At a glance
It has $9.8M in assets, the 8th largest of that group; it paid 8.58% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.9% with distributions reinvested (S&P 500: +11.5%), 7th of those 9 funds. Its ten largest positions make up 60.4% of the fund, out of 41 in all.
The short version
First Trust's FT Vest Dow Jones Internet & Target Income ETF (FDND) holds about 40 large U.S. internet stocks tracking the Dow Jones Internet Composite Index and sells call options on the Nasdaq-100 for income. It aims for monthly payouts about 8 percentage points above the Nasdaq-100's dividend yield (trailing yield: 8.58% as of October 27, 2026). In return, it gives up some upside in strong rallies and charges a 0.75% management fee.
Price history
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FDND -1.9% 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 | |
|---|---|---|---|---|---|---|
| FDND official prospectus, to Dec 31, 2025 | — | +9.43% | — | — | — | +14.45% |
| FDND price data to Oct 27, 2026 | +3.4% | -1.9% | — | — | — | +11.3% |
- Over the year to Oct 27, 2026, FDND returned -1.9%, 7th of 9 among similar funds.
- Its worst full calendar year was 2025 (+10.4%); its best was 2025 (+10.4%).
- The deepest fall in its price history was 24.1% (Feb 14, 2025 to Apr 8, 2025), recovered by Jun 27, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.4% | — |
| 2025 | +10.4% | +9.43% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4100 | |
| 2025 | $1.9900 |
What's inside
As of Jul 31, 2026, the fund held 41 securities; the ten largest made up 60.39% of assets.
| Holding | Weight | |
|---|---|---|
| AMAZON.COM INC | 10.92% | |
| META PLATFORMS INC | 9.33% | |
| CISCO SYSTEMS INC | 8.10% | |
| ALPHABET INC Class A | 5.31% | |
| BOOKING HOLDINGS INC | 5.17% | |
| ARISTA NETWORKS INC | 4.75% | |
| SALESFORCE INC | 4.63% | |
| ALPHABET INC Class C | 4.29% | |
| SNOWFLAKE INC | 3.99% | |
| ORACLE CORP | 3.91% | |
| NETFLIX INC | 3.76% | |
| CLOUDFLARE INC | 3.52% | |
| DATADOG INC | 3.49% | |
| DOORDASH INC | 2.93% | |
| AIRBNB INC | 2.49% |
By country
United States 98.48%Ireland 0.71%By asset type
Stocks 99.19%By sector
Sectors of the companies held, for the 90.7% 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 Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $11K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.44%, -6.72%, +4.36%.
How it works
FDND's stocks aim to track the Dow Jones Internet Composite Index from S&P Dow Jones Indices. The index seeks 40 of the largest, most actively traded U.S. companies that earn at least half their revenue online. They must be in internet commerce (like retail, search and social media) or internet services (like cloud computing and enterprise software). The portfolio managers pick and weight the stocks to track the index.
Vest Financial, the fund's sub-advisor, sells call options on the Nasdaq-100 Index or on ETFs that track it. A call option pays its buyer if prices rise above a set “strike” level. In exchange, the fund collects an upfront fee called a premium. If the Nasdaq-100 is below the strike at expiry, the fund keeps the premium. If it is above, the fund owes the difference and may need to raise cash by selling stocks. The options and the stocks follow different indexes, so stock gains may not offset option losses.
Each week, the fund compares its stocks' dividends with its payout target and tries to fill the gap with option premiums. The target is about 8.0% a year, before fees and expenses, above the Nasdaq-100's dividend yield (0.64% for 2025). Monthly payouts aren't guaranteed and may exceed the fund's income and gains. The fund doesn't aim to match either index's total return.
What it really costs
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
Its high monthly payout rests on a concentrated group of about 40 internet stocks, and its one-year beta of 1.15 as of October 27, 2026, means it has swung more than the broad market.
FDND could add monthly income. It paid $1.87 a share over the 12 months to October 27, 2026, a trailing yield of 8.58%. That income rests on about 40 volatile internet stocks. The fund launched in March 2024, so it has no record through the 2008, 2020 or 2022 sell-offs. Its deepest drop was 24.1%, from February 14 to April 8, 2025. It regained its February peak by June 27, 2025, about 2.6 months after the low. Anyone selling shares to raise cash in that stretch would have locked in losses. Its only full calendar year, 2025, still returned 9.43%.
