Topic: How To Invest

Q: Pat, can I get an opinion on The First Trust Dow Jones Internet Index Fund ETF. How does it compare to an ETF like Invesco QQQ ETF?

Article Excerpt

A: The First Trust Dow Jones Internet Index Fund ETF, $124.03, symbol FDN on New York, aims to track the Dow Jones Internet Composite Index. For a stock to be considered for a spot in the index, the company must generate at least 50% of its annual sales/revenues from the Internet. Other criteria include a market capitalization of at least $100 million, a share price above $10 if it is not currently in the index, and adequate liquidity. This $8.5 billion ETF has an MER of 0.53%. Its top holdings are Alphabet, 10.1%; Amazon.com, 10.0%; Facebook, 8.1%; Netflix, 5.7%; PayPal Holdings, 5.1%; Salesforce.com, 5.0%; Twitter, 3.1%; eBay, 3.1%; and TD Ameritrade, 2.6%. The industry breakdown is Information Technology, 39.6%; Communication Services, 33.7%; Consumer Discretionary, 18.5%; Financials, 6.0%; and Health Care, 2.2%. The Invesco QQQ ETF, symbol QQQ on Nasdaq, holds stocks that represent the Nasdaq 100 Index. They include the exchange’s 100 largest stocks by market cap. This ETF first began trading on March…

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