: Oracle’s big stock selloff acts as a big drag on both software and cloud ETFs

Shares of Oracle Corp. ORCL tumbled 12.1% in midday trading toward its biggest one-day selloff in 21 years in the wake of a disappointing earnings report, and were having an oversized drag on some exchange-traded funds that track both the software and cloud sectors and carry relatively large positions in Oracle’s stock. The Fidelity Cloud Computing ETF FCLD, of which Oracle’s stock is the most heavily weighted component with a 4.5% weighting, shed 1.9% with 38 of 50 equity components seeing red. The iShares Expanded Tech-Software Sector ETF IGV, which has a Oracle has an 8.1% weighting, fell 2.2% with 88 of 117 equity components losing ground; and the Direxion Daily Cloud Computing Bull 2X ETF CLDL, of which Oracle has a 4.3% weighting, shed 3.5% with 44 of 52 components trading lower. Oracle’s stock was the third-most heavily weighted component in both the IGV and the CLDL. Meanwhile, The SPDR S&P 500 ETF SPY, which tracks the S&P 500 SPX, declined 0.3% with less than half of its components (46%) trading lower. Oracle is the 35th most heavily weighted SPY component, with a 0.52% weight.

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