At a glance
FDN charges 0.49% a year, below the 0.59% average of the 7 funds most like it (the 2nd cheapest of 8). It has $4.98B in assets, the 2nd largest of that group. Over the past year it returned −1.2% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +23.7% a year. At its worst it fell 30.5% in the 2020 crash (S&P 500: 33.7%) and 46.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 29 months after the lows. Its ten largest positions make up 60.9% of the fund, out of 42 in all.
The short version
First Trust Dow Jones Internet Index Fund (FDN) is an ETF that tracks the Dow Jones Internet Composite Index. The index is a rules-based list of about 40 mostly US companies, such as Amazon, Meta and Alphabet, that earn at least half their revenue from the internet. Its 0.49% expense ratio is below the 0.59% average for similar funds. It is also a concentrated, volatile fund that fell 45.5% in 2022 and pays no dividend.
Price history
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FDN -1.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FDN official prospectus, to Dec 31, 2025 | — | +10.59% | — | +4.86% | +13.69% | +14.26% |
| FDN price data to Oct 27, 2026 | +4.8% | -1.2% | +23.7% | +3.2% | +13.2% | +13.8% |
- Over the year to Oct 27, 2026, FDN returned -1.2%, 6th of 8 among similar funds.
- Its 5-year annualized return was +3.2% and its 10-year +13.2%.
- In the 2020 COVID crash it fell 30.5% and regained its old high 1.7 months after the low.
- Its worst full calendar year was 2022 (-45.5%); its best was 2009 (+79.1%).
- The deepest fall in its price history was 61.5% (Oct 12, 2007 to Nov 20, 2008), recovered by Apr 14, 2010.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.8% | — |
| 2025 | +10.7% | +10.59% |
| 2024 | +30.4% | +30.52% |
| 2023 | +51.5% | +51.44% |
| 2022 | -45.5% | -45.51% |
| 2021 | +6.5% | +6.43% |
| 2020 | +52.5% | +52.65% |
| 2019 | +19.3% | +19.26% |
| 2018 | +6.2% | +6.23% |
| 2017 | +37.6% | +37.62% |
| 2016 | +7.0% | +6.91% |
| 2015 | +21.7% | — |
| 2014 | +2.4% | — |
| 2013 | +53.6% | — |
| 2012 | +20.6% | — |
| 2011 | -5.8% | — |
| 2010 | +36.7% | — |
| 2009 | +79.1% | — |
| 2008 | -44.0% | — |
| 2007 | +11.3% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 53.4% over that stretch · deepest drop along the way 61.5%, back to its old high 16.8 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 27.6% over that stretch · deepest drop along the way 30.5%, back to its old high 1.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 45.1% over that stretch · deepest drop along the way 46%, back to its old high 28.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2011 | $0.0200 | -50.0% |
| 2010 | $0.0400 | -20.0% |
| 2008 | $0.0500 |
What's inside
As of Jun 30, 2026, the fund held 42 securities; the ten largest made up 60.94% of assets.
| Holding | Weight | |
|---|---|---|
| AMAZON.COM INC | 9.98% | |
| META PLATFORMS INC | 9.83% | |
| CISCO SYSTEMS INC | 8.54% | |
| ALPHABET INC Class A | 5.55% | |
| ARISTA NETWORKS INC | 5.02% | |
| BOOKING HOLDINGS INC | 4.98% | |
| ORACLE CORP | 4.59% | |
| ALPHABET INC Class C | 4.43% | |
| SALESFORCE INC | 4.11% | |
| NETFLIX INC | 3.90% | |
| SNOWFLAKE INC | 3.61% | |
| DATADOG INC | 3.53% | |
| CLOUDFLARE INC | 3.22% | |
| DOORDASH INC | 2.87% | |
| CIENA CORP | 2.85% |
By country
United States 99.19%Ireland 0.73%By asset type
Stocks 99.92%RA 0%By sector
Sectors of the companies held, for the 90.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $161.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +12.56%, +7.55%, -6.56%.
How it works
FDN aims to match the Dow Jones Internet Composite Index, before fees. S&P Dow Jones Indices builds and maintains the index. FDN is an index fund, so it holds the stocks on a published list instead of having a manager pick them. It normally keeps at least 90% of its net assets in the index's stocks. To qualify, a company must earn at least 50% of its sales from the internet, have three months of trading history and pass size and trading-volume tests.
The index holds 40 companies in two groups. Fifteen come from Internet Commerce, such as online retail, search, social media and travel platforms. Twenty-five come from Internet Services, such as cloud computing, enterprise software and networking. Companies are ranked on float-adjusted market value (the value of shares the public can trade) and on daily trading value. Existing members get some leeway to stay, which limits churn. Portfolio turnover was 15%, according to the latest prospectus.
