FDN - ETF AI Analysis

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First Trust Dow Jones Internet Index Fund (FDN)

Rating:72Outperform

Price Target:―

FDN’s rating suggests it is a solid but not low-risk internet-focused ETF, supported by major holdings like Alphabet and Arista Networks, which benefit from strong financial performance, positive earnings sentiment, and strategic investments in AI and cloud growth. However, weaker spots such as Snowflake and Oracle, which face profitability, leverage, and bearish technical trends, along with generally high valuations across several key holdings, add risk and can hold back the fund’s overall rating, especially given its concentration in the internet and tech-related sectors.

Positive Factors

Large, Established Internet Leaders

The fund’s biggest positions include well-known, financially strong internet and technology companies, which can provide a solid core for long-term growth.

Exposure to Several Strong-Performing Tech Stocks

Holdings like Cisco, Arista Networks, Snowflake, Alphabet, and Amazon have shown strong or steady performance this year, helping support the ETF despite some weaker names.

Focused but Still Sector-Diverse Internet Portfolio

While the fund targets internet-related businesses, it spreads investments across technology, communication services, and consumer cyclical sectors, which can help reduce the impact of weakness in any single industry.

Negative Factors

High Concentration in a Few Large Holdings

A small group of companies, including Meta, Amazon, Cisco, and Alphabet, make up a large share of the portfolio, increasing the fund’s sensitivity to news and price swings in those stocks.

Several Key Holdings Have Weak Recent Performance

Important positions such as Meta, Booking Holdings, Salesforce, and Oracle have been lagging this year, which has weighed on the ETF’s overall results.

Heavy U.S. Focus and Above-Average Fees

Almost all assets are invested in U.S. companies and the expense ratio is on the higher side for an ETF, which limits geographic diversification and slightly reduces net returns for investors.

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

AUM5.33B

RegionNorth America

Expense Ratio0.49%

Beta1.28

IssuerFirst Trust

Inception DateJun 19, 2006

Dividend YieldN/A

Asset ClassEquity

Index TrackedDJ Internet Composite

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume129,916

30 Day Avg. Volume274,355

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

360.83

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering41

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FDN Summary

FDN is an ETF that follows the Dow Jones Internet Composite Index, focusing on companies that make most of their money from internet-based businesses. It holds well-known names like Amazon and Meta Platforms, along with other firms involved in e-commerce, online services, social media, and cloud computing. Someone might invest in FDN to seek growth from the continued expansion of the internet and to get diversified exposure to many leading online companies in a single fund. A key risk is that it is heavily tilted toward technology and internet stocks, so its price can rise and fall sharply with that sector.

How much will it cost me?FDN has an expense ratio of 0.49%, which means you’ll pay $4.90 per year for every $1,000 invested. This is slightly higher than average because it is a sector-focused ETF that requires active management to track the Dow Jones Internet Composite Index and maintain exposure to leading internet companies.

What would affect this ETF?FDN could benefit from continued growth in internet usage, e-commerce, and digital transformation, especially as its top holdings like Amazon, Meta, and Alphabet are leaders in these areas. However, rising interest rates or regulatory scrutiny on big tech companies could negatively impact the fund's performance, as these factors may increase costs or limit growth opportunities. Additionally, economic slowdowns could reduce consumer spending in sectors like e-commerce and online services, affecting the ETF's key holdings.

FDN Top 10 Holdings

FDN is essentially an internet and cloud powerhouse, with U.S. tech and consumer names steering the ship. Arista Networks, Snowflake, and Cisco are the main engines right now, rising on AI and cloud momentum and giving the fund a solid growth tilt. Amazon and Alphabet are more mixed but still helpful, with recent choppiness offset by steady longer-term gains. On the flip side, Meta, Salesforce, Oracle, and Netflix are losing steam, acting as a drag and highlighting how concentrated FDN is in a handful of big, volatile internet leaders.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
META	Meta Platforms	10.36%	$547.81M	$1.65T	-14.24%	76 Outperform
AMZN	Amazon	9.85%	$520.77M	$2.77T	12.55%	71 Outperform
CSCO	Cisco Systems	7.47%	$395.10M	$442.08B	68.54%	77 Outperform
CRM	Salesforce	5.95%	$314.81M	$203.87B	2.04%	80 Outperform
ANET	Arista Networks	5.40%	$285.66M	$251.73B	43.19%	83 Outperform
GOOGL	Alphabet Class A	4.82%	$254.83M	$4.12T	40.57%	85 Outperform
BKNG	Booking Holdings	4.45%	$235.16M	$130.68B	-20.34%	63 Neutral
ORCL	Oracle	4.31%	$228.06M	$432.88B	-48.56%	66 Neutral
SNOW	Snowflake	4.27%	$226.08M	$116.07B	48.76%	54 Neutral
NFLX	Netflix	3.88%	$205.02M	$322.29B	-34.87%	73 Outperform

FDN Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

282.03

Positive

100DMA

275.17

Positive

200DMA

264.90

Positive

Market Momentum

MACD

1.83

Positive

RSI

52.00

Neutral

STOCH

52.87

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDN, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 289.00, equal to the 50-day MA of 282.03, and equal to the 200-day MA of 264.90, indicating a neutral trend. The MACD of 1.83 indicates Positive momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 52.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDN.

FDN Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FDN	―	―	$5.33B	0.49%	72 Outperform
THRO	―	―	$6.77B	0.57%	74 Outperform
JTEK	―	―	$4.39B	0.65%	69 Neutral
IFRA	―	―	$4.15B	0.30%	68 Neutral
USCA	―	―	$3.47B	0.07%	74 Outperform
USCL	―	―	$2.82B	0.08%	75 Outperform

Performance Comparison

FDN

First Trust Dow Jones Internet Index Fund

288.66

4.30

1.51%

THRO

Ishares U.S. Thematic Rotation Active Etf

―

JTEK

JPMorgan U.S. Tech Leaders ETF

―

IFRA

iShares U.S. Infrastructure ETF

―

USCA

Xtrackers MSCI USA Climate Action Equity ETF

―

USCL

iShares Climate Conscious & Transition MSCI USA 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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