CLOD Profile
Themes Cloud Computing ETF aims to track the performance of the Solactive Cloud Computing Index, which encompasses a diverse range of companies engaged in the cloud computing sector across developed markets. The index includes firms of various sizesâ€small-cap, mid-cap, and large-capâ€that are involved in distinct sub-industries within the cloud computing domain. This broad scope ensures comprehensive coverage of the cloud computing landscape and reflects the sector's multifaceted nature.
The selection process for the index starts with a large universe of companies classified within specific cloud computing sub-industries. These sub-industries include internet infrastructure software, data support software, digital security software, data infrastructure software, data architecture software, and e-commerce infrastructure software. From this universe, firms are ranked based on their free float market capitalization. The top 50 securities by market cap are then chosen to construct the index, with a particular emphasis on including 20 companies from internet infrastructure and data support software, 10 each from digital security, data infrastructure, and data architecture software, and 3 from e-commerce infrastructure software.
To maintain a balanced and diversified portfolio, the index employs a cap of 4.5% on the market capitalization of individual securities. This cap is designed to prevent excessive concentration in any single stock, thereby ensuring that no single company disproportionately influences the index's performance. The weighting of each constituent in the index is determined by its free float market capitalization, which reflects its relative size and influence within the cloud computing sector.
Themes Cloud Computing ETF is rebalanced on a quarterly basis to accurately reflect changes in the cloud computing industry and adjust for market fluctuations. This periodic rebalancing helps maintain alignment with the underlying Solactive Cloud Computing Index and ensures that the ETF continues to provide investors with targeted exposure to the dynamic and evolving cloud computing sector. The fund's strategy is designed to capture the growth potential of leading companies in cloud computing while mitigating risks through diversification and regular adjustments.
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