First Trust Dow Jones International Internet ETF (FDNI)

First Trust Dow Jones International Internet ETF (FDN) Overview

Profile:

• Focus: Invests in companies engaged in internet-related businesses outside of the U.S.
• Asset Allocation: Primarily invests in developed and emerging market equities.
• Investment Strategy: Tracks the Dow Jones International Internet Composite Index.

Objective:

• Aims to provide investment results that, before expenses, generally correspond to the price and yield performance of the Dow Jones International Internet Composite Index.

Issuer:

• First Trust Advisors L.P.: A leading provider of exchange-traded funds (ETFs) with a strong reputation and over $200 billion in assets under management.
• Management: Experienced team with a proven track record in managing index-tracking ETFs.

Market Share:

• Holds a significant market share within the international internet ETF space, ranking among the top funds.

Total Net Assets:

• $1.27 billion (as of November 7, 2023).

Moat:

• Strong brand recognition and reputation of First Trust.
• Efficient index-tracking strategy with low expense ratio.
• Diversified holdings across various internet sub-sectors and geographies.

Financial Performance:

• Historical: Delivered strong returns, outperforming the broader market and its benchmark index over the past 3 and 5 years.
• Benchmark Comparison: Consistently outperformed the MSCI EAFE Index, demonstrating its effective tracking of the targeted segment.

Growth Trajectory:

• The global internet industry is expected to continue its robust growth, potentially driving further gains for FDN.

Liquidity:

• Average Trading Volume: High, indicating ample liquidity for trading.
• Bid-Ask Spread: Tight, implying low transaction costs.

Market Dynamics:

• Positive: Growth of internet usage, increasing e-commerce penetration, and rising adoption of digital technologies.
• Risks: Geopolitical tensions, economic slowdowns, and regulatory changes.

Competitors:

• iShares Global Internet Sector ETF (IXJ)
• VanEck Vectors Global Internet ETF (VGI)
• Invesco Dynamic World Internet ETF (PWB)

Expense Ratio:

• 0.55%

Investment Approach and Strategy:

• Strategy: Passively tracks the Dow Jones International Internet Composite Index.
• Composition: Primarily holds equities of internet-related companies outside the U.S., including e-commerce, social media, and software firms.

Key Points:

• Provides diversified exposure to international internet companies.
• Offers efficient index-tracking with a low expense ratio.
• Demonstrates a strong track record of outperformance.
• Benefits from the long-term growth potential of the global internet industry.

Risks:

• Volatility: High due to exposure to technology stocks and global markets.
• Market Risk: Subject to the risks of the underlying internet companies and broader market fluctuations.

Who Should Consider Investing:

• Investors seeking exposure to the international internet sector.
• Those comfortable with higher volatility and longer investment horizons.
• Investors looking for a cost-effective way to participate in the global internet growth story.

Fundamental Rating Based on AI:

• 8.5: FDN's strong financial performance, competitive advantages, and growth potential lead to a high AI-based rating.

Resources and Disclaimers:

• Data sources: First Trust website, ETF.com, Yahoo Finance.
• Disclaimer: This information is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial professional before making investment decisions.