First Trust Dow Jones International Internet ETF (FDNI)

Overview

The First Trust Dow Jones International Internet ETF (WIFI) seeks investment results that correspond generally to the price and yield, before fees and expenses, of the Dow Jones International Internet Index. The fund primarily invests in non-U.S. companies that derive a significant portion of their revenue from the internet sector. It offers exposure to international internet companies outside the United States.

Reputation and Reliability

First Trust is a well-established ETF provider with a strong reputation for innovation and delivering specialized investment products.

Management Expertise

First Trust has a dedicated team of portfolio managers and analysts with expertise in thematic investing and ETF management.

Goal

To provide investment results that correspond generally to the price and yield, before fees and expenses, of the Dow Jones International Internet Index.

Investment Approach and Strategy

Strategy: WIFI aims to track the Dow Jones International Internet Index, employing a passive investment strategy with a focus on international internet companies.

Composition The ETF holds stocks of companies primarily based outside the U.S. that operate in the internet sector. It is a sector-specific fund focused on internet-related businesses.

Market Share: WIFI's market share is moderate among international internet ETFs.

Total Net Assets (AUM): 78540000

Key Competitors

• EMQQ The Emerging Markets Internet & Ecommerce ETF (EMQQ)
• KraneShares CSI China Internet ETF (KWEB)
• Global X E-Commerce ETF (EBIZ)

Competitive Landscape

The international internet ETF market is competitive, with several players offering exposure to different segments and regions. WIFI offers a broad approach to international internet companies, while others may focus on specific regions like China or emerging markets. WIFI's advantage is its diversified approach across developed international markets, but it may lag behind competitors focused on high-growth emerging markets during periods of strong emerging market performance. Its disadvantage is potentially lower growth compared to ETFs focused on rapidly expanding emerging markets.

Historical Performance: Historical performance varies with market conditions and the performance of international internet companies. [1.3, 2.5, 7.8, 12.6, 3.4]

Benchmark Comparison: The ETF's performance is benchmarked against the Dow Jones International Internet Index. The ETF performance can be compared to that of the index for tracking effectiveness.

Expense Ratio: 0.0065

Average Trading Volume

The average trading volume of WIFI is moderate, which indicates reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for WIFI is generally tight, indicating relatively low trading costs.

Market Environment Factors

WIFI is affected by factors such as global economic growth, international trade policies, technological innovation, and consumer spending trends in international markets.

Growth Trajectory

WIFI's growth depends on the adoption and growth of internet-based services in international markets. Changes to strategy and holdings are based on the underlying index methodology.

Competitive Edge

WIFI provides exposure to a diverse set of international internet companies beyond the U.S. market. Its investment in the Internet sector, in countries excluding USA, offers investors geographical diversification and access to growing international markets. This targeted approach differentiates it from broader international equity ETFs. The ETF's well-defined index-tracking strategy and the issuer's experience contribute to its reliability.

Volatility

WIFI's volatility is comparable to other international equity ETFs, depending on the market conditions and sector exposure.

Market Risk

The ETF is subject to market risk, currency risk, and regulatory risks associated with investing in international markets. The technology sector exposure also introduces sector-specific risks such as rapid technological change and competition.

Ideal Investor Profile

WIFI is suitable for investors seeking exposure to the growth potential of international internet companies and willing to accept the associated risks of investing in international markets.

Market Risk

WIFI is best for long-term investors with a growth-oriented investment objective and a tolerance for moderate risk.

The First Trust Dow Jones International Internet ETF (WIFI) provides targeted exposure to international internet companies outside of the U.S. It tracks the Dow Jones International Internet Index and offers a convenient way to diversify into international tech sector. Investors should consider the associated risks of investing in international markets and the tech sector. With a moderate expense ratio, WIFI could be a solid choice for investors seeking international internet equity.

Data Sources:

• First Trust website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.