Research > ETFs > ETF / ETP Commentary > 

Microsoft, Google, and Amazon Collaborate in Cloud

Three of the giant tech companies that rely heavily on cloud computing have announced an industry initiative that covers protections of customer data contained in cloud computing services and abides by governmental regulations.Microsoft, Google, Amazon, and several other companies have committed to engaging in protecting cloud-based data, reported CNET. The initiative is called the Trusted Cloud Principles and consists of guidelines regarding government access and customer rights and protections.Key points include that governments should, with very few exceptions, always engage customers first, that customers should have a right to notice, that cloud providers should have the right to protect customers’ interests, that the responsibility of resolving conflicts of law falls on government, and that governments should support and enable cross-border flows of data.“Through this initiative, we commit to working with governments to ensure the free flow of data, to promote public safety, and to protect privacy and data security in the cloud,” Microsoft wrote in a LinkdIn post.Putnam’s PGRO Invests in the Cloud Computing ThematicThe Putnam Focused Large Cap Growth ETF (PGRO) is an actively managed, non-diversified fund that focuses on large, growth-oriented U.S. companies that profit in the midst of recovery and a growing economy, and it invests along 12 different growth themes.The fund selects companies similar in size to those in the Russell 1000 Growth Index whose market caps are between $2 billion and $2.1 trillion. Putnam Investment considers a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows, and dividends when buying and selling investments.As a semi-transparent fund using the Fidelity model, PGRO does not disclose its current holdings daily. Instead, it publishes a tracking basket of previously disclosed holdings, liquid ETFs that mirror the portfolio’s investment strategy, and cash and cash equivalents. The tracking portfolio is designed to track the actual fund portfolio’s overall performance closely, and actual portfolio reports are released monthly.One of the growth themes is a focus on cloud infrastructure and software, and it recognizes that businesses continue to move their IT systems from local databases onto cloud-based ones. Microsoft’s Azure is the second most widely used cloud computer service behind Amazon’s Web Services, and Putnam believes that Azure has the potential to reach over 30% growth by 2023 per their thematic brochure.As of the end of August, PGRO had holdings in Microsoft (MSFT) at 9.90%, Apple (AAPL) at 8.20%, and Amazon.com (AMZN) at 7.28%.PGRO has an expense ratio of 0.55% and had 39 holdings as of the end of August.For more news, information, and strategy, visit the Big Ideas Channel.

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.