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FDNI - ETF AI Analysis

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FDNI

First Trust Dow Jones International Internet ETF (FDNI)

Rating:57Neutral
Price Target:
FDNI’s rating suggests it is a solid but not top-tier international internet ETF, with performance driven largely by strong, profitable tech leaders. Key holdings like Netease, Tencent, and Prosus support the fund through robust financial results, successful products, and reasonable valuations, while several Chinese internet names such as Alibaba, PDD, and Meituan add growth but face bearish price trends, competition, and regulatory pressures. The main risk is the fund’s heavy concentration in international internet and technology companies, particularly in China, which can increase volatility and exposure to sector- and region-specific challenges.
Positive Factors
Global Internet Focus
The fund gives investors targeted exposure to international internet and e-commerce companies, offering growth potential outside the U.S.
Geographic Diversification
Holdings spread across markets like Hong Kong, the U.S., Europe, and Asia help reduce reliance on any single country’s economy.
Sector Spread Within Tech-Related Areas
Exposure across consumer cyclical, communication services, and technology companies provides a mix of online retail, platforms, and digital services.
Negative Factors
High Concentration in Top Holdings
A small group of companies such as Shopify, Alibaba, and Tencent make up a large share of the portfolio, increasing the impact if any of them struggle.
Recent Weak Performance
The ETF’s year-to-date return has been negative, reflecting broad weakness among many of its major holdings.
Relatively High Expense Ratio
The fund’s ongoing fee is on the higher side for an ETF, which can eat into returns over time compared with lower-cost options.

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

FDNI Summary

FDNI is the First Trust Dow Jones International Internet ETF, which follows the Dow Jones International Internet Index. It focuses on internet-based companies outside the U.S., including online shopping, digital services, and streaming platforms. Well-known holdings include Alibaba and Tencent, along with other global e-commerce and tech names. Someone might invest in FDNI to seek growth from the worldwide shift toward online shopping and digital services, while also gaining international diversification. A key risk is that it is heavily concentrated in internet and tech-related stocks, so its price can swing sharply and may fall if this sector struggles.
How much will it cost me?The expense ratio for the First Trust Dow Jones International Internet ETF (FDNI) is 0.65%, which means you’ll pay $6.50 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on a specific niche of international internet companies, requiring more research and management effort.
What would affect this ETF?FDNI could benefit from the continued growth of e-commerce, cloud computing, and digital communication globally, especially as internet adoption increases in emerging markets. However, it may face challenges from regulatory changes in key regions like China, where several top holdings are based, and economic slowdowns that could impact consumer spending and technology investments. Interest rate hikes could also negatively affect high-growth tech companies within the ETF.

FDNI Top 10 Holdings

FDNI is essentially a bet on international internet heavyweights, with a big tilt toward Chinese and global e-commerce and platforms. Shopify and Sea have been rising lately, helping to offset weakness, while Netease looks relatively steady and quietly supports the fund. On the flip side, Alibaba, Tencent, and PDD have been lagging, acting like a weight on overall returns as sentiment around Chinese tech remains mixed. With most exposure outside the U.S. and concentrated in consumer internet and communication services, this ETF lives and dies by global online spending trends.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Alibaba Group Holding Ltd.10.38%$3.22MHK$2.24T7.74%
70
Outperform
Shopify9.99%$3.10M$151.83B-6.55%
Tencent Holdings 9.98%$3.09MHK$4.28T-11.52%
75
Outperform
Spotify5.33%$1.65M$102.93B-26.16%
66
Neutral
Meituan5.00%$1.55MHK$571.17B-25.11%
74
Outperform
PDD Holdings4.95%$1.53M$126.06B-19.54%
70
Outperform
Sea4.89%$1.52M$65.38B-29.09%
69
Neutral
JD.com, Inc. Class A4.88%$1.51MHK$348.49B5.12%
74
Outperform
Netease Inc4.50%$1.40MHK$663.32B1.07%
80
Outperform
Prosus4.40%$1.37M€79.60B-17.17%
77
Outperform

FDNI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
26.83
Positive
100DMA
27.37
Positive
200DMA
30.55
Negative
Market Momentum
MACD
0.39
Negative
RSI
65.85
Neutral
STOCH
94.13
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDNI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 27.22, equal to the 50-day MA of 26.83, and equal to the 200-day MA of 30.55, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 65.85 is Neutral, neither overbought nor oversold. The STOCH value of 94.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDNI.

FDNI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$30.41M0.65%
57
Neutral
$1.07B0.10%
54
Neutral
$271.27M0.59%
56
Neutral
$97.14M0.50%
71
Outperform
$44.82M0.39%
67
Neutral
$5.32M0.55%
56
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDNI
First Trust Dow Jones International Internet ETF
28.68
-4.70
-14.08%
HAUZ
Xtrackers International Real Estate ETF
RWX
SPDR Dow Jones International Real Estate ETF
FDCF
Fidelity Disruptive Communications ETF
FMET
Fidelity Metaverse ETF
IPAV
Global X Infrastructure Development ex-U.S. 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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