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First Trust DJ Internet Index ETF (FDN)

- NYSEARCA
  • Dec. 16, 2014, 3:59 PM
    • Internet stocks have posted substantial losses after a morning market rally proved short-lived. The Nasdaq is down 1.2%.
    • In addition to Google, which has made new 52-week lows, Facebook (FB -3%), Twitter (TWTR -4.7%), Amazon (AMZN -3.5%), and Netflix (NFLX -3.2%) are among the underperforming names. Other decliners: Z -5.5%. TRLA -5.4%. MELI -5.4%. ZNGA -4.9%. ZU -3.2%. ANGI -3.4%.
    • The selloff comes even though Goldman upgraded its rating for the sector to Attractive from Neutral today. The firm noted Internet stocks are collectively down 16% over the last 12 months (maybe 18%-19% after today), and that forward EV/EBITDA multiples have contracted significantly.
    • Internet/social media ETFs: FDN, PNQI, SOCL
    | 12 Comments
  • Dec. 12, 2014, 3:33 AM
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  • Nov. 13, 2014, 12:20 PM
    • The Emerging Markets Internet & Ecommerce ETF (NYSEARCA:EMQQ) is the first ETF to offer investors exposure to the growing investment opportunities in internet and e-commerce firms focusing on both the emerging and frontier markets.
    • Rather than tracking firms located in emerging and frontier markets, EMQQ will follow a portfolio of firms that derive a majority of their assets or revenues from Internet and e-commerce activities in emerging market nations, as stated in the prospectus.
    • “The indexes used by the biggest Emerging Markets ETFs have lots of differences from the index tracked by EMQQ. They hold hundreds of state-owned companies including massive banks and oil companies, while most of Internet and Ecommerce companies are excluded. The EMQQ index helps investors get more exposure to the growth of online consumption in the developing world," said Kevin Carter, CEO, in a press release.
    • Other internet & e-commerce ETFs: FDN, PNQI, ARKW
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  • Nov. 11, 2014, 2:52 AM
    • The U.S. and China have reached an agreement to drop tariffs on a wide range of tech products, expanding upon their previous Information Technology Agreement at a time of strained relations.
    • Eliminating tariffs on sales of roughly $1T, the deal would liberalize trade in more than 250 categories ranging from semiconductors to medical devices.
    • The agreement has yet to be signed off by other countries involved in the talks, and will be discussed in Geneva by members of the WTO in December.
    • ETFs: XLK, VGT, KWEB, SOXL, FDN, TECL, USD, SMH, TDIV, IYZ, IYW, ROM, VOX, SOXX, CQQQ, XSD, QQQC, SOXS, PBS, TECS, FTEC, RYT, IGV, IGM, QTEC, FXL, PSI, PSCT, SSG, IGN, MTK, PXQ, REW, XTL, XSW, PSJ, PTF, FCOM, LTL, TLL
    | 4 Comments
  • Oct. 26, 2014, 9:44 AM
    | 14 Comments
  • Oct. 15, 2014, 4:45 PM
    • Internet stocks are selling off in AH trading as Netflix craters in response to its light Q3 subscriber adds and disappointing Q4 guidance, and eBay slumps after providing weak Q4 guidance and reporting only 6% Y/Y Q3 Marketplaces growth.
    • Google (NASDAQ:GOOG) -1.6% AH. Facebook (NASDAQ:FB) -1.5%. Amazon (AMZN - taking share from eBay) -2.8%. Twitter (NYSE:TWTR) -1.9%. LinkedIn (NYSE:LNKD) -4.2%. YELP -1.4%.
    • Internet ETFs: FDN, PNQI, SOCL
    | 23 Comments
  • Oct. 4, 2014, 3:03 PM
    • The number of U.S. tech startups receiving $1B+ valuations in their first financing round rose 133% Y/Y in 1H14, says CB Insights. Meanwhile, PriceWaterhouseCoopers estimates the amount of VC funding directed towards "software" companies (includes a lot of Internet-related funding) totaled $10.1B in 1H14, up from just $4.6B a year earlier. Uber's $1.2B funding round (at a $17B valuation) helped boost PwC's figure.
    • The breakneck investment pace has led a slew of high-profile VCs to warn valuations have gotten stretched, if not suggest a fresh bubble is afoot. Kleiner Perkins' Randy Komisar: "There's too much capital and there's very few places to invest it ... risk is not being priced properly and so venture capitalists are taking high-risk, high-reward bets."
    • "No one's fearful, everyone's greedy, and it will eventually end," declared Benchmark's Bill Gurley in a recent WSJ interview. "I think that Silicon Valley as a whole or that the venture-capital community or startup community is taking on an excessive amount of risk right now. Unprecedented since ‘'99."
    • For their parts, Marc Andreessen and Fred Wilson have warned startups to curb their spendthrift ways. Andreessen: "When the market turns, and it will turn, we will find out who has been swimming without trunks on: many high burn rate co's will VAPORIZE."
    • Nonetheless, contrasting views remain easy to find. Menlo Ventures' Venky Ganesan: "While we are in an up cycle, we are nowhere close to the top ... There are pockets of irrational exuberance, but for the most part, I think it's actually fine."
    • Internet/social media ETFs: FDN, PNQI, SOCL
    • Investors in late-stage startups: GSVC, SVVC
    • Yesterday: Yahoo reportedly set to invest in Snapchat at $10B valuation
    | 5 Comments
  • Sep. 30, 2014, 1:35 PM
    • The ARK Industrial Innovation ETF (NYSEARCA:ARKQ) and the ARK Web x.0 ETF (NYSEARCA:ARKW) are the first launches in line of actively managed thematic ETFs filed with the SEC by ARK.
