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

Shares of Oracle Corp.
ORCL,
-13.50%
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,
-2.12%,
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,
-2.88%,
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,
-4.64%,
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,
-0.55%,
which tracks the S&P 500
SPX,
-0.57%,
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.