The WisdomTree Cloud Computing ETF (WCLD) tracks the BVP Nasdaq Emerging Cloud Index, providing exposure to companies primarily focused on cloud software and services.
Unlike traditional tech funds, WCLD employs an equal-weighted methodology to mitigate mega-cap concentration and highlight high-growth mid-cap stocks. The fund enforces strict selection criteria, requiring new holdings to demonstrate revenue growth of at least 15%, ensuring the portfolio targets the most dynamic segments of the cloud computing market.
However, for long-term Indian investors, WCLD carries a critical structural risk: the US estate tax. If you hold US-domiciled assets like WCLD and your holdings exceed $60,000, your estate faces US estate tax at progressive rates of up to 40% on your death. On a $500,000 holding, that works out to roughly 29% of the portfolio.
This blog gives you all the information you need about the top UCITS alternatives. The alternatives listed below include the UCITS version of WCLD, which tracks the same BVP Nasdaq Emerging Cloud Index, as well as funds with different weighting strategies or broader exposure to established tech companies, all without the estate tax risk.
Table of contents
- Why Indians are looking for UCITS alternatives to WCLD
- Popular UCITS alternatives for WCLD
- Invest in UCITS ETFs with Paasa
Why Indians are looking for UCITS alternatives to WCLD
Indian investors are shifting to UCITS alternatives because they solve the tax risks and inefficiencies of US ETFs like WCLD while providing very similar exposure.
- Estate Tax Protection: UCITS funds are typically domiciled in Ireland. They are not considered "US-situs" assets, meaning they are 100% exempt from US Estate Tax.
- Tax Deferral (Accumulation): Unlike WCLD, which forces taxable cash dividends on you, many UCITS funds offer "Accumulating" classes that reinvest dividends automatically. This defers your Indian tax liability until you sell the fund, and converts what would have been slab-rate dividend income into capital gains.
To learn more about UCITS ETFs and why Indian investors are choosing them, read our guide on UCITS ETFs.
Popular UCITS alternatives for WCLD
Here are the top three UCITS funds that provide exposure to companies focused on cloud software and services, serving as the best proxies for the cloud computing market.
1. WisdomTree Cloud Computing UCITS ETF
This is the UCITS version of the US-domiciled WCLD, managed by the same provider (WisdomTree) and tracking the same BVP Nasdaq Emerging Cloud Index with the same equal weighting. That gives you the same exposure to fast-growing cloud software and services companies.
Because the fund equal-weights its holdings, it trims recent winners and adds to laggards at each rebalance, which makes it the most direct replacement for WCLD.
- Ticker: WCLD (LSE, USD) / KLWD (LSE, GBX)
- Total Expense Ratio (TER): 0.40%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings: Shopify, Zoom Video Communications, Cloudflare, SentinelOne, Datadog.
2. First Trust Cloud Computing UCITS ETF
This fund is the UCITS counterpart of the popular US ETF SKYY and takes a more balanced approach to the cloud theme. If you want cloud exposure but are concerned about the volatility of WCLD's emerging-company strategy, it is a good alternative.
It tracks the ISE Cloud Computing Index, which sorts companies into pure-play cloud, non-pure-play cloud and technology conglomerates. Blending these groups gives you a broader and potentially less volatile route into cloud computing, with established names such as Oracle and IBM among its top holdings.
- Ticker: SKYU (LSE, USD) / FSKY (LSE, GBX)
- Total Expense Ratio (TER): 0.60%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings: Nutanix, Oracle, IBM, Pure Storage, Arista Networks.
3. Global X Cloud Computing UCITS ETF
This is the UCITS counterpart of the US ETF CLOU and the main competitor to WCLD. While WCLD equal-weights its holdings, CLO uses capped market-cap weighting, so a cloud company that grows takes up a larger share of the fund.
That suits investors who prefer to let winners run rather than trim them at every rebalance.
- Ticker: CLO (LSE, USD)
- Total Expense Ratio (TER): 0.55%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings include: Zscaler, Akamai Technologies, Digital Realty Trust, Check Point Software.
More UCITS alternatives: UCITS alternatives to BUG and UCITS alternatives to SRVR.
Related: What are UCITS ETFs? and Should you switch from US ETFs to UCITS?
Invest in UCITS ETFs with Paasa
Paasa is a global investing platform designed for Indian residents and NRIs. We provide direct access to 11 markets: the US, Canada, the UK, Germany, France, Switzerland, the Netherlands, South Korea, Japan, Hong Kong and Singapore.
This means you are not restricted to just US ETFs like WCLD; you can also buy tax-efficient UCITS equivalents using Paasa.
The compliance advantage
Paasa makes global investing easy and also removes the compliance friction with a specialized layer built for Indian residents and NRIs:
- Schedule FA reporting: Exact reports you need for your Indian tax returns, eliminating the need for manual calculations.
- FEMA & LRS guidance: Guidance on FEMA regulations and LRS limits to ensure compliance.
Whether you are buying direct US stocks or investing in UCITS ETFs listed on European exchanges, Paasa provides global access with India-specific compliance and tax support.
