FDNI - ETF AI Analysis

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First Trust Dow Jones International Internet ETF (FDNI)

Rating:59Neutral

Price Target:―

The ETF FDNI has a balanced overall rating, reflecting both strong and weaker holdings. Tencent Holdings stands out as a key driver of the fund’s rating, thanks to its robust financial performance, strategic advancements in AI, and positive earnings outlook. However, holdings like Spotify and JD.com may have slightly held back the rating due to bearish technical indicators and challenges in profitability and cash flow. Investors should note the ETF's concentration in international internet companies, which could pose risks tied to sector-specific volatility.

Positive Factors

Strong Top Holdings

Several key holdings, including Alibaba and Tencent, have delivered strong year-to-date performance, supporting the ETF’s overall returns.

Global Diversification

The ETF invests across multiple countries, including Hong Kong, the U.S., and Europe, reducing reliance on a single geographic region.

Exposure to Growth Sectors

The fund focuses on high-growth sectors like Communication Services, Consumer Cyclical, and Technology, which have strong long-term potential.

Negative Factors

High Geographic Concentration

Nearly 73% of the portfolio is concentrated in Hong Kong and the U.S., which may limit exposure to other global markets.

Underperforming Holdings

Some holdings, such as Meituan, have shown negative year-to-date performance, potentially dragging down overall returns.

Above-Average Expense Ratio

The ETF’s expense ratio of 0.65% is higher than many comparable funds, which could reduce net returns over time.

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

AUM88.55M

RegionGlobal Ex-U.S.

Expense Ratio0.65%

Beta1.03

IssuerFirst Trust

Inception DateNov 05, 2018

Dividend Yield0.84%

Asset ClassEquity

Index TrackedDow Jones International Internet Index (USD)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume11,257

30 Day Avg. Volume30,457

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

43.80

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering35

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FDNI Summary

The First Trust Dow Jones International Internet ETF (FDNI) is an investment fund focused on international internet companies. It follows the Dow Jones International Internet Index, which includes businesses outside the U.S. that generate significant revenue from online operations like e-commerce and digital services. Some well-known companies in the ETF are Shopify and Alibaba. Investors might consider FDNI for its potential growth as it targets innovative, tech-driven companies shaping the digital world. However, it’s important to note that the ETF is heavily influenced by the performance of internet and tech sectors, which can be volatile.

How much will it cost me?The expense ratio for the First Trust Dow Jones International Internet ETF (FDNI) is 0.65%, which means you’ll pay $6.50 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on a specific niche of international internet companies, requiring more research and management effort.

What would affect this ETF?FDNI could benefit from the continued growth of e-commerce, cloud computing, and digital communication globally, especially as internet adoption increases in emerging markets. However, it may face challenges from regulatory changes in key regions like China, where several top holdings are based, and economic slowdowns that could impact consumer spending and technology investments. Interest rate hikes could also negatively affect high-growth tech companies within the ETF.

FDNI Top 10 Holdings

The FDNI ETF is heavily concentrated in international internet giants, with Alibaba and Shopify leading the charge in e-commerce innovation, though their recent stock performance has been mixed, showing signs of slowing momentum. Tencent and Spotify add diversity with their focus on gaming and digital services, but bearish trends and valuation concerns have held them back. PDD Holdings and Meituan are struggling under competitive and regulatory pressures, dragging on the fund’s overall performance. With a strong tilt toward Communication Services and Consumer Cyclical sectors, this fund is a bet on global digital transformation outside the U.S.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
9988	Alibaba Group Holding Ltd.	11.55%	$10.18M	HK$3.00T	83.42%	71 Outperform
SHOP	Shopify	11.16%	$9.84M	$204.47B	40.20%	―
0700	Tencent Holdings	10.41%	$9.18M	HK$5.59T	50.11%	75 Outperform
PDD	PDD Holdings	7.10%	$6.26M	$165.53B	20.77%	70 Outperform
SPOT	Spotify	6.97%	$6.15M	$118.76B	17.34%	66 Neutral
PRX	Prosus	4.78%	$4.21M	€114.30B	47.12%	77 Outperform
3690	Meituan	4.69%	$4.14M	HK$589.76B	-38.57%	74 Outperform
ADYEN	Adyen	4.68%	$4.12M	€42.62B	10.34%	66 Neutral
9999	Netease Inc	4.18%	$3.68M	HK$688.98B	59.88%	80 Outperform
9618	JD.com, Inc. Class A	3.69%	$3.25M	HK$336.80B	-20.16%	74 Outperform

FDNI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

37.12

Negative

100DMA

36.25

Negative

200DMA

34.03

Positive

Market Momentum

MACD

-0.79

Positive

RSI

36.53

Neutral

STOCH

69.27

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDNI, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 35.48, equal to the 50-day MA of 37.12, and equal to the 200-day MA of 34.03, indicating a neutral trend. The MACD of -0.79 indicates Positive momentum. The RSI at 36.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDNI.

FDNI Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FDNI	―	―	$88.55M	0.65%	―
HAUZ	―	―	$932.24M	0.10%	―
RWX	―	―	$295.67M	0.59%	―
INQQ	―	―	$59.54M	0.86%	―
FMET	―	―	$48.38M	0.39%	―
IPAV	―	―	$4.63M	0.56%	―

Performance Comparison

FDNI

First Trust Dow Jones International Internet ETF

34.48

5.74

19.97%

HAUZ

Xtrackers International Real Estate ETF

―

RWX

SPDR Dow Jones International Real Estate ETF

―

INQQ

India Internet & Ecommerce ETF

―

FMET

Fidelity Metaverse ETF

―

IPAV

Global X Infrastructure Development ex-U.S. 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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