Stocks are weighted by float-adjusted market value. No single stock can exceed 10%, and stocks above 4.5% cannot total more than 45% combined. The index is rebalanced and reconstituted quarterly. As of June 30, 2026, Amazon (10.0%), Meta (9.8%) and Cisco (8.5%) led the fund. Alphabet's two share classes together made up about 10%, and the top 10 holdings were 60.9% of assets.
What it really costs
- FDN charges 0.49% a year, versus an average of 0.59% for the similar funds below (2nd of 8, cheapest first).
- Of that, 0.39% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FDN is a concentrated bet on about 40 internet stocks with deep past drops and no income, so it fits as a small add-on rather than a foundation.
FDN could add focused exposure to large internet businesses alongside a broad stock fund, but its swings have been big. It fell 61.5% from October 2007 to November 2008 and took about 17 months to recover. In 2020 it dropped 30.5% and recovered in under two months. In 2022 it fell 46% and needed about 29 months, until November 2024, to regain its peak. Its worst calendar year was 2022, at -45.5%. Anyone forced to sell shares in a slump like that would lock in losses. FDN made no distributions in the year through October 27, 2026, so any cash would have to come from selling shares. Its 0.49% expense ratio is below the 0.59% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want rules-based exposure to large internet firms like Amazon, Meta and Alphabet, held as a small slice of a diversified portfolio.
- Long-horizon holders who could sit through a drop like 2022's 45.5% loss and a recovery that took about 29 months.
- Cost-conscious buyers of an internet fund: its 0.49% expense ratio ranks 2nd-lowest of 8 similar funds, whose average is 0.59%.
Look elsewhere if
- People who need income from their holdings: FDN made no distributions in the year through October 27, 2026.
- Investors who want broad diversification: about 61% sits in 10 stocks, and over 99% is in US companies.
- Anyone who may need to sell in a downturn: with a one-year beta of 1.28, FDN has moved more sharply than the overall market.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FDN this fund | — | 0.49% | $4.98B | -1.2% | +23.7% |
| PNQI Invesco NASDAQ Internet ETF | 43% | 0.6% | $512.2M | -10.9% | +20.2% |
| LSGR Natixis Loomis Sayles Focused Growth ETF | 30% | 0.59% | $839.1M | -2.0% | +23.9% |
| KQQQ Kurv Technology Titans Select ETF | 25% | 1.08% | $126.0M | +9.9% | — |
| VUG Vanguard Growth ETF | 22% | 0.04% | $379.29B | +3.8% | +25.1% |
| CARK CastleArk Large Growth ETF | 21% | 0.54% | $319.2M | +4.4% | — |
| FFOG Franklin Focused Growth ETF FOCUSED GROWTH … | 21% | 0.55% | $311.7M | -0.4% | — |
| PJFG PGIM Jennison Focused Growth ETF | 21% | 0.75% | $140.3M | +3.6% | +25.2% |
Questions investors ask
Does FDN pay a dividend?
No. FDN made no distributions in the 12 months through October 27, 2026, and its trailing yield was 0%. Its returns have come from changes in share price rather than income. An investor who wants cash from the fund would need to sell shares. That can be costly after a sharp drop, like the 46% fall during the 2022 bear market.
What's the difference between FDN and PNQI?
Both are internet-stock index ETFs, but FDN costs less and is much larger. FDN tracks the Dow Jones Internet Composite Index at 0.49% a year. Invesco NASDAQ Internet ETF (PNQI) charges 0.60%. About 43% of their holdings overlap. FDN's net assets were about $4.98 billion as of June 30, 2026, versus about $512 million for PNQI as of July 31, 2026. Through October 27, 2026, FDN returned -1.2% over one year versus -10.9% for PNQI.
What are FDN's top holdings?
As of June 30, 2026, FDN's largest holdings were Amazon (10.0%), Meta Platforms (9.8%) and Cisco Systems (8.5%). Next came Alphabet, held through two share classes worth about 10% combined, followed by Arista Networks (5.0%), Booking Holdings (5.0%), Oracle (4.6%), Salesforce (4.1%) and Netflix (3.9%). The fund held 42 stocks, and the top 10 holdings made up 60.9% of assets, so a few companies drive much of its performance.
How much did FDN lose in 2022?
FDN lost 45.51% in calendar year 2022, according to its prospectus. That was its worst full year. From its peak on January 3, 2022, it fell 46% by June 16, 2022. It did not regain that peak until November 6, 2024, about 29 months later. Its worst single quarter was the one ending June 30, 2022, at -32.28%.
How has FDN performed over 10 years?
FDN returned an average of 13.69% a year over the 10 years ending December 31, 2025, according to its prospectus. Results over shorter periods were more uneven. Its five-year average was 4.86% a year, and its one-year return was 10.59%. Since its 2006 launch, it averaged 14.26% a year. Those gains came with large swings, including calendar-year returns ranging from 52.65% in 2020 to -45.51% in 2022.