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FDN - ETF AI Analysis
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First Trust Dow Jones Internet Index Fund (FDN)
Rating:72Outperform
Price Target:
$308.00
Positive Factors
Strong Top Holdings
Several major holdings, including Netflix, Meta Platforms, and Alphabet, have delivered strong year-to-date performance, driving the fund’s returns.
Sector Diversification
The ETF is spread across technology, communication services, and consumer cyclical sectors, reducing reliance on a single industry.
Reasonable Expense Ratio
The fund’s expense ratio is competitive compared to actively managed funds, helping investors keep more of their returns.
Negative Factors
High Concentration in Top Holdings
The top three positions make up nearly 30% of the portfolio, increasing exposure to individual stock risks.
Limited Geographic Exposure
With over 98% of assets in U.S. companies, the ETF lacks diversification across global markets.
Mixed Performance in Holdings
Some holdings, like Salesforce, have underperformed year-to-date, which could weigh on overall fund performance.
FDN vs. SPDR S&P 500 ETF (SPY)
AUM6.84B
RegionNorth America
Expense Ratio0.49%
Beta1.26
IssuerFirst Trust
Inception DateJun 19, 2006
Dividend YieldN/A
Asset ClassEquity
Index TrackedDJ Internet Composite
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume912,641
30 Day Avg. Volume537,985
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
340.65Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering42
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FDN Summary
The First Trust Dow Jones Internet Index Fund (FDN) is an ETF that focuses on companies in the internet sector, tracking the Dow Jones Internet Composite Index. It includes well-known names like Netflix and Meta Platforms, along with other businesses involved in e-commerce, social media, and cloud computing. This ETF is a great option for investors who want to tap into the growth potential of the digital economy while enjoying the diversification of an ETF. However, since it is heavily focused on tech and internet companies, its value can fluctuate significantly with changes in the technology sector.
How much will it cost me?FDN has an expense ratio of 0.49%, which means you’ll pay $4.90 per year for every $1,000 invested. This is slightly higher than average because it is a sector-focused ETF that requires active management to track the Dow Jones Internet Composite Index and maintain exposure to leading internet companies.
What would affect this ETF?FDN could benefit from continued growth in internet usage, e-commerce, and digital transformation, especially as its top holdings like Amazon, Meta, and Alphabet are leaders in these areas. However, rising interest rates or regulatory scrutiny on big tech companies could negatively impact the fund's performance, as these factors may increase costs or limit growth opportunities. Additionally, economic slowdowns could reduce consumer spending in sectors like e-commerce and online services, affecting the ETF's key holdings.
FDN Top 10 Holdings
The First Trust Dow Jones Internet Index Fund (FDN) is heavily concentrated in U.S.-based tech and communication giants, with Netflix and Alphabet leading the charge thanks to steady growth in AI and cloud services. DoorDash has been a bright spot, riding a wave of strong financial performance and operational efficiencies. However, Meta and Amazon have been lagging recently, with mixed technical signals and challenges in their core businesses. Overall, the fund’s focus on internet-driven innovation offers potential, but its reliance on a few big names adds a layer of risk.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Amazon | 10.34% | $687.64M | $2.49T | 8.77% | 76 Outperform | |
| Netflix | 9.73% | $646.96M | $467.33B | 30.94% | 69 Neutral | |
| Meta Platforms | 8.51% | $565.65M | $1.52T | 6.52% | 71 Outperform | |
| Alphabet Class A | 7.05% | $468.88M | $3.44T | 59.60% | 80 Outperform | |
| Cisco Systems | 6.15% | $408.85M | $307.48B | 35.71% | 77 Outperform | |
| Alphabet Class C | 5.67% | $377.32M | $3.44T | 58.68% | 86 Outperform | |
| Salesforce | 4.64% | $308.28M | $225.65B | -27.80% | 71 Outperform | |
| Booking Holdings | 4.21% | $279.87M | $154.85B | -3.90% | 63 Neutral | |
| Arista Networks | 3.94% | $262.31M | $160.26B | 30.74% | 83 Outperform | |
| Snowflake | 3.50% | $233.02M | $85.65B | 95.42% | 69 Neutral |
FDN Technical Analysis
Negative
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Price Trends
279.80
Negative
275.49
Negative
258.42
Positive
Market Momentum
-3.37
Positive
33.56
Neutral
18.66
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDN, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 277.09, equal to the 50-day MA of 279.80, and equal to the 200-day MA of 258.42, indicating a neutral trend. The MACD of -3.37 indicates Positive momentum. The RSI at 33.56 is Neutral, neither overbought nor oversold. The STOCH value of 18.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDN.
FDN Peer Comparison
Comparison Results
Performance Comparison
FDN
First Trust Dow Jones Internet Index Fund
264.30
29.41
12.52%
PAVE
Global X U.S. Infrastructure Development ETF
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THRO
Ishares U.S. Thematic Rotation Active Etf
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USCA
Xtrackers MSCI USA Climate Action Equity ETF
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IFRA
iShares U.S. Infrastructure ETF
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JTEK
JPMorgan U.S. Tech Leaders ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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