What Is the FDN ETF? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
The First Trust Dow Jones Internet Index Fund (FDN) tracks the Dow Jones Internet Composite Index. It is a thematic ETF for investors interested in the outlook for internet-related stocks such as e-commerce, streaming and cloud, and it is known for broad diversification across the industry.
SubscribeWhat Is the First Trust Dow Jones Internet Index Fund ETF?
The fund tracks the Dow Jones Internet Composite Index and holds US companies that generate a significant portion of their revenue from internet-based businesses. Its portfolio spans two core areas: e-commerce and internet services.
It suits thematic investors who want exposure to the long-term growth of the internet and platform industry.
It is a passively managed ETF (index-tracking) operated by First Trust.
How Does the First Trust Dow Jones Internet Index Fund Invest?
| Item | Details |
|---|---|
| Underlying Index | Dow Jones Internet Composite Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Annual |
| Expense Ratio | 0.49% |
The fund holds US companies with a high share of internet revenue, weighted by adjusted market capitalization, and tracks the performance of the broader internet industry across two sub-indexes: e-commerce and internet services. A cap on individual stock weights partially eases concentration in a few mega-cap names.
- Exposure to the entire industry through a combination of the e-commerce and internet services sub-indexes
- A per-stock weight cap that partially eases concentration in mega-cap stocks
First Trust Dow Jones Internet Index Fund Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $4.8B, and the expense ratio is 0.49% per year.
Compared with similar thematic ETFs, its distinguishing feature is a portfolio covering the internet industry as a whole, which gives it a different degree of diversification than products focused on a single sub-sector.
First Trust Dow Jones Internet Index Fund Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund moves with the earnings trends of internet platform companies. Short-term swings tend to widen with the interest rate environment and big tech earnings seasons, and it is also affected by whether investors favor a growth-stock style.
Fund flows shift with changes in investor sentiment toward the internet and platform theme. Interest tends to rise when growth stocks are in favor, while money tends to flow out during risk-averse periods.
First Trust Dow Jones Internet Index Fund Pros and Cons
Its strength is broad exposure to the internet industry as a whole, while the high volatility typical of growth stocks and the concentration in large-cap names are points to keep in mind.
💪 Key Strengths
⚠️ Points to Watch
First Trust Dow Jones Internet Index Fund Alternative ETFs and Related Products
FIDU and FNCL in the table are ETFs covering the industrials and financials sectors, respectively. Because the industries they track differ entirely from FDN, they are less direct comparisons and more useful as references for sector diversification. Other choices within the internet and technology theme include XLK, which covers the broad technology sector, SKYY, which focuses on cloud computing, and IBUY, which specializes in the e-commerce theme. Investors can review them together depending on their preferred weighting across sub-themes.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNCL | Fidelity MSCI Financials Index ETF | $82.18 | +0.3% | $2.3B | 0.08% | 1.57% | +9.5% |
 FIDU | Fidelity MSCI Industrials Index ETF | $89.61 | -0.1% | $2.3B | 0.08% | 0.92% | +8.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AMZN | Amazon.com Inc | 0.20% | $270.87 | +1.5% | $2.93T | 21.9 | - |
| META | Meta Platforms Inc | 0.19% | $641.39 | +0.0% | $1.64T | 21.9 | 0.29% |
| NFLX | Netflix Inc | 0.09% | $63.26 | -1.1% | $259.8B | 18.3 | - |
| CSCO | Cisco Systems Inc | 0.15% | $98.15 | -0.5% | $386.4B | 29.5 | 1.74% |
| GOOG | Alphabet Inc | 0.06% | $284.92 | -0.4% | $3.50T | 14.9 | 0.31% |
| GOOGL | Alphabet Inc | 0.05% | $287.38 | -0.3% | $3.50T | 15.0 | 0.3% |
| ANET | Arista Networks Inc | 0.05% | $185.02 | -0.6% | $233.8B | 49.7 | - |
First Trust Dow Jones Internet Index Fund Investor Checkpoints
Here are the points to review before investing in FDN. Given the nature of thematic ETFs, it is worth checking volatility, industry concentration and cost levels before making an investment decision.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check cumulative costs over a long holding period | Somewhat higher than the thematic ETF average |
| 📊 Large-Cap Weighting | Check how concentrated the top holdings are | Some large caps carry heavy weights |
| 📉 Volatility | Check the range of price swings typical of growth stocks | High volatility persists |
| 🌐 Industry Regulation | Follow news on big tech regulatory issues | Regulatory issues require constant monitoring |
Because the portfolio is centered on growth stocks, losses can deepen during periods of rising interest rates or weak earnings. Big tech regulatory issues and large-cap concentration should also be considered as potential risks.
It is a suitable choice for thematic investors who want to diversify across the internet industry, and it is best approached with a long-term perspective that can tolerate volatility.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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