held about $2.5 million at the end of June, which is too small to trade without losing more to the spread than you save on the fee. SKYU and CLDL are leveraged funds that reset every day and are built for trading, not holding.

Which cloud computing ETF has the lowest expense ratio?

FCLD has the lowest expense ratio of the funds with cloud computing in the name, at 0.39%. It tracks a Fidelity index that picks companies by revenue and a text score of how much their business is about cloud, weights them by adjusted market value and resets every quarter. It is also the smallest established fund, about $110 million at the end of June, so check the bid and ask spread before a large order.

The surprise is what that 0.39% bought. In FCLD's June 30 filing its three largest holdings were SanDisk at 6.2%, Western Digital at 5.3% and Seagate at 5.0%, the companies that make the hard drives and flash memory inside data centers. Storage hardware made up 21.0% of the fund, and with Equinix, Digital Realty and Hon Hai, hardware and data centers came to 29.8%. Cloud software and platforms were 55.7%. FCLD resets every quarter, so the exact mix will have moved since June. Check the current holdings on Fidelity's fund page before you treat it as a software fund.

The cost per $100 of actual cloud software

Here is the ranking that changes the answer. Divide each fund's fee by the share of the fund in cloud software and cloud platforms (data and observability, business applications, security sold as a service, communications, commerce and developer clouds), and you get what each fund really charges for the part you came for.

WCLD moves from third to first, and SKYY, the fund with most of the money, comes last. The reason is how SKYY's index scores companies: three points for cloud infrastructure, two for platforms and one for software, so infrastructure gets the biggest weights. On October 12 its largest holding was Everpure at 5.5%, which is Pure Storage under the name it adopted in January 2026, and 20.0% of the fund sat in Everpure, Arista, Cisco, HPE, Lumen, NetApp and Dell. Another 16.5% was Microsoft, Alphabet, Amazon, IBM and Oracle, which an S&P 500 fund gives you for about 0.03%.

CLOU is the mirror image. It has the highest fee on the label, yet it ranks above SKYY per software dollar because 90.8% of it is software. The bucket lines are our own judgment, and some names could move: we counted DigitalOcean, CoreWeave and Nutanix as cloud platforms, and Adobe, Intuit, Palantir and Palo Alto as cloud software. Under a strict reading that leaves those out, WCLD still costs $0.57 per $100 and SKYY $1.51, so the order at the top and bottom holds.

Is there a Vanguard cloud computing ETF?

No. Vanguard does not sell a cloud computing ETF, and neither does Schwab under its own name. The Vanguard fund people usually get pointed to is the Information Technology ETF (VGT) at 0.09%. Cloud software companies were 11.8% of it in Vanguard's August 31, 2026 holdings, while Microsoft alone was 11.5%, and Amazon and Alphabet are not in it at all because they are not classed as technology companies. Per software dollar VGT is cheaper than SKYY, but you are buying a tech fund dominated by NVIDIA, Apple and Microsoft with a thin slice of cloud in it. A Vanguard, Fidelity or Schwab account can still buy any of the funds above, or the cloud stocks themselves, usually with no commission.

WCLD vs SKYY

They answer different questions. SKYY asks who builds and runs the cloud, so it holds the hyperscalers, the storage and networking makers and the software companies, 65 names in all. WCLD asks which business software companies are growing fastest, requires at least 15% revenue growth to join, and gives each of its 64 names an equal share. WCLD is cheaper, 0.45% against 0.60%, and holds none of Microsoft, Amazon or Alphabet, so it duplicates almost nothing in an S&P 500 fund: its companies were 2.6% of SPY, against 19.6% for SKYY's. The two shared 39 companies but only about 40% of their weight. SKYY has the longer record, back to 2011 against 2019.

WCLD vs CLOU

Both are mostly software, so this comes down to weighting and fee. WCLD spreads its money equally, so no name was above 3.3% in June. CLOU weights 38 companies by market value with a 4% cap, which lets leaders drift between resets: on October 13 Snowflake was 7.3% of CLOU and Datadog 5.9%. CLOU also keeps small slices of Microsoft, Amazon, Alphabet and Digital Realty. WCLD costs 0.45% against 0.68%, and on $50,000 that is $225 a year against $340. If you want a concentrated bet on the largest cloud software names, CLOU is the closer fit; if you want breadth across smaller growth companies, WCLD is cheaper and broader.

Is IGV a cloud computing ETF?

Not really, though many people use it as one because it is big, liquid and cheap at 0.38%. IGV tracks a North American software index weighted by market value with an 8.5% cap, so the largest names dominate: Palo Alto Networks 10.4%, Microsoft 8.1%, Palantir 7.7%, CrowdStrike 7.3% and Oracle 6.3% in its June 30 filing, 39.7% in the top five. A quarter of the fund, 26.0%, sat in businesses that are neither cloud software nor cloud hardware: Cadence and Synopsys, which make chip design software, Electronic Arts and Take-Two, and 3.5% in bitcoin miners and Strategy, the company that holds bitcoin as its main asset. If you want software in general, IGV is a fair choice. If you want cloud, WCLD and CLOU are closer.

When is owning the stocks cheaper than a cloud computing ETF?

Once the balance is large enough, and cloud is an easy theme to hold directly because almost every large cloud software company lists in the US. A basket of 15 to 25 names such as Snowflake, Datadog, ServiceNow, Salesforce, Workday, Cloudflare, Zscaler, MongoDB, HubSpot, Atlassian, Twilio and Shopify covers most of what WCLD and CLOU hold, with no expense ratio. At 0.60%, SKYY costs $300 a year on $50,000 and $600 on $100,000, every year, on a balance you expect to grow.

Holding the shares also lets you take tax losses one stock at a time, and cloud software gives plenty of chances. Usage-priced companies swing with their customers' budgets: in 2023, when finance teams went line by line through their cloud bills, often with cloud cost management software, and cut usage, several data and observability companies saw growth slow sharply and their shares fell on single earnings reports while seat-priced application vendors held up. In your own basket you can sell the one that fell for a loss and keep the rest, which a fund does not let you do. Check the 30 day window with the wash sale calculator before you buy it back.

What you give up is the upkeep. You decide the weights, cap the leaders and rebalance them yourself, and you decide whether the hyperscalers belong in it. That is the part worth testing before you put money in. On our build your own cloud computing stocks index page you can pick the companies and weights, backtest the basket against SKYY, WCLD and the S&P 500 over real market history, and track it daily before you buy anything. Several cloud security names also sit in the security funds, and the same fee-per-exposure method is applied to them in our cheapest cybersecurity ETF ranking.

How we built these numbers

Fees are from the summary prospectuses: SKYY February 2, 2026, CLOU April 1, 2026, IGV July 31, 2026, FCLD October 30, 2025 and WCLD November 1, 2025 as supplemented September 30, 2026. Holdings are from First Trust's file for October 12, 2026, Global X's file for October 13, 2026, State Street's SPY file for October 12, 2026, Vanguard's VGT list for August 31, 2026, and SEC Form N-PORT filings for WCLD, FCLD and IGV for June 30, 2026. Spreads for SKYY (0.07%) and CLOU (0.14%) are the 30 day medians their issuers publish. Every holding was assigned to one group by its main business; the full list of judgment calls is in the sources note on the cloud computing index page. Holdings and fees change, so confirm them on the fund page before you buy. Indexes is not affiliated with any fund issuer named here, and backtested results are hypothetical.