Mirae Asset Global Investments Co. said Global X, a U.S.-based manager of exchange-traded funds (ETFs), listed its fund investing in cloud computing-related companies on the Nasdaq Exchange on April 16 (local time).
The cloud computing market is expected to grow by 14.6 percent per annum to US$323 billion (366.12 trillion won) by 2022, according to the data from Global X’s research team.
The team also predicted that US$1.30 trillion (1,473.55 trillion won) out of worldwide IT costs would be affected directly and indirectly by the cloud market. Data analyst ICE Data Services expected that nearly half of all data stored around the world would reside in public cloud environments, which can be accessed by anyone with the Internet, by 2025.
The Global X Cloud Computing ETF (CLOU) tracks the Indxx Global Cloud Computing Index. The index includes 36 firms with 88.48 percent of the constituents from the United States, 4.78 percent from Canada, 3.93 percent from New Zealand and 2.83 percent from China. Their cumulative rate of return from the first day of index computation in November 2011 to April 12, 2019, stood at 277 percent and their annual yield exceeds 27 percent.
index will mostly include firms that derive at least 50 percent of their revenue from the cloud computing sector, including cloud server, storage, database, networking and software.
In addition, it invests in companies which have high sales in the public cloud sector, such as Amazon, Google and Microsoft. This also covers component producers and real estate investment trusts (REITs) involved in owning and managing data centers related to cloud computing.
South Korean investors are able to invest in the CLOU ETF through securities companies which are licensed to grade foreign stocks, including Mirae Asset Daewoo.
Mirae Asset Global Investments acquired Global X with an operating assets of 11 trillion won (US$9.70 billion), which was considered a rising star in the U.S. market that accounted for more than 70 percent of the global ETF market, last year. Founded in 2008 with a catch phrase of “Beyond Ordinary ETFs,” Global X provides various ETFs ranging from BOTZ ETF investing in robotics and artificial intelligence (AI) technologies to differentiated products related to theme and income, beyond ordinary ETFs.
Mirae Asset operates about 340 ETFs in Canada, Hong Kong and Columbia (Horizons ETFs), in South Korea (TIGER) and in Australia (BetaShares). The company’s global ETFs ranked 18th among global ETF operators in terms of net asset as of the end of March, according to global ETF research firm ETFGI. Furthermore, Mirae Asset has recently listed its EFTs in Brazil and India, aggressively expanding its business to global EFT markets.