First Trust Dow Jones International Internet ETF (FDNI)

Overview

The fund is an investment entity that primarily focuses on allocating its resources into common stocks and depositary receipts that are part of a specific index. This index is intricately linked with non-U.S. entities whose main operations revolve around the Internet, highlighting a niche yet significant area of the global stock market. Created, maintained, and sponsored by S&P Dow Jones Indices LLC, the index stands as a measure of the performance of these internet-centric companies outside the U.S. domain. Notably, the fund adopts a non-diversified investment strategy, channeling a significant portion of its assets, at least 90%, towards the securities that make up its benchmark index. This approach inherently underscores a focused investment philosophy, prioritizing depth in a specific sector over breadth across multiple sectors.

Products and Services

• Common Stocks and Depositary Receipts Investments

  The primary product offering of the fund involves investing in common stocks and depositary receipts. These financial instruments represent equity in companies whose predominant business interests are tied to the Internet sector, specifically targeting entities based outside the United States. By investing in these instruments, the fund aims to gain exposure to the growth potential of the global Internet industry.

• Index-Bound Investment Approach

  As a cornerstone of its investment strategy, the fund commits at least 90% of its net assets, including investment borrowings, to securities that form the crux of its guiding index. This index-centric approach allows the fund to stay aligned with the performance trajectory of selected Internet-focused non-U.S. companies, thereby mirroring the investment results that the index depicts over time.