Looking for broad exposure to the Technology - Internet segment of the equity market? You should consider the First Trust Dow Jones Internet ETF (FDN Quick QuoteFDN - Free Report) , a passively managed exchange traded fund launched on June 19, 2006.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $7.17 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Internet segment of the equity market. FDN seeks to match the performance of the Dow Jones Internet Composite Index before fees and expenses.

The Dow Jones Internet Composite Index includes only companies whose primary focus is Internet-related.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 35.3% of the portfolio. Telecom and Consumer Discretionary round out the top three.

Looking at individual holdings, Netflix, Inc. (NFLX) accounts for about 9.7% of total assets, followed by Meta Platforms, Inc. (class A) (META) and Amazon.com, Inc. (AMZN).

The top 10 holdings account for about 61.62% of total assets under management.

Performance and Risk

So far this year, FDN return is roughly 12.05%, and is up roughly 15.69% in the last one year (as of 11/10/2025). During this past 52-week period, the fund has traded between $200.29 and $287.34.

The ETF has a beta of 1.17 and standard deviation of 23.74% for the trailing three-year period, making it a high risk choice in the space. With about 42 holdings, it has more concentrated exposure than peers.

Alternatives

First Trust Dow Jones Internet ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FDN is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

ALPS (OGIG) tracks OSHARES GLOBAL INTERNET GIANTS INDEX and the Invesco NASDAQ Internet ETF (PNQI) tracks NASDAQ Internet Index. ALPS has $156.49 million in assets, Invesco NASDAQ Internet ETF has $776.74 million. OGIG has an expense ratio of 0.48%, and PNQI charges 0.6%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.