ETFs focused on enterprise software and cloud computing stole the spotlight this week with impressive gains, driven largely by SAP's solid earnings report. The ADRH SAP SE ETF topped the charts, surging 21.22% after SAP revealed a €22.9 billion cloud order backlog, marking a 27% growth year-over-year on a constant-currency basis.
SAP’s cloud revenue growth ranged between 22% and 24%, with its Cloud ERP Suite revenue up by 25%. Despite lowering its operating profit guidance due to integration costs from recent acquisitions Dremio and Prior Labs, SAP maintained its full-year cloud revenue forecast. Investor confidence was further boosted by a fresh share buyback plan, successful antitrust clearances, and insider buying from the CEO.
The WisdomTree Cloud Computing Fund (WCLD) followed with an 11.14% increase. This ETF tracks emerging cloud software firms spanning cybersecurity, infrastructure, and data services. The uptick reflects sustained investor appetite for SaaS companies and cloud platforms showing strong revenue growth potential.
Gaming and Innovation ETFs also Gain Momentum
Video game ETFs showed double-digit gains as well. The Roundhill Video Games ETF (NERD) climbed 10.79%, while the Global X Video Games & Esports ETF (HERO) rose 10.68%. Companies within these funds benefit from expanding live-service gaming models and heightened engagement in esports and digital entertainment.
The Alger Russell Innovation ETF (INVN) rounded out the top five, advancing 10.58%. This fund invests across tech, healthcare, consumer, and digital payments sectors, fueled by investor interest in AI adoption and digital transformation trends.
