First Trust Dow Jones Internet UCITS ETF

Issuer: First Trust

Asset Class: Equity

TER: 55bps

Trading Currency: USD

Pays Income: False

Listing Date: 21 Jun 2018

Ticker: FDNU

ISIN: IE00BG0SSC32

This fund offers targeted exposure to companies at the forefront of the digital economy, whose business models are fundamentally based on the internet. It invests in firms that are leaders in areas such as e-commerce, social media, cloud computing, online entertainment, and internet services. These businesses are deeply integrated into the daily lives of consumers and the operations of modern enterprises, positioning them to capitalize on the secular trend of increasing global connectivity and digitalization.

By tracking an index of the largest and most actively traded internet stocks, the portfolio provides a concentrated yet representative slice of this dynamic industry. The constituent companies are primarily domiciled in the United States, reflecting the nation's leadership in technological innovation and the global internet space. The strategy focuses on businesses that generate at least 50% of their cash flows from the internet, ensuring a pure-play investment in the theme. This approach allows investors to gain direct access to the growth potential of both established internet giants and emerging disruptors shaping the future of digital interaction and commerce.

This thematic investment is suitable for those looking to add a growth-oriented component to a diversified portfolio. It serves as a tactical tool to express a bullish view on the long-term expansion of the internet sector. While the focused nature of the fund can lead to higher volatility compared to broad market indices, it also offers the potential for significant returns driven by innovation, network effects, and the continuous integration of the internet into new facets of the global economy. As such, it is designed for investors with a longer time horizon and a higher tolerance for risk.