FDN ETF ANALYSIS

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FDN ETF FUNDAMENTALS
FDN ETF PERFORMANCE

FDN ISSUER

The First Trust Advisors L.P. (FDN) issuer adheres to a stringent investment strategy, with the fund typically allocating at least 90% of its net assets to securities comprising the Index. Utilizing an indexing investment approach, FDN endeavors to mirror the performance of the Index, which is formulated and maintained by S&P Dow Jones Indices LLC. This Index is meticulously designed to gauge the performance of prominent and actively traded securities issued by U.S. companies within the Internet industry. The Index encompasses two sub-indices, namely the Dow Jones Internet Commerce Index and the Dow Jones Internet Services Index, encompassing companies engaged in various facets of Internet commerce and services. Eligibility criteria for inclusion in the Index necessitate that securities be listed on qualifying U.S. exchanges, issued by U.S.-domiciled companies generating at least 50% of sales/revenues from the Internet, with a minimum trading history and market capitalization thresholds. With quarterly rebalancing and reconstitution, FDN adjusts its portfolio accordingly, potentially exposing the Fund to various sectors and jurisdictions depending on Index changes, thereby subjecting it to associated risks. As of March 31, 2023, the Fund held significant investments in communication services, consumer discretionary, and information technology companies, although its composition may vary over time.

FDN DIVIDEND

As an exchange-traded fund (ETF) designed to track the performance of the Internet industry, First Trust Dow Jones Internet Index Fund (FDN) focuses on capital appreciation rather than dividend income. Consequently, FDN's investment strategy primarily centers around replicating the performance of the Index it tracks, which comprises leading U.S. companies in the Internet sector. Given the nature of the companies included in the Index, which often prioritize growth and reinvestment of profits over distributing dividends, FDN is not geared towards providing substantial dividend yields to investors. Instead, investors in FDN seek exposure to the dynamic growth potential of the Internet industry, with capital gains being the primary avenue for returns. Thus, individuals seeking dividend income may find other investment options more suitable to their objectives.

FDN TRACKING

First Trust Dow Jones Internet Index Fund (FDN) employs a tracking strategy focused on replicating the performance of the Index it follows, which comprises a carefully selected basket of U.S. companies operating within the Internet industry. Through meticulous adherence to this index, FDN endeavors to mirror the movements and returns of its benchmark as closely as possible, before fees and expenses. Utilizing an indexing investment approach, FDN seeks to maintain a high degree of correlation with the Index, aiming to provide investors with returns that align with the performance of the Internet sector. With its emphasis on tracking accuracy, FDN's investment methodology enables investors to gain exposure to the growth potential of prominent Internet companies while mitigating the risks associated with active management strategies. Through periodic rebalancing and adjustments in response to changes in the composition of the Index, FDN strives to uphold its commitment to faithfully tracking the performance of the Internet industry.

FDN CORRELATION

First Trust Dow Jones Internet Index Fund (FDN) demonstrates a strong correlation with the Index it seeks to replicate, which comprises leading U.S. companies within the Internet sector. FDN's investment strategy is designed to closely track the performance of its benchmark, aiming to reflect its movements and returns with a high degree of accuracy. Through rigorous adherence to the index constituents and their respective weights, FDN maintains a consistent correlation with the broader Internet industry. Investors seeking exposure to the growth potential of prominent Internet companies can rely on FDN to deliver returns that closely mirror the performance of its benchmark, thereby providing a transparent and efficient means of accessing this dynamic sector of the market.

FDN SECTOR

First Trust Dow Jones Internet Index Fund (FDN) concentrates its investments primarily within the Internet sector, reflecting the composition of the Index it tracks. With a focus on capturing the growth potential of U.S. companies operating within this dynamic industry, FDN's portfolio encompasses a diverse array of businesses engaged in online retail, search, financial services, social media, advertising, cloud computing, and digital marketing platforms, among others. By maintaining a sector-specific approach, FDN offers investors targeted exposure to the innovative and rapidly evolving landscape of the Internet industry. This strategic allocation allows FDN to capitalize on emerging trends and technological advancements within the sector, providing investors with the opportunity to participate in the growth potential of leading Internet companies while diversifying their investment portfolios.

FDN EXPOSURE

First Trust Dow Jones Internet Index Fund (FDN) provides investors with exposure to the vibrant and rapidly evolving Internet industry. With a focus on tracking the performance of the Index it mirrors, FDN offers investors a convenient and efficient means of accessing a diversified portfolio of U.S. companies operating within the Internet sector. By investing in FDN, investors gain exposure to a broad spectrum of Internet-related businesses, including online retail, search, financial services, social media, cloud computing, and digital marketing platforms. This exposure allows investors to capitalize on the growth potential of leading Internet companies while diversifying their investment portfolios. Additionally, FDN's investment strategy prioritizes transparency and tracking accuracy, ensuring that investors can confidently align their investment objectives with the performance of the Internet industry.

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