fdn stock: First Trust Dow Jones Internet ETF

First Trust Dow Jones Internet Index Fund (FDN)

fdn stock is the ticker and market shorthand for the First Trust Dow Jones Internet Index Fund, an exchange‑traded fund that seeks concentrated exposure to large‑cap U.S. internet companies. This article explains what the fund is, how it tracks the Dow Jones Internet Composite Index, its typical holdings and sector profile, historical behavior, fees and governance, trading and liquidity details, risks, and practical steps for investors interested in thematic internet exposure.

As of January 28, 2026, according to Benzinga, FDN is widely used by investors seeking internet sector exposure and held notable weights in digital payments names such as PayPal (reported weight ~3.29%) — demonstrating how single‑stock moves in internet companies can affect the fund. Readers should consult the fund’s official materials for the most current data before making decisions.

Fund overview

The First Trust Dow Jones Internet Index Fund (FDN) is an NYSE Arca‑listed ETF launched by First Trust on June 19, 2006. The fund’s stated objective is to track the performance of the Dow Jones Internet Composite Index.

• Ticker: FDN (commonly referenced in market commentary as fdn stock)
• Exchange: NYSE Arca
• Inception date: June 19, 2006
• Typical number of holdings: approximately 40–42 constituents (varies with index reconstitution)
• Strategy: passively seeks to replicate the Dow Jones Internet Composite Index

FDN offers concentrated exposure to firms with primary internet‑related business models and is positioned as a thematic ETF for investors seeking an internet‑focused sleeve within broader equity allocations.

Investment objective and strategy

FDN’s investment objective is to replicate, before fees and expenses, the performance of the Dow Jones Internet Composite Index. The fund employs a passive indexing approach rather than active stock selection.

Key points on strategy and implementation:

• Index replication: FDN aims to hold the constituent securities of the tracked index in proportions intended to mirror index weights. The ETF typically uses full replication when practicable, holding the majority of index constituents.
• Weighting methodology: The underlying index is market‑cap weighted but includes caps and concentration limits to avoid excessive single‑name dominance; the fund therefore exhibits a market‑cap bias with constraints to keep exposure diversified across qualified internet companies.
• Rebalancing and turnover: FDN follows the index reconstitution and rebalancing schedule, which can create periodic turnover when index membership changes or corporate actions occur.

The fund’s passive structure means it targets index performance net of its expense ratio and tracking error; performance will differ from the index due to fees, trading costs, and sampling or optimization when full replication is impractical.

Index tracked — Dow Jones Internet Composite Index

The Dow Jones Internet Composite Index defines eligibility and weighting for internet‑centric companies included in the index that FDN seeks to track.

Highlights of the index methodology and eligibility criteria:

• Business focus: Eligible firms are those that derive a majority of revenues from Internet‑related activities (e.g., online commerce, search/advertising, social networking platforms, internet software and services, online media, and related infrastructure providers).
• Listing and liquidity: Eligible companies are generally U.S.‑listed or ADRs of large U.S.‑listed internet firms and must meet minimum liquidity and market capitalization thresholds specified by the index provider.
• Selection and ranking: Constituents are selected and ranked based on market capitalization and the degree to which revenues are internet‑driven; non‑qualifying ancillary businesses can affect eligibility.
• Weighting and caps: The index uses market‑cap weighting with rules that may cap very large constituents to limit concentration and keep the index diversified across major internet segments.

Because definitions of “internet company” evolve with corporate strategy and technology, index membership can change over time as firms pivot, acquire businesses, or shift revenue mixes.

Holdings and portfolio composition

Top holdings

FDN historically concentrates in large, widely recognized U.S. internet companies. Typical top holdings (subject to periodic change) include firms such as Amazon, Meta Platforms, Alphabet, Netflix, Cisco Systems, Salesforce, and other large internet or internet‑adjacent companies. The exact top holdings and weights rotate with market moves and index updates.

• Example: PayPal has been a material holding in many internet‑focused funds and, as reported by market coverage, can carry a multi‑percent weight in FDN. As of January 28, 2026, Benzinga reported PayPal’s weight in FDN at about 3.29% — illustrating how a single company move can influence the fund.

Weights for individual names often range from low single digits to higher portions for the largest internet platforms; investors should review the fund’s current holdings for precise weights.

Sector/industry and market‑cap profile

• Sector concentration: FDN is heavily concentrated in internet sectors, including communication services (social platforms, search/advertising), consumer discretionary (e‑commerce and digital marketplaces), and internet software/services.
• Growth tilt: The fund has a pronounced growth orientation, given its focus on companies whose revenue and earnings profiles are tied to digital adoption, advertising, subscription services, and online transactions.
• Market‑cap bias: FDN is large‑cap oriented, with many of the largest U.S. internet companies representing the bulk of the fund’s market value exposure.

Number of holdings and geographic exposure

FDN generally holds roughly 40–42 securities, providing a concentrated but diversified exposure across the internet sector. The fund’s geographic exposure is primarily to U.S.‑listed companies; non‑U.S. companies may appear only if they trade as U.S. ADRs and meet index criteria.

