Decoding FDN: Understanding the First Trust Dow Jones Internet ETF, Trust Dow Jones Internet Index Fund, and Expense Ratio
FDN - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| FDN | ETF | Equity | Passive | Quarterly | Global | 0.52% | First Trust |
FDN Overview - The First Trust Dow Jones Internet Index Fund
First Trust Dow Jones Internet Index Fund (FDN) is a leading example of exchange-traded funds (ETFs), particularly within the technology sector. As an ETF, FDN provides investors with exposure to a diversified portfolio of equity holdings focused on the Internet industry.
Its performance, closely scrutinized by analysts, often mirrors the movements of fund flows, reflecting investor sentiment towards technology ETFs. FDN's price dynamics are influenced by its underlying portfolio holdings and the broader market trends. Morningstar ratings offer valuable insights into FDN's performance relative to its peers and the technology ETF landscape.
Investors are attracted to FDN's transparent, exchange-traded nature, which facilitates easy access and liquidity. With a focus on technology, FDN navigates the dynamic landscape of internet-based businesses, offering potential for growth and innovation.
Analyst evaluations of FDN's portfolio holdings serve as a guiding beacon for investors seeking exposure to this dynamic sector. For additional analyst insights, investors can also explore platforms like TipRanks. In essence, FDN encapsulates the essence of exchange-traded funds, offering a convenient and diversified avenue for investors to participate in the technology sector's potential.
FDN - Price / Yield
FDN - Portfolio and Asset Allocation
The First Trust Dow Jones Internet ETF (FDN) is an exchange-traded fund focusing on large-cap technology companies within the Internet industry. The top 10 holdings reveal a diversified mix of companies from different sectors, such as Amazon.com, Inc., Meta Platforms, Inc., Alphabet Inc., Netflix, Salesforce.com, Cisco, Arista Networks, PayPal Holdings, Inc., and Airbnb, Inc..
The sector breakdown further emphasizes the fund's concentration in technology, with a significant allocation of 40.59%. This is followed by communication services (33.86%), consumer cyclical (19.01%), financial (3.95%), and healthcare (2.59%). This distribution suggests that the fund aims to capture growth opportunities within the technology sector while diversifying across other sectors.
The presence of companies like Amazon.com, Inc., Alphabet Inc., and Netflix among the top holdings indicates a focus on established technology giants with strong market positions and growth potential. These companies are leaders in their respective segments and contribute to the fund's performance.
However, it's important to note that the fund also has exposure to sectors like consumer cyclical, financial, and healthcare, which adds diversification but may introduce volatility due to varying market conditions. Nonetheless, the fund's allocation strategy reflects a balanced approach to managing risk and pursuing growth opportunities within the technology and related sectors.
Top 10 Holdings
As of May 13, 2024, the top 10 holdings of the First Trust Dow Jones Internet Index Fund (FDN) are:
| Name | Weight |
|---|---|
| Amazon.Com, Inc. | 10.54% |
| Meta Platforms, Inc. | 7.86% |
| Alphabet Inc. Class A | 6.54% |
| Alphabet Inc. Class C | 5.53% |
| Netflix | 5.20% |
| Salesforce.com | 4.90% |
| Cisco | 4.49% |
| Arista Networks | 3.45% |
| PayPal Holdings, Inc. | 3.26% |
| Airbnb, Inc. | 2.79% |
Asset Allocation
The First Trust Dow Jones Internet Index Fund (FDN) has the following asset allocation as of May 13, 2024:
| Sector | Weight |
|---|---|
| Technology | 40.59% |
| Communication Services | 33.86% |
| Consumer Cyclical | 19.01% |
| Financial | 3.95% |
| Healthcare | 2.59% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
FDN Dividend Data |
The First Trust Dow Jones Internet Index Fund (FDN) does not regularly distribute dividends as its primary focus is on capital appreciation. |
FDN Average Yield |
As of May 10, 2024, the average annual yield for FDN is approximately 0.52%. This represents the income generated by the fund's underlying equity holdings. |
FDN Dividend History |
FDN does not have an established history of distributing dividends due to its focus on capital appreciation. |
FDN Yield Growth |
FDN's yield may vary based on the performance of the internet-related stocks in its portfolio. While the fund may experience yield growth over time, it does not guarantee dividend growth. Factors such as changes in market conditions and the fund's investment strategy can impact yield growth. |
FDN Yield Stability |
FDN aims to maintain a relatively stable return through capital appreciation, although its yield may fluctuate based on market conditions and the performance of its internet-based holdings. The stability of FDN's yield depends on factors such as the overall market environment, interest rates, and the performance of the technology sector. |
FDN - Chart
FDN - Comparative Analysis
Let's compare FDN with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of May 2024)
| FDN | VGT | PNQI | |
|---|---|---|---|
| Investment Focus | Focuses on internet-based companies | Focuses on technology sector | Focuses on NASDAQ-listed internet companies |
| Current Yield | 1.5% | 2.1% | 1.8% |
| Expense Ratio | 0.52% | 0.10% | 0.60% |
| Investment Strategy | Tracks the Dow Jones Internet Composite Index | Tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index | Tracks the performance of the NASDAQ Internet Index |
| Strengths | Diversified exposure to internet-based companies | Diverse portfolio of technology stocks | Focuses specifically on internet companies |
| Weaknesses | May be more volatile due to focus on a specific sector | May be affected by changes in technology trends | May have higher risk due to focus on internet companies |
Dividend History
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Oct 28, 2021 | $0.37 | Oct 29, 2021 | Nov 05, 2021 |
| Dec 21, 2011 | $0.01 | Dec 23, 2011 | Dec 30, 2011 |
| Jun 21, 2011 | $0.01 | Jun 23, 2011 | Jun 30, 2011 |
| Dec 21, 2010 | $0.04 | Dec 23, 2010 | Dec 31, 2010 |
News
Technical Analysis
Additional Information and Risks
The First Trust Dow Jones Internet Index Fund (FDN) is a pioneering ETF managed by First Trust Advisors L.P., designed to mirror the performance of the Dow Jones Internet Composite Index. As one of the largest and most actively traded ETFs, FDN provides investors exposure to the dynamic landscape of internet commerce and services.
Investors can track FDN's stock price and net asset value (NAV) through platforms like Yahoo Finance, accessing real-time information about the fund's outstanding shares and past performance metrics. FDN's investment strategy seeks to correspond generally to the price and yield performance of its underlying securities within the Dow Jones Internet Composite Index.
While FDN's performance may provide insights into future results, it's essential to note that past performance does not guarantee future returns. The fund's investments primarily consist of internet giants, reflecting its focus on tech giants and companies involved in internet-based businesses.
Managed by First Trust Advisors L.P., FDN is subject to fees and expenses, including a management fee. Investors should carefully review the prospectus and understand the fund's investment objectives and risks, including its non-diversified nature and particular risks associated with individual securities.
FDN incorporates environmental, social, and governance (ESG) factors into its investment decisions, leveraging ESG research from MSCI ESG materials. However, it's crucial to remember that past performance and ESG metrics do not guarantee future results, and investment decisions should be made cautiously. Always consult with a registered investment adviser or regulatory body before making any investment decisions.