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It's been years since cloud computing became a technology buzzword, and the buzz hasn't really let up. Now, an ETF that tracks that industry is in IBD's ETF Leaders screen.

First Trust Cloud Computing ETF (SKYY) holds 30 stocks in the cloud business, either providers or heavy users of cloud computing the data and software shared over the internet rather than on PC hard drives.

Some companies in the fund are cloud-computing pure plays, while others are big users or merely provide support for the cloud-computing space, according to First Trust. About 10% of the portfolio is in what the fund calls technology conglomerates, which are large companies "with business models that indirectly utilize or support the use of cloud-computing technology," the prospectus explains.

Amazon.com (AMZN), for instance, got about 15% of sales last year from Web Services, its cloud business that has emerged as a major provider of cloud infrastructure services.

Facebook (FB), Netflix (NFLX) and Amazon are the three biggest holdings. With Alphabet (GOOGL) as another large holding, First Trust Cloud Computing is somewhat of a "FANG" ETF, the term used to describe the four internet giants Facebook, Amazon, Netflix and Google's parent company, Alphabet.

The FANG stocks are trading near highs and have contributed to the ETF's success. So have other components. SAP (SAP), the German business software company, has made a strong advance since a July bottom. Equinix (EQIX), a real estate investment trust that owns server farms, has advanced well for more than two years, despite a plateau in the second half of 2016.

VMware (VMW) is still recovering from a deep decline. Apple (AAPL) has rallied more than 20% from a Jan. 6 breakout and has been a big contributor to the ETF's gains this year. Adobe Systems (ADBE) has climbed about 18% from a 111.19 entry.

The ETF is trading near record highs. Although it's extended from its most recent breakout in July, shares are just above the 38.45 buy point of a three-weeks-tight pattern. Such formations can be used to buy shares, though they are not as prime opportunities as breakouts from bases. Shares have found support at the 50-day moving average since their run started in July, a positive sign.

First Trust Cloud Computing is up about 12% so far this year. Last year, it climbed 15.4% and had its best year in 2013, when it roared more than 33%. The ETF started trading in 2011. The biggest price decline was 27% in the fund's first year of operation.

Stocks the ETF buys must have a minimum market capitalization of $100 million. The median market cap is $34.3 billion, making it a predominantly big-cap fund.

The IBD ETF Leaders index shows the performance of a model portfolio of exchange traded funds that are leading the overall market. A computer algorithm selects the ETFs based on relative strength and other objective performance ratings, with periodic adjustments for market trends and conditions. The universe from which the ETFs are selected includes the funds listed below.

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This Cloud Computing ETF Is Loaded With FANG Stocks | Stock ... - Investor's Business Daily