First Trust Cloud Computing ETF

Frequently Asked Questions About SKYY

What does SKYY invest in?

The First Trust Cloud Computing ETF is an exchange-traded fund whose primary goal is to replicate the financial performance, encompassing both price movements and dividend income, of the ISE CTA Cloud Computing Index. This objective is pursued before accounting for the fund's internal fees and operational costs.

What is the expense ratio of SKYY?

First Trust Cloud Computing ETF (SKYY) charges an expense ratio of 0.60%. This is the annual fee deducted from fund assets to cover management and operations.

What is SKYY's distribution yield?

SKYY's trailing-twelve-month yield is —, calculated from the sum of distributions over the past year divided by the current price.

How does SKYY's covered-call strategy work?

SKYY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is SKYY?

First Trust Cloud Computing ETF (SKYY) manages $3.57B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is SKYY actively managed or an index fund?

SKYY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.