FDN - ETF AI Analysis

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First Trust Dow Jones Internet Index Fund (FDN)

Rating:72Outperform

Price Target:―

FDN, the First Trust Dow Jones Internet Index Fund, has a solid overall rating driven mainly by large positions in high-quality tech leaders like Alphabet (GOOGL/GOOG), Meta, and Amazon, which benefit from strong financial performance, positive earnings sentiment, and strategic investments in AI and cloud services. Holdings such as Cisco, Arista Networks, Salesforce, and Netflix further support the rating with generally bullish outlooks and growth-focused strategies, though many trade at high valuations that call for some caution. The main risk factor is the fund’s heavy concentration in internet and technology-related companies, which can increase volatility and make the ETF more sensitive to sector-specific downturns, while more challenged names like Booking Holdings, with leverage and bearish technical signals, modestly weigh on the overall score.

Positive Factors

Large, Established Internet Leaders

The ETF’s biggest positions are in well-known, financially strong internet companies, which can provide a solid foundation for long-term growth.

Focused Exposure to Internet and Tech-Related Sectors

Most of the fund is invested in technology, communication services, and consumer cyclical companies that are closely tied to the growth of the online economy.

Significant Fund Size

With several billion dollars in assets, the ETF is large and established, which can support better trading liquidity for investors.

Negative Factors

Recent Weak Performance

The fund has shown negative returns over the past month, three months, and year-to-date, indicating recent performance has been weak.

High Concentration in Top Holdings

A small group of large positions makes up a big share of the portfolio, increasing the impact if any of these companies struggle.

Relatively High Expense Ratio

The fund’s fee is on the higher side for an ETF, which can eat into returns over time compared with lower-cost alternatives.

FDN vs. SPDR S&P 500 ETF (SPY)

AUM6.50B

RegionNorth America

Expense Ratio0.49%

Beta1.25

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. Volume364,568

30 Day Avg. Volume506,258

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

342.11

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering41

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FDN Summary

FDN is an ETF that follows the Dow Jones Internet Composite Index, focusing on companies that make money from the internet, such as e‑commerce, online services, and cloud computing. It holds well-known names like Amazon and Meta Platforms (Facebook’s parent company), along with other major online and tech businesses. Someone might invest in FDN to seek growth from the continued expansion of online shopping, digital ads, and cloud services, while still getting diversification across many internet companies. A key risk is that it is heavily focused on internet and tech stocks, so its price can swing a lot with that 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

FDN is very much an internet story, with a heavy tilt toward U.S. e-commerce, online ads, and cloud. Alphabet’s twin share classes have been rising and now act as key engines for the fund, while Amazon has been quietly supportive rather than explosive. On the other side, Meta, Netflix, and Salesforce have been losing steam, dragging on recent returns, and DoorDash hasn’t helped either. Overall, the ETF is concentrated in a handful of big U.S. tech and communication names, so its fate is closely tied to sentiment around online platforms and digital advertising.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AMZN	Amazon	10.72%	$695.14M	$2.62T	2.50%	71 Outperform
META	Meta Platforms	10.52%	$681.99M	$1.70T	-1.15%	76 Outperform
NFLX	Netflix	7.76%	$503.02M	$361.33B	-12.51%	73 Outperform
CSCO	Cisco Systems	6.73%	$436.42M	$310.87B	32.59%	77 Outperform
GOOGL	Alphabet Class A	5.96%	$386.26M	$4.04T	71.20%	85 Outperform
ANET	Arista Networks	5.22%	$338.46M	$184.72B	39.23%	83 Outperform
GOOG	Alphabet Class C	4.76%	$308.96M	$4.04T	70.54%	82 Outperform
BKNG	Booking Holdings	4.43%	$287.54M	$166.11B	9.14%	63 Neutral
CRM	Salesforce	3.97%	$257.43M	$214.13B	-35.44%	80 Outperform
DASH	DoorDash	3.31%	$214.67M	$89.37B	11.24%	76 Outperform

FDN Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

267.65

Negative

100DMA

274.20

Negative

200DMA

265.34

Positive

Market Momentum

MACD

-1.49

Negative

RSI

50.07

Neutral

STOCH

81.79

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDN, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 266.05, equal to the 50-day MA of 267.65, and equal to the 200-day MA of 265.34, indicating a neutral trend. The MACD of -1.49 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 81.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDN.

FDN Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FDN	―	―	$6.50B	0.49%	―
THRO	―	―	$7.36B	0.57%	―
IFRA	―	―	$3.47B	0.30%	―
JTEK	―	―	$3.36B	0.65%	―
ITB	―	―	$2.93B	0.38%	―
USCA	―	―	$2.88B	0.07%	―

Performance Comparison

FDN

First Trust Dow Jones Internet Index Fund

266.50

5.03

1.92%

THRO

Ishares U.S. Thematic Rotation Active Etf

―

IFRA

iShares U.S. Infrastructure ETF

―

JTEK

JPMorgan U.S. Tech Leaders ETF

―

ITB

iShares U.S. Home Construction ETF

―

USCA

Xtrackers MSCI USA Climate Action Equity ETF

―

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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