First Trust Dow Jones Internet Index Fund (FDN)

ETF First Trust Dow Jones Internet Index Fund (FDN) Summary

Profile:

• Focus: Large- and mid-cap US internet companies
• Asset Allocation: 100% equity
• Investment Strategy: Passively tracks the Dow Jones Internet Composite Index

Objective:

• Seeks to track the performance of the Dow Jones Internet Composite Index, which includes leading U.S. internet companies.

Issuer:

• Name: First Trust Portfolios LP
• Reputation & Reliability: First Trust is a reputable asset manager with over $172 billion in assets under management.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in the technology sector.

Market Share:

• FDN holds a market share of approximately 1.5% in the internet ETF category.

Total Net Assets:

• As of October 26, 2023, FDN has $2.4 billion in total net assets.

Moat:

• Passive Management: FDN's low expense ratio and passive management approach offer cost efficiency.
• Liquidity: The ETF boasts a high average daily trading volume, ensuring easy buying and selling.
• Brand Recognition: First Trust enjoys a strong reputation within the ETF industry.

Financial Performance:

• FDN has historically outperformed the broader market, with a 5-year annualized return of 13.8% compared to the S&P 500's 10.2%.
• However, it is crucial to remember that past performance does not guarantee future results.

Growth Trajectory:

• The internet sector is expected to continue growing, driven by increasing internet penetration and technological advancements.
• This bodes well for FDN's long-term prospects.

Liquidity:

• Average Daily Trading Volume: 1.2 million shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Economic Indicators: Rising interest rates and inflation could impact the internet sector's growth.
• Sector Growth Prospects: The internet industry is expected to maintain strong growth driven by e-commerce, cloud computing, and digital advertising.
• Current Market Conditions: Market volatility could affect the ETF's price in the short term.

Competitors:

• Vanguard Information Technology ETF (VGT): Market Share 12.9%
• iShares Expanded Tech Sector ETF (IGV): Market Share 10.4%

Expense Ratio:

• 0.58%

Investment Approach & Strategy:

• Strategy: Tracks the Dow Jones Internet Composite Index
• Composition: Primarily holds stocks of large- and mid-cap U.S. internet companies

Key Points:

• Provides exposure to a diversified portfolio of leading internet companies.
• Offers low expense ratio and passive management.
• Benefits from the long-term growth potential of the internet sector.

Risks:

• Volatility: The internet sector is known for its high volatility.
• Market Risk: The ETF is subject to risks associated with the internet industry, such as competition and technological disruption.
• Concentration Risk: The ETF holds a concentrated portfolio of internet stocks, making it susceptible to company-specific risks.

Who Should Consider Investing:

• Investors seeking exposure to the internet sector
• Investors with a long-term investment horizon
• Investors comfortable with a high degree of volatility

Fundamental Rating Based on AI:

• 7.5/10: FDN exhibits strong fundamentals, including its reputable issuer, competitive expense ratio, and exposure to a high-growth sector. However, investors should be aware of the inherent risks associated with the internet industry.

Resources & Disclaimers:

• This information is based on data available as of October 26, 2023, and may change over time.
• It should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
• Data sources: First Trust website, ETF.com, Yahoo Finance

Disclaimer:

This analysis is provided for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before investing in any ETF.