Oct 24, 2026, 8:35 PM ETFirst Trust Dow Jones Internet Index Fund ETF (FDN)Vasily Zyryanov2.3K FollowersI maintain the hold rating on the First Trust Dow Jones Internet Index Fund ETF.FDN's concentrated portfolio has solid growth and quality characteristics, yet QQQM is stronger when it comes to GARP metrics.FDN has underperformed QQQ and XLK since 2006. Over November 2020–September 2026, it underperformed QQQM and XLK, as well as the market proxied with IVV.Its very deep maximum drawdowns and high downside capture ratio warrant additional caution given the market situation.While not defending a sell rating given its high quality, I have significant reservations about FDN's strategy and performance.J Studios/DigitalVision via Getty ImagesToday, I would like to offer a reassessment of the First Trust Dow Jones Internet Index Fund ETF (FDN), a passively managed vehicle offering exposure to expensive tech and tech-ish high achievers.I covered FDNThis article was written byVasily Zyryanov2.3K FollowersVasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments