Online Giants in a Single Fund
Investors who are bullish on Internet companies--including Amazon, Google, and Facebook--but want to avoid single-stock risk can consider First Trust Dow Jones Internet Index.
Investors who are bullish on Internet companies--including Amazon, Google, and Facebook--but want to avoid single-stock risk can consider First Trust Dow Jones Internet Index.
Bob Goldsborough: For exposure to U.S. Internet companies, one exchange-traded fund that investors can consider is First Trust Dow Jones Internet Index (FDN).
It's far and away the largest Internet ETF. It holds firms that generate at least half of their annual revenue from the Internet. The kinds of companies found in this fund are Internet-commerce firms, such as Amazon (AMZN) and eBay (EBAY), and Internet-services companies, such as Google (GOOGL) and Facebook (FB).
This ETF brings together all such firms into a single fund. One thing that these firms all have in common is that competition is very intense. However, the return drivers for Internet companies can vary. The success of some firms here is driven by advertising growth, while others will succeed through increased user adoption or margin improvement. Broadly, though, most of these firms are benefiting from increased online ad spending, increased time spent online, and aggregation of consumer data.
Internet companies can be volatile. So, for investors who are bullish on Internet companies but want to avoid single-stock risk, FDN is a reasonably priced choice.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.