By WisdomTree Investments
The remote job market has been on the rise in recent years, even before the coronavirus pandemic hit. As COVID-19 spreads, companies are increasingly asking employees to work from home. Our new reality has already impacted the way companies do business. In order for companies to stay afloat in these uncertain times, many have embraced a complete digital transformation by adapting tools that enable remote working.
Companies that often help the workforce to operate virtually “in the cloud” are top of mind. Zoom Video Communications, a cloud-based company that provides remote conferencing services that include a combination of video conferencing, chat, and online collaboration stands out. Slack is another cloud-based business that is helping employees across various industries communicate efficiently and effectively. There are several other cloud-based tools that companies are using to make employee-wide remote work as seamless as possible. Another example is DocuSign, which allows people to sign legal documents remotely and at scale. Dropbox allows employees to save and transfer files.
This trend toward operating in the cloud is leading to fast relative growth rates and outperformance for the cloud technology industry, even during this volatile time. While many businesses are facing unprecedented disruption, by evaluating their tools and considering adopting cost-saving cloud-based software could help to minimize this.
The WisdomTree Cloud Computing Fund, ticker WCLD, leverages the expertise of Bessemer Venture Partners (BVP), a leading early-stage investor in cloud-based businesses with more than a decade of investment success in the cloud computing industry. To learn more about WCLD, the WisdomTree Cloud Computing Fund, visit wisdomtree.com today.
As of 4/16/20, WCLD held 3.15% of its weight in Zoom Video Communications, Inc.
As of 4/16/20, WCLD held 2.22% of its weight in Slack.
As of 4/16/20, WCLD held 2.44% and of its weight in DocuSign.
As of 4/16/20, WCLD held 1.78% and of its weight in Dropbox.
References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
WCLD tracks the BVP Nasdaq Emerging Cloud Index.
There are risks associated with investing, including possible loss of principal. The Fund invests in cloud computing companies, which are heavily dependent on the Internet and utilizing a distributed network of servers over the Internet. Cloud computing companies may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress and government regulation. These companies typically face intense competition and potentially rapid product obsolescence. Additionally, many cloud computing companies store sensitive consumer information and could be the target of cybersecurity attacks and other types of theft, which could have a negative impact on these companies and the Fund. Securities of cloud computing companies tend to be more volatile than securities of companies that rely less heavily on technology and, specifically, on the Internet. Cloud computing companies can typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company’s operating results. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.