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FDNI - ETF AI Analysis

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FDNI

First Trust Dow Jones International Internet ETF (FDNI)

Rating:58Neutral
Price Target:
FDNI’s rating suggests it is a solid but not outstanding international internet ETF, with its quality driven largely by strong, profitable tech leaders like Tencent and Netease, which benefit from robust growth, successful products, and reasonable valuations. However, several major holdings such as Alibaba, Spotify, and Baidu face bearish technical trends, investment or operational challenges, and potential overvaluation, which weigh on the fund’s overall appeal. The main risk factor is its heavy concentration in a single sector—global internet and technology companies—making it sensitive to shifts in tech sentiment, regulation, and market cycles.
Positive Factors
Targeted International Internet Focus
The fund gives investors focused access to international internet and online platform companies that many broad market ETFs do not cover as directly.
Meaningful Diversification Across Countries
Holdings are spread across several regions, including Asia, North America, and Europe, which helps reduce reliance on any single country’s market.
Exposure to Well-Known Global Platforms
Top positions include large, widely recognized internet and e-commerce companies, giving investors access to established players in the online economy.
Negative Factors
Weak Recent Performance
The ETF has shown negative performance so far this year and over the last three months, signaling recent struggles for its holdings.
Concentration in a Few Stocks and Sectors
A small group of internet and consumer-related companies makes up a large share of the portfolio, increasing the impact if these names or sectors continue to lag.
Relatively High Expense Ratio
The fund charges a higher fee than many broad index ETFs, which can eat into returns over time, especially when performance is weak.

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

FDNI Summary

FDNI is an exchange-traded fund that follows the Dow Jones International Internet Index, focusing on internet-based companies outside the United States. It holds well-known names like Alibaba and Shopify, along with other firms involved in e-commerce, online services, and digital platforms. Someone might invest in FDNI to seek growth from the global shift toward online shopping, cloud tools, and digital entertainment, while getting diversification across several countries and sectors. A key risk is that it is heavily tilted toward internet and tech-related stocks, so its price can swing a lot and may fall sharply if this sector struggles.
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

FDNI is heavily tilted toward international internet and e-commerce names, with a big cluster in Chinese platforms and a few key Western players. Shopify has been one of the brighter spots lately, helping to prop up returns, while JD.com looks steadier and quietly supportive. On the flip side, Tencent and Prosus have been losing steam, and Spotify’s recent slide hasn’t helped. Adyen’s sharp swings add volatility rather than stability. Overall, the fund is concentrated in consumer internet and communication services outside the U.S., making it a focused but bumpy ride.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Alibaba Group Holding Ltd.10.61%$4.23MHK$2.32T8.48%
70
Outperform
Tencent Holdings 8.79%$3.50MHK$3.86T-13.15%
75
Outperform
Shopify8.19%$3.27M$154.09B16.50%
Spotify7.12%$2.84M$102.44B-24.44%
66
Neutral
Prosus6.33%$2.52M€77.72B-12.01%
77
Outperform
Meituan5.19%$2.07MHK$453.55B-41.38%
74
Outperform
JD.com, Inc. Class A4.79%$1.91MHK$311.20B-12.60%
74
Outperform
Netease Inc4.49%$1.79MHK$605.96B1.30%
80
Outperform
PDD Holdings4.44%$1.77M$120.19B-9.54%
70
Outperform
Baidu, Inc. Class A4.39%$1.75MHK$359.34B58.60%
63
Neutral

FDNI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
27.78
Positive
100DMA
29.58
Negative
200DMA
32.75
Negative
Market Momentum
MACD
-0.15
Negative
RSI
52.54
Neutral
STOCH
79.84
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDNI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 27.68, equal to the 50-day MA of 27.78, and equal to the 200-day MA of 32.75, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 79.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDNI.

FDNI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$40.81M0.65%
58
Neutral
$1.04B0.10%
54
Neutral
$268.12M0.59%
56
Neutral
$47.14M0.39%
67
Neutral
$8.29M0.47%
56
Neutral
$5.76M0.55%
59
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDNI
First Trust Dow Jones International Internet ETF
27.99
-3.89
-12.20%
HAUZ
Xtrackers International Real Estate ETF
RWX
SPDR Dow Jones International Real Estate ETF
FMET
Fidelity Metaverse ETF
IVRS
iShares Future Metaverse Tech and Communications 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.
DisclaimerThis 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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