Because the fund is concentrated by design, geographic and sector diversification are narrower than broad‑market ETFs.

Performance

FDN’s historical performance reflects broad internet sector cycles, exhibiting periods of strong outperformance during internet growth waves and heightened volatility during sector sell‑offs.

• Multi‑period returns: Performance varies by calendar period. Over long windows, FDN has historically captured the secular growth of U.S. internet leaders but also experienced significant drawdowns during major tech contractions.
• Volatility and correlation: FDN tends to be more volatile than broad U.S. market ETFs due to concentrated sector exposure. It often shows high correlation with major tech benchmarks and thematic internet indices but can diverge when specific internet sub‑sectors outperform or underperform.

Important reminder: past performance is not indicative of future results. For up‑to‑date performance metrics (YTD, 1‑yr, 3‑yr, 5‑yr, since inception), consult the fund’s fact sheet and regulatory filings.

Fund size, liquidity and trading information

• Assets under management (AUM): FDN has consistently attracted significant AUM given its long track record as an internet‑thematic ETF. AUM fluctuates with share flows and market performance; historically the fund has been in the multi‑billion USD range.
• Average daily volume and liquidity: FDN typically posts solid average daily trading volume for an ETF with multi‑billion AUM, producing reasonable intraday liquidity and generally tight bid‑ask spreads in normal market conditions.
• NAV vs market price: As with most ETFs, FDN’s market price may trade at a small premium or discount to NAV intraday; authorized participant activity and market liquidity tend to keep deviations modest.

Trading details:

• Ticker: FDN
• Exchange: NYSE Arca
• Trading hours: Regular U.S. equity hours (pre‑market and after‑hours trading availability depends on the brokerage platform used)

Investors should monitor liquidity and spreads at the time of trading, particularly around major market events or index reconstitution dates when turnover rises.

Fees, distributions and tax profile

• Expense ratio: Historically reported around 0.49%–0.51%; investors should verify the current expense ratio in the fund prospectus or fact sheet for the latest figure.
• Dividends and distributions: FDN distributes dividends and capital gains according to the dividends collected from underlying holdings and realized gains from portfolio turnover. Distribution frequency has typically been quarterly, but actual amounts and timing vary.
• Tax considerations: U.S. investors will receive ordinary dividend income and potential capital gains distributions. ETF structure can be tax‑efficient relative to mutual funds because in‑kind creation/redemption mechanisms can limit realized taxable gains, but distributions still occur.

Always consult up‑to‑date fund documents and a tax professional for personal tax implications.

Management, administration and service providers

• Sponsor/issuer: First Trust, an asset manager known for launching thematic and index‑based ETFs.
• Management: The fund is managed as an index‑tracking ETF; named advisors or portfolio managers are typically disclosed in the prospectus and regulatory filings.
• Custodian/administrator: Standard institutional custodial and administrative arrangements are in place; details are provided in official fund documents.
• ETF structure: FDN is an open‑end exchange‑traded fund that issues and redeems shares in creation units through authorized participants.

For the most current listing of service providers and any changes in management, consult the fund’s prospectus.

Rebalancing and corporate actions

• Reconstitution schedule: FDN follows the reconstitution and rebalancing calendar of the Dow Jones Internet Composite Index. Rebalances can occur quarterly or as dictated by the index methodology.
• Corporate actions: Mergers, acquisitions, spin‑offs, and other corporate actions affecting underlying securities are handled according to both index rules and ETF operational procedures; these may lead to index membership changes or portfolio turnover.

Because the fund passively follows the index, corporate events that change a company’s eligibility or weight in the index will typically translate into corresponding portfolio adjustments in FDN.

Risks and considerations

FDN embodies several principal risks that investors should weigh carefully:

• Sector concentration risk: FDN concentrates in internet companies. An adverse development that affects online platforms, digital advertising, or e‑commerce can disproportionately impact the fund.
• Single‑stock concentration: Despite caps, FDN can hold meaningful weights in a handful of mega‑cap internet firms; large moves in a single name can influence fund returns.
• Regulatory and platform risk: Internet businesses face regulatory scrutiny (privacy rules, antitrust enforcement, platform regulation) that can affect revenue models and valuations.
• Market risk and volatility: Thematic and growth‑oriented funds generally experience higher volatility than broad market ETFs.
• Liquidity and tracking error: Changes in liquidity for underlying securities, especially around rebalances, can create tracking error versus the index.

Investors should assess how a concentrated internet ETF fits within their overall portfolio risk tolerance and diversification goals. This article does not constitute investment advice.

Comparisons and alternatives

Investors considering fdn stock often compare FDN with other internet or technology ETFs. Alternatives include specialized internet ETFs, broad technology ETFs, and sector allocations such as communication‑services or consumer discretionary funds.

Key comparative dimensions:

• Methodology: Some ETFs track Nasdaq‑based internet indexes or use different eligibility rules, sampling approaches, or weighting schemes that produce different concentration and turnover profiles.
• Concentration: FDN is concentrated; other funds may be broader (covering the entire NASDAQ‑100, for example) or narrower (focusing only on small‑cap internet firms).
• Fees and liquidity: Expense ratios and liquidity profiles vary across similar ETFs; investors should compare fees, AUM, and average volume when selecting an instrument.

