At a glance
FDNI charges 0.65% a year, above the 0.08% average of the 2 funds most like it (the most expensive of 3). It has $32.9M in assets, the 3rd largest of that group; it paid 1.49% of its price in distributions over the past 12 months, annual. Over the past year it returned −33.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 3 funds; over three years it returned +10.0% a year. At its worst it fell 27.4% in the 2020 crash (S&P 500: 33.7%) and 49.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 34 months after the lows. Its ten largest positions make up 62.1% of the fund, out of 40 in all.
The short version
First Trust Dow Jones International Internet ETF (FDNI) tracks an index of 40 large internet companies based outside the US, offering focused exposure to firms such as Shopify, Tencent and Alibaba. It is highly concentrated, with 62% of assets in its 10 largest holdings as of June 30, 2026, and leans heavily on Chinese companies. It also costs 0.65% a year, far more than broad emerging-markets funds such as VWO at 0.07%.
Price history
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FDNI -33.5% 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 | |
|---|---|---|---|---|---|---|
| FDNI official prospectus, to Dec 31, 2025 | — | +26.08% | — | -5.06% | — | +8.90% |
| FDNI price data to Oct 27, 2026 | -24.9% | -33.5% | +10.0% | -9.4% | — | +3.8% |
- Over the year to Oct 27, 2026, FDNI returned -33.5%, 3rd of 3 among similar funds.
- Its 5-year annualized return was -9.4%.
- In the 2020 COVID crash it fell 27.4% and regained its old high 1.6 months after the low.
- Its worst full calendar year was 2022 (-38.4%); its best was 2020 (+85.3%).
- The deepest fall in its price history was 71.1% (Feb 16, 2021 to Oct 24, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -24.9% | — |
| 2025 | +25.7% | +26.08% |
| 2024 | +22.5% | +22.38% |
| 2023 | +1.8% | +2.13% |
| 2022 | -38.4% | -38.79% |
| 2021 | -20.6% | -20.03% |
| 2020 | +85.3% | +85.86% |
| 2019 | +38.4% | +37.67% |
| 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 | Lost 24.5% over that stretch · deepest drop along the way 27.4%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 48.7% over that stretch · deepest drop along the way 49.1%, back to its old high 34.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.3800 | +31.0% |
| 2024 | $0.2900 | +222.2% |
| 2023 | $0.0900 | +28.6% |
| 2020 | $0.0700 | -90.9% |
| 2019 | $0.7700 |
What's inside
As of Jun 30, 2026, the fund held 40 securities; the ten largest made up 62.13% of assets.
| Holding | Weight | |
|---|---|---|
| SHOPIFY INC | 10.89% | |
| TENCENT HOLDINGS LTD | 9.71% | |
| ALIBABA GROUP HOLDING LTD | 8.57% | |
| SPOTIFY TECHNOLOGY SA | 5.60% | |
| NETEASE INC | 4.92% | |
| SEA LTD | 4.69% | |
| PDD HOLDINGS INC | 4.66% | |
| PROSUS NV | 4.51% | |
| NASPERS LTD | 4.41% | |
| JD.COM INC | 4.17% | |
| MEITUAN LLC | 4.09% | |
| BAIDU INC | 3.90% | |
| ADYEN NV | 3.75% | |
| NAVER CORP | 2.30% | |
| IREN LTD | 1.97% |
By country
Cayman Islands 48.81%Canada 12.56%Netherlands 8.27%Luxembourg 6.95%South Africa 4.41%By asset type
Stocks 99.73%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $7.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.02%, -2.11%, -7.62%.
How it works
FDNI is an index fund. It aims to match, before fees, the Dow Jones International Internet Index from S&P Dow Jones Indices. It normally keeps at least 90% of net assets in the index's stocks. Candidates come from the S&P Global ex-U.S. Broad Market Index, which covers stocks outside the US. Each company must be classed as Internet Commerce or Internet Services, earn at least half its revenue from internet activities, and meet size and trading rules.
The index picks 20 companies from each group, for 40 in all. The top 16 by size get in automatically. Existing members ranked 17th to 24th keep their spots before newcomers fill any gaps, which limits churn. Weights follow float-adjusted market value: bigger companies carry more weight, counting only shares available to trade. At each quarterly rebalance, no company may exceed 10%, and companies above 4.5% are capped at 45% combined. Prices drift between rebalances. Shopify stood at 10.9% as of June 30, 2026.
