Cloud computing ETFs can't gain support from the surging VMware
Just_Super/E+ via Getty Images

Cloud computing exchange traded funds can't pick up ground on Monday even as shares of VMware Inc. (NYSE:VMW) have surged. The California-based firm jumped 19% at the open on reports that it has been approached by Broadcom (AVGO) for a potential takeover deal.
The First Trust Cloud Computing ETF (NASDAQ:SKYY) has one of the largest held portfolio positions in VMW compared to any other fund on the market.
SKYY offers the financial community access to an equal weight index fund that is designed to capitalize on the cloud computing space. SKYY has a 3.54% weighting in VMware and trades lower on the day despite VMW's surge.
Additionally, SKYY has 72 holdings and a 0.60% expense ratio.
Moreover, SKYY is not the only cloud computing exchange traded fund to drift lower on the day. Two other ETFs that are trading lower are the Fidelity Cloud Computing ETF (FCLD) and the Direxion Daily Cloud Computing Bull 2X Shares (CLDL).
Daily price action: VMW +19.7%, SKYY -0.3%, FCLD -0.2%, and CLDL -3.3%.
Shares of VMW have spiked on the news that Broadcom is said to be in talks to acquire the cloud-computing firm.