When comparing, review each fund’s prospectus, holdings, and methodology documents to understand trade‑offs in exposure, cost, and risk.

Investor use cases

FDN is commonly used in several portfolio roles:

• Thematic sleeve: Investors seeking explicit internet sector exposure may allocate a satellite portion of their portfolio to FDN to capture secular digital adoption trends.
• Tactical allocation: Traders and tactical investors may use FDN to express short‑term views on internet sector strength or weakness.
• Complement to broad tech exposure: Some investors add FDN alongside broader tech ETFs to tilt exposure specifically toward online business models.

Suitability considerations:

• Long‑term investors should consider FDN’s growth tilt and concentration risk and size exposure accordingly.
• Short‑term traders should monitor liquidity and spreads, particularly around corporate news affecting large internet names.

Historical timeline and notable events

• Inception (June 19, 2006): FDN was launched to provide a single fund tracking an index of internet companies, allowing investors thematic access to online business models.
• Performance episodes: Over its history, FDN has captured major internet growth stretches and has also experienced meaningful drawdowns during tech sell‑offs and regulatory shocks.
• Index changes and flows: Large flows into or out of FDN around major market events have periodically affected trading dynamics and holdings rebalancing.

For a detailed timeline of flows and performance by year, consult published fund reports and market data services.

Reception, research and analyst coverage

FDN receives coverage from financial media and research outlets as a long‑standing internet ETF. Common praise and criticisms include:

• Praise: Focused exposure to leading internet franchises, long track record, and generally tight trading spreads and liquidity for a thematic ETF.
• Criticism: Concentration and sector risk, potential for high turnover at index reconstitutions, and sensitivity to regulatory and advertising‑market cycles.

Analysts typically compare FDN with peers on the basis of methodology, fee structure, and historical tracking error. Independent research and fund fact sheets are primary sources for scrutiny.

Practical information

How to buy/sell

• Trading ticker: FDN. To buy or sell shares, place an order through your brokerage or trading platform using the ticker symbol FDN.
• Trading hours: FDN trades on NYSE Arca during U.S. equity market hours. Extended‑hours trading may be available depending on the brokerage.
• Liquidity notes: Check intraday bid‑ask spreads and average volume at the time of execution. For sizable orders, consider limit orders or working with a broker to manage market impact.
• Where to trade: When choosing a platform, consider a regulated venue with transparent pricing and order execution. For Web3 or crypto‑native investors seeking integrated services, Bitget supports a wide range of trading and custody features — and for wallet needs, Bitget Wallet offers an option for crypto custody. (This paragraph is informational and not a recommendation or endorsement of any specific trading activity.)

Where to find official documents

Consult the following official sources for current, authoritative information (search for them by name on your preferred data provider or the fund sponsor’s site):

• First Trust fund prospectus and summary prospectus for FDN
• First Trust fund fact sheet and holdings page (for latest constituent weights)
• Regulatory filings (SEC Form N‑1A and periodic reports)
• Index methodology document for the Dow Jones Internet Composite Index

Always rely on current prospectuses and regulatory filings for the latest expense ratios, holdings, performance, and legal disclosures.

See also

• Dow Jones indices (internet index families)
• Other internet and technology ETFs (review methodology and fee differences)
• Broad U.S. tech exposures and the Nasdaq‑100

References

• First Trust (fund prospectus and fact sheet)
• ETF.com (FDN fund profile and commentary)
• Morningstar (holdings and fund metrics)
• Yahoo Finance (historical quotes and performance data)
• Finviz (FDN profile)
• Webull (quote and options data)
• StockAnalysis (historical data)
• Fox Business (market coverage)
• Benzinga (market coverage and reporting cited below)

As of January 28, 2026, according to Benzinga, PayPal Holdings had meaningful weight across several ETFs, and the report noted that PayPal’s weight in First Trust DJ Internet Index Fund (FDN) was approximately 3.29% — an example of how single‑stock exposure can influence fund dynamics.

External links

(Official resources to consult by name — search for these directly on the issuer and data provider sites.)

• First Trust FDN fund page and prospectus (issuer official documentation)
• Dow Jones Internet Composite Index methodology (index provider)
• Major market data portals for live quotes and holdings (market data providers named in References)

Notes and disclaimers

• Fund data such as AUM, expense ratio, holdings, and performance change over time. Readers should consult the fund’s official prospectus, fact sheet, and up‑to‑date market data before making investment decisions.
• This article is informational and educational in nature. It does not provide investment advice, trading recommendations, or tax guidance.
• Reporting date: information that cites Benzinga is current as of January 28, 2026. Other data points and fund metrics may have more recent updates; always verify with primary sources.

Further exploration: if you want a concise holdings snapshot or recent performance table for fdn stock to compare with alternatives, indicate which time periods and benchmarks you prefer and we can generate an updated comparison based on the latest fund documents and market data.