Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
First Trust Dow Jones Internet Index FDN offers investors exposure to a basket of some of the biggest and most influential publicly traded Internet companies. Holding 41 companies, FDN is a fairly concentrated exchange-traded   Read more 

Bull Case

FDN is the most liquid pure-play Internet-themed ETF that trades.
Internet companies have done an outstanding job driving and benefiting from continued usage of the Internet by Americans.
The names of some of this fund's largest holdings, such as Google, Facebook, and Amazon.com, are synonymous with the services they offer. This has resulted in amazing brand awareness and terrific brand loyalty. Read more 

Bear Case

Many of the largest names in this ETF are at a crossroads, whereby they are trying to figure out how to continue their historically outsized growth. The growth and diversification options for some of these players clearly are not as attractive as the growth they have ridden thus far.
This ETF is a bit top-heavy, with the top 10 holdings comprising more than 56% of the fund's assets.
Because of index rules, this fund is not permitted to own some other high-quality companies with significant ties to the Internet, like Apple and Microsoft. Instead, holdings must derive at least 50% of their revenue directly from Internet commerce or services. Read more 

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Broad Fixed-Income Exposure At a Low Cost 
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