Flaharty Takes a Fresh Stake in Cloud Computing With $19.1M SKYY Position

According to a recent SEC filing, Flaharty Asset Management, LLC, initiated a new position in the First Trust Cloud Computing ETF (NASDAQ:SKYY), acquiring 163,815 shares during Q1 2026. The estimated transaction value was $19.1 million, based on the average closing price for the quarter. The position's value at quarter-end was $17.9 million, reflecting price movement over the period.

This new position makes up 2.2% of Flaharty Asset Management, LLC's reported AUM as of March 31, 2026.

NASDAQ: FTSL: $35.8 million (4.4% of AUM)

As of May 4, 2026, SKYY shares were trading at $126.64, up about 18% over the past year -- underperforming the S&P 500 by roughly 10 percentage points, and trailing its Technology category benchmark by nearly 13 percentage points.

The First Trust Cloud Computing ETF (SKYY) tracks the ISE CTA Cloud Computing Index, offering diversified exposure to companies across the cloud sector.

Holds equity securities spanning cloud infrastructure, platform, and software providers

The fund's rules-based approach provides investors with exposure to both established and emerging players in the space

Flaharty Asset Management's decision to open a fresh $19.1 million position in SKYY is a meaningful signal -- even if it lands outside the firm's top five holdings. This is a sizable new bet on the cloud computing theme from a firm that appears to favor ETF-driven diversification across its portfolio.

SKYY's recent performance hasn’t been so notable. The ETF is up roughly 18% over the past year, but it has lagged the broader S&P 500 by about 10 percentage points and trailed its own Technology category benchmark by nearly 13 points -- a gap that might give some investors pause. That said, cloud computing's long-term growth story remains compelling. Enterprise cloud spending continues to expand globally, driven by AI adoption, digital transformation, and the ongoing migration away from on-premise servers and data centers.

For retail investors, the appeal of a fund like SKYY is straightforward: it’s a diversified, rules-based way to gain exposure to the cloud sector without betting on a single stock. SKYY holds a broad basket of infrastructure, platform, and software names, which can help smooth out the volatility that comes with picking individual cloud winners. It's worth noting, however, that SKYY's 0.60% expense ratio is meaningfully higher than a broad index fund like the Vanguard S&P 500 ETF (NYSEMKT:VOO), which charges just 0.03% -- a real cost consideration for long-term holders who may be weighing a thematic tilt against simpler, cheaper alternatives.

Bottom line: Institutional interest like this is a reminder that even in a sector that's had a bumpy stretch, the long-term thesis around cloud computing continues to attract serious capital.

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Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

Flaharty Takes a Fresh Stake in Cloud Computing With $19.1M SKYY Position was originally published by The Motley Fool