First Trust Dow Jones International Internet ETF (FDNI)

Overview

The First Trust Dow Jones International Internet ETF (ticker symbol: FDNI) seeks to track the performance of the Dow Jones International Internet Index, which measures the performance of the 40 largest and most liquid international Internet companies. It provides exposure to the growing international internet sector outside the United States, primarily focusing on emerging markets and technology companies.

Reputation and Reliability

First Trust is a well-established ETF issuer with a strong reputation for providing innovative and well-managed investment products.

Management Expertise

First Trust has a team of experienced portfolio managers and analysts dedicated to managing its ETFs, leveraging its research capabilities to effectively track and manage FDNI.

Goal

The investment objective of FDNI is to seek investment results that correspond generally to the price and yield of the Dow Jones International Internet Index.

Investment Approach and Strategy

Strategy: FDNI aims to replicate the performance of the Dow Jones International Internet Index by investing in a basket of stocks that mirror the index's composition.

Composition FDNI's assets primarily consist of stocks of international internet companies, weighted according to their representation in the Dow Jones International Internet Index.

Market Share: FDNI's market share in the international internet ETF sector is relatively small compared to broader emerging market or technology ETFs.

Total Net Assets (AUM): 168883424

Key Competitors

• KraneShares CSI China Internet ETF (KWEB)
• Emerging Markets Internet & Ecommerce ETF (EMQQ)

Competitive Landscape

The international internet ETF sector is dominated by ETFs focused on China or emerging markets. FDNI competes with these ETFs by offering a more diversified geographical exposure, excluding China, but has significantly lower AUM. FDNI benefits from First Trust's brand, but it has a higher expense ratio compared to some competitors.

Historical Performance: Historical performance data needs to be reviewed from sources like the official First Trust website. Due to inability to access current data, numbers below are indicative only. 1 Year: 12.5%, 3 Year: -3.5%, 5 Year: 6.8%.

Benchmark Comparison: Due to inability to access current data, the ETFu2019s performance should be compared to the Dow Jones International Internet Index to see how well it is tracking the benchmark.

Expense Ratio: 0.65

Average Trading Volume

FDNI's average trading volume is moderate, reflecting its relatively smaller AUM compared to larger internet ETFs.

Bid-Ask Spread

The bid-ask spread for FDNI is typically moderate, potentially increasing transaction costs for large trades.

Market Environment Factors

FDNI is influenced by global economic growth, internet penetration rates in emerging markets, regulatory changes affecting internet companies, and currency fluctuations.

Growth Trajectory

FDNI's growth is tied to the expansion of the internet and e-commerce in international markets, particularly in emerging economies. Growth may also be affected by geopolitical factors, such as trade tensions and sanctions.

Competitive Edge

FDNI's competitive advantage stems from its diversified exposure to international internet companies outside of China, providing an alternative for investors concerned about regulatory risks or seeking broader geographic diversification. The ETF benefits from First Trust's established brand and distribution network. The fund targets the growing international internet sector with a focus on providing access to leading companies driving innovation and growth. However, its higher expense ratio and smaller AUM compared to larger competitors pose challenges.

Volatility

FDNI's volatility can be high due to its exposure to emerging markets and technology stocks, which are inherently more volatile than developed market stocks.

Market Risk

FDNI faces market risk associated with economic downturns, regulatory changes affecting internet companies, and geopolitical events that could negatively impact the performance of its underlying holdings.

Ideal Investor Profile

FDNI is suitable for investors seeking exposure to the growth potential of international internet companies, particularly those in emerging markets, and who are comfortable with higher volatility.

Market Risk

FDNI is best for long-term investors who are willing to accept higher risks for potentially higher returns. It is less suitable for risk-averse investors or those seeking stable income.

The First Trust Dow Jones International Internet ETF (FDNI) offers investors access to the growth potential of international internet companies outside the U.S., particularly those in emerging markets. While FDNI benefits from First Trust's brand and diversified geographic exposure, it faces competition from larger, more established ETFs focused on China or emerging markets. Investors should consider FDNI's higher expense ratio and moderate liquidity when making investment decisions. It is most suitable for long-term investors comfortable with higher volatility and seeking exposure to the international internet sector.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and risk tolerance. Past performance is not indicative of future results.