Option income is usually taxed as ordinary income, and payouts may exceed the fund's income and gains. The 0.75% management fee compares with a 0.66% average expense ratio for similar funds. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income tied to big internet stocks, led by Amazon (10.9%), Meta Platforms (9.3%) and Cisco (8.1%) as of July 31, 2026.
- Those willing to give up some gains in strong Nasdaq-100 rallies for a trailing yield of 8.58% as of October 27, 2026.
- Investors who want a small side position and can ride out drops like its 24.1% fall from February to April 2025.
Look elsewhere if
- Investors wanting full internet-stock upside at lower cost: FDN overlaps 95% by holdings, without the option strategy, at a 0.51% expense ratio.
- Anyone seeking a diversified core holding: it owns about 40 internet stocks, and the top 10 were 60.4% of assets as of July 31, 2026.
- Taxable-account investors wanting lower-taxed dividends: option income is usually taxed as ordinary income, and payouts may exceed the fund's income and gains.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FDND this fund | — | — | $9.8M | -1.9% | — |
| FDN First Trust Dow Jones Internet Index Fund · different strategy | 95% | 0.51% | $4.98B | -1.2% | +23.7% |
| PNQI Invesco NASDAQ Internet ETF · different strategy | 43% | 0.6% | $512.2M | -10.9% | +20.2% |
| LSGR Natixis Loomis Sayles Focused Growth ETF · different strategy | 30% | 0.59% | $839.1M | -2.0% | +23.9% |
| KQQQ Kurv Technology Titans Select ETF · different strategy | 25% | 1.08% | $126.0M | +9.9% | — |
| BGRO iShares Large Cap Growth Active ETF · different strategy | 24% | 0.55% | $8.9M | +5.7% | — |
| FEPI REX FANG & Innovation Equity Premium Income… | 21% | 0.65% | $647.2M | +7.6% | +20.6% |
| CARK CastleArk Large Growth ETF · different strategy | 21% | 0.54% | $319.2M | +4.4% | — |
Questions investors ask
Does FDND pay monthly dividends?
Yes. FDND expects to pay distributions every month, funded by stock dividends and premiums from selling call options. Over the 12 months to October 27, 2026, it paid $1.87 a share, a trailing yield of 8.58%. It targets payouts about 8 percentage points above the Nasdaq-100's dividend yield, before fees and expenses, but the target isn't guaranteed. Distributions can exceed the fund's income and gains. Option income is usually taxed as ordinary income, not at the lower rates for qualified dividends.
Is FDND a covered call ETF?
Not exactly. FDND sells call options for income, as covered call funds do. But its options are on the Nasdaq-100 Index or on ETFs that track it, while its stocks track the Dow Jones Internet Composite Index. A classic covered call is written on assets the fund owns. If the Nasdaq-100 ends above the option's strike, or set price, FDND owes the difference. It may need to raise cash by selling stocks, even if its internet holdings gained less or fell.
What's the difference between FDND and FDN?
The main difference is FDND's option-income strategy, which gives up some upside for monthly income. First Trust's Dow Jones Internet Index Fund (FDN) owns internet stocks without it. The two funds' holdings overlapped 95% in their latest SEC holdings reports. FDN charges a 0.51% expense ratio, and FDND's management fee is 0.75%. FDN is far larger: $5.0 billion in net assets as of June 30, 2026, versus FDND's $9.8 million as of July 31, 2026. Over the year to October 27, 2026, FDN lost 1.2% and FDND lost 1.9%.
How has FDND performed?
FDND returned 9.43% in 2025, its only full calendar year, according to its prospectus. Its average annual return from its March 2024 launch through December 31, 2025, was 14.45%. Its strongest quarter gained 19.44% (ended June 30, 2025), and its weakest lost 7.68% (ended March 31, 2025). Later figures are weaker: it lost 1.9% over the year to October 27, 2026, though it was up 3.4% year to date. Its record spans only about 2.6 years.
Is FDND good for retirement income?
It may suit retirees who want high monthly income and can accept sharp swings, but it is a higher-risk choice. The trailing yield was 8.58% as of October 27, 2026. But the fund owns about 40 internet stocks and fell 24.1% from February to April 2025. It launched in March 2024, so it has no record through the 2022 bear market. It's worth comparing with REX FANG & Innovation Equity Premium Income ETF (FEPI), which uses a similar option-income approach and charges 0.65%.