Many big Chinese internet firms can't be owned directly by foreign investors. To get around this, the fund holds shares of offshore shell companies that control the Chinese businesses through contracts, a setup called a variable interest entity (VIE). VIEs give economic exposure, not true ownership, and their legal standing in China is uncertain. The fund is also non-diversified, so it can put more into one stock than a diversified fund can.
What it really costs
- FDNI charges 0.65% a year, versus an average of 0.08% for the similar funds below (3rd of 3, cheapest first).
In a retirement portfolio
Its narrow focus on 40 non-US internet stocks, heavy China exposure and a 71.1% drop from peak to low make it a higher-risk add-on, not a foundation.
FDNI adds exposure to big non-US internet companies, but with large swings. It launched in 2018, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 27.4%, then recovered in about 1.6 months. The 2022 downturn was harsher: a 49.1% drop that took about 34 months to recover. Its worst calendar year was 2022, a 38.8% loss. Its deepest fall, 71.1% from February 2021 to October 2022, had not been recovered as of October 27, 2026. Withdrawing during such a slump means cashing out at depressed prices and locking in losses.
Income is small: the yield was 1.49% as of October 27, 2026, paid once a year. The 0.65% annual expense ratio is high next to broad emerging-markets funds at 0.07% to 0.09%. Past results don't predict future ones, and a retirement plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, targeted slice of non-US internet stocks such as Tencent, Alibaba, Shopify and Spotify alongside a broader core portfolio.
- Investors comfortable with heavy China exposure, partly held through offshore contract structures called VIEs rather than direct shares, plus the regulatory risks involved.
- Long-horizon investors able to ride out deep drops; it fell 49.1% from January to October 2022 and took about 34 months to recover.
Look elsewhere if
- Cost-conscious investors: the 0.65% expense ratio is several times the 0.07% to 0.09% charged by broad emerging-markets funds such as VWO and IEMG.
- Income seekers: the yield was 1.49% as of October 27, 2026, paid in a single annual distribution.
- Anyone wanting broad diversification: it holds 40 stocks, with 62% of assets in its top 10 as of June 30, 2026.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does FDNI invest in?
FDNI invests in 40 large internet companies based outside the US. It tracks the Dow Jones International Internet Index, which includes 20 internet commerce and 20 internet services firms. As of June 30, 2026, the largest holdings were Shopify (10.9%), Tencent (9.7%), Alibaba (8.6%), Spotify (5.6%) and NetEase (4.9%). The top 10 made up 62% of assets. The prospectus notes significant exposure to Chinese and other Asian companies.
How has FDNI performed?
FDNI's returns have swung widely. Its prospectus showed a 26.08% return for the year to December 31, 2025, an average loss of 5.06% a year over the five years to that date, and an average gain of 8.9% a year since its 2018 launch. Calendar years ranged from an 85.86% gain in 2020 to a 38.79% loss in 2022. Based on price, it fell 24.9% in 2026 through October 27.
What's the difference between FDNI and VWO?
FDNI is a narrow, 40-stock internet fund, while Vanguard FTSE Emerging Markets ETF (VWO) is a broad emerging-markets fund. VWO is the closest match by holdings overlap, yet the two share only about 9% of their holdings. FDNI costs 0.65% a year, versus 0.07% for VWO. Returns have diverged too: FDNI fell 33.5% in the year to October 27, 2026, while VWO gained 3.3% in the year to October 30, 2026.
Does FDNI pay dividends?
Yes, but the payout is small and comes once a year. FDNI paid $0.38 per share in the year to October 27, 2026, a yield of 1.49%. With only one distribution a year, the fund isn't built to supply steady income. Its results depend far more on swings in share prices than on dividends.
Is FDNI good for retirement?
FDNI is a concentrated, high-risk fund that may suit only a small slice of a retirement portfolio. It fell 49.1% in the 2022 downturn and took about 34 months to recover. Its deepest drop, 71.1% from February 2021 to October 2022, had not been recovered as of October 27, 2026. It is also small, with about $32.9 million in net assets as of June 30, 2026, and small funds are more likely to close. Past results don't predict future ones.