Average Daily Volume
519.4K
Fund Overview
The First Trust Dow Jones Internet Index Fund (FDN) is an ETF that seeks to track the performance of the Dow Jones Internet Composite Index. This index includes companies that derive a significant portion of their revenue from internet-related activities, such as e-commerce, social media, cloud computing, and online advertising. FDN provides exposure to leading internet and technology companies, including giants like Amazon, Facebook (now Meta), and Alphabet (Google). The fund is designed for investors seeking growth opportunities in the rapidly evolving digital economy. FDN is one of the oldest and most established internet-focused ETFs, offering liquidity and a competitive expense ratio.
- Asset Class
-
Equity
- Industry
-
Internet
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
32 %
- Dividend Date
-
Why Invest in the FDN ETF?
Potential Benefits
- Exposure to high-growth internet and technology companies driving digital transformation.
- Diversification across e-commerce, cloud computing, social media, and online advertising sectors.
- Liquidity and transparency due to its long-standing presence in the market.
- Competitive expense ratio compared to actively managed internet-focused funds.
- Potential for capital appreciation as internet-related businesses continue to expand globally.
Potential Risks
- Concentration risk in top holdings, which can lead to volatility if those stocks underperform.
- Sensitivity to regulatory changes affecting internet companies, such as data privacy laws.
- Vulnerability to macroeconomic factors like interest rate hikes impacting growth stocks.
- Competition and rapid technological changes may disrupt some holdings' business models.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-3.2%
|
-6.6%
|
-3.9%
|
+12.6%
|
+7.6%
|
-6.6%
|
+3.8%
|
+6.4%
|
-1.4%
|
+2.9%
|
-
|
-
|
| 2025 |
+8.1%
|
-6.3%
|
-9.8%
|
+4.1%
|
+8.6%
|
+7.2%
|
+1.7%
|
+1.0%
|
+1.2%
|
+1.5%
|
-4.9%
|
-0.4%
|
| 2024 |
+2.6%
|
+5.8%
|
+1.3%
|
-4.9%
|
-0.7%
|
+5.8%
|
-3.1%
|
+2.1%
|
+4.4%
|
+3.6%
|
+10.3%
|
+0.5%
|
| 2023 |
+14.7%
|
-3.1%
|
+8.0%
|
-3.8%
|
+9.9%
|
+4.3%
|
+6.6%
|
-2.4%
|
-5.9%
|
-4.2%
|
+12.3%
|
+8.7%
|
| 2022 |
-12.2%
|
-5.4%
|
+0.1%
|
-17.6%
|
-9.7%
|
-9.1%
|
+11.6%
|
-2.0%
|
-9.2%
|
+2.1%
|
+2.8%
|
-7.0%
|
| 2021 |
+1.8%
|
+3.7%
|
-2.7%
|
+4.9%
|
-1.3%
|
+8.4%
|
-1.2%
|
+3.1%
|
-5.4%
|
+3.6%
|
-6.0%
|
-1.6%
|
| 2020 |
+3.9%
|
-4.9%
|
-9.9%
|
+19.4%
|
+10.4%
|
+4.6%
|
+7.8%
|
+7.9%
|
-5.1%
|
-0.7%
|
+10.9%
|
+2.3%
|
| 2019 |
+13.4%
|
+3.5%
|
+1.4%
|
+6.4%
|
-6.6%
|
+4.3%
|
+1.6%
|
-6.1%
|
-1.8%
|
-0.7%
|
+3.0%
|
+1.0%
|
| 2018 |
+10.9%
|
+1.0%
|
-2.1%
|
+2.8%
|
+8.5%
|
+2.4%
|
-1.6%
|
+7.6%
|
-2.8%
|
-11.0%
|
+0.2%
|
-7.6%
|
| 2017 |
+6.9%
|
+1.0%
|
+2.1%
|
+4.8%
|
+2.7%
|
+0.1%
|
+4.4%
|
+1.7%
|
+1.8%
|
+5.0%
|
+1.4%
|
+0.9%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AMZN
|
AMAZON.COM INC |
9.8 % |
|
NFLX
|
NETFLIX INC |
9.6 % |
|
META
|
META PLATFORMS INC CLASS A |
9.4 % |
|
CRM
|
SALESFORCE INC |
6.0 % |
|
GOOGL
|
ALPHABET INC CLASS A |
5.4 % |
|
BKNG
|
BOOKING HOLDINGS INC |
4.9 % |
|
CSCO
|
CISCO SYSTEMS INC |
4.5 % |
|
GOOG
|
ALPHABET INC CLASS C |
4.5 % |
|
ANET
|
ARISTA NETWORKS INC |
4.0 % |
|
PYPL
|
PAYPAL HOLDINGS INC |
3.2 % |
Top 10 holdings shown, out of 42 total holdings.
Related ETFs: FDN vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
FDN tracks the Dow Jones Internet Composite Index, which includes companies generating significant revenue from internet-related activities. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The fund primarily holds common stocks of U.S.-listed internet firms, with a focus on growth-oriented names. FDN is rebalanced quarterly to ensure alignment with the index composition. Unlike actively managed funds, FDN follows a passive strategy, aiming to replicate index performance with low turnover.
Frequently Asked Questions
What types of companies are included in FDN?
FDN holds companies that derive significant revenue from internet-related activities, including e-commerce, social media, cloud computing, and online advertising.
How often is FDN rebalanced?
FDN is rebalanced quarterly to align with the Dow Jones Internet Composite Index.
Is FDN suitable for long-term growth investors?
Yes, FDN is designed for investors seeking long-term growth through exposure to leading internet and technology companies.
Does FDN invest in international companies?
FDN primarily focuses on U.S.-listed companies but may include some firms with global operations.
Industry Overview
The First Trust Dow Jones Internet Index Fund (FDN) provides targeted exposure to the internet sector, a critical driver of modern economic growth. The internet industry encompasses e-commerce, digital advertising, cloud services, and social media, all of which have seen exponential growth over the past decade. FDN allows investors to capitalize on trends like remote work, online shopping, and digital entertainment. While the sector offers high growth potential, it also faces risks such as regulatory scrutiny and market saturation in certain segments. Investing in FDN is a way to gain diversified exposure to leading innovators in the digital space.
Alternative Comparison
Compared to ARKW (ARK Next Generation Internet ETF), FDN offers a more traditional, index-based approach to internet investing, whereas ARKW is actively managed and focuses on disruptive innovation. FDN also differs from PNQI (Invesco NASDAQ Internet ETF) in its index methodology—FDN uses the Dow Jones Internet Composite, while PNQI tracks the NASDAQ Internet Index. FDN's expense ratio is competitive with these peers, making it a cost-effective choice for passive exposure to internet stocks.
Issuer Overview
First Trust Advisors L.P. is the issuer of FDN and a well-known provider of ETFs and mutual funds. The firm specializes in thematic and sector-specific investment strategies, often partnering with index providers to create innovative products. First Trust is recognized for its expertise in niche markets and has a strong track record in managing passively indexed and actively managed funds.
Conclusion
FDN is a well-established ETF providing targeted exposure to the high-growth internet sector. Its passive strategy, liquidity, and competitive fees make it a compelling option for investors seeking to capitalize on digital economy trends. While the fund carries risks associated with concentration and regulatory pressures, its diversified holdings and focus on industry leaders offer a balanced approach to internet investing.
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