    • ARKQ seeks to invest in companies that are revolutionizing the industrial world and how people travel, while ARKW seeks to invest in companies that are transforming every sector of the economy thanks to Internet-enabled innovation.
    • "An acceleration in the pace of innovation makes it more challenging for analysts to analyze industries and companies, and for benchmarks to adjust. Our strategy is to find and invest in the companies that are poised to transform economic sectors and the global economy," said Cathie Wood, founder of ARK, in a press release.
    • Other Internet ETFs: FDN, PNQI
    • Other broad industrial ETFs: XLI, VIS, IYJ, FIDU, FXR, UXI, SIJ, RGI, AIRR, IPN, EXI
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  • Jul. 7, 2014, 3:56 AM
    • The U.S. has warned China that treaties and other global negotiations could be in danger if negotiations fail regarding their high-tech product international trade agreement. The agreement includes an annual $2T in trade, and eliminates tariffs and other trade barriers on IT products.
    • China has recently excluded approximately 60 new product categories, including medical devices and next-generation silicon chips, from the trade agreement. American authorities are looking to use this week’s annual U.S.-China Strategic and Economic Dialogue to update the 1996 Information Technology Agreement.
    • U.S. officials warn that if an agreement is not reached, increased opposition will be taken in Congress toward other trade deals with China.
    • ETFs: XLK, VGT, FDN, SOXL, KWEB, TECL, USD, SMH, PNQI, IYZ, TDIV, IYW, ROM, VOX, CQQQ, SOXX, QQQC, XSD, SOXS, PBS, TECS, FTEC, IGV, RYT, IGM, QTEC, PSCT, FXL, IGN, PSI, MTK, SSG, REW, PXQ, XSW, XTL, PSJ, PTF, FCOM, LTL, TLL
    | 1 Comment
  • May 28, 2014, 7:11 PM
    • Whereas smartphone penetration in the 15 biggest developed markets was at 65% at the end of 2013, it was only 23% for the 15 biggest emerging markets, notes Mary Meeker in a mobile-centric 2014 Internet Trends Report.
    • Global smartphone penetration has reached 22%, well above 11% penetration for laptops and 10% penetration for desktops. Tablets are still only at 6%, and mobile phones in general at 73%. There were 2.61B global Web users at the end of 2013, and 1.79B smartphone subs.
    • Mobile made up 25% of Internet traffic as of May 2014, up from 15% a year ago and 10% two years ago. Asia and Africa are respectively at 37% and 38%. Mobile accounts for over 1/5 of online video time (favorable for YouTube).
    • Internet ad sales grew 16% last year to $116B. Google (GOOG) had a Q1 annualized ad ARPU of $45 (up $3 Y/Y), dwarfing Facebook's (FB) $7.24 (up $2.84), and Twitter's (TWTR) $3.55 (up $1.58). Mobile is estimated to account for 20% of media time spent, and just 4% of ad sales. For Internet, the figures are 25% and 22%.
    • Other details: 1) Tech firms account for 19% of the S&P 500's market cap - up from 11% 20 years ago, but well below a Dot.com bubble peak of 35%. 2) Web-connected TVs made up nearly 40% of 2013 shipments, up from <10% in 2010. 3) Facebook made up 21% of social media referral traffic in March (per Shareholic), and Twitter just 1%.
    • Tech ETFs: XLK, VGT, TECL, IYW, ROM, TDIV, TECS, IGM, RYT, QTEC, PSCT, FTEC, FXL, REW, MTK, PTF
    • Web/social media ETFs: PNQI, SOCL, FDN
       
    | 6 Comments
  • May 7, 2014, 10:50 AM
    | 15 Comments
  • Apr. 15, 2014, 1:49 PM
    • While broader equity markets are only seeing modest declines, tech stocks aren't so lucky. The Nasdaq-100 (QQQ -0.8%) had its lowest print since October this morning before recovering slightly.
    • Chinese tech stocks (KWEB -4.3%), including 2013 solar high-flyers (TAN -4.2%), are especially hard-hit following a Shanghai selloff triggered by PBOC withdrawals. Other Internet (PNQI -2.3%) and social media (SOCL -2%) stocks aren't faring much better.
    • Will earnings season come to the rescue? Intel and Yahoo report after the bell today, and Google and IBM after the bell tomorrow.
    • Tech ETFs: XLK, VGT, FDN, ROBO, SOXL, SKYY, TECL, USD, SMH, IPK, IYW, ROM, TDIV, SOXS, SOXX, KWT, TECS, XSD, IXN, IGV, FTEC, RYT, IGM, PXN, QTEC, PSCT, FXL, IGN, PSI, SSG, MTK, REW, PXQ, XSW, FONE, PSJ, AAIT, PTF, CQQQ, QQQC
    • Update: Tech stocks rallied in the final hours of trading. The Nasdaq closed up 0.3%.
    | 1 Comment
  • Mar. 26, 2014, 4:04 PM
    • Aided by King's poor debut and general momentum stock weakness, U.S. and Chinese Internet stocks have fallen hard for the second time this week.
    • In addition to King rival Zynga and newly-minted VR headset maker Facebook, Twitter (TWTR -7.1%) is among the leading U.S. decliners. Exactly 3 months after reaching a peak of $74.73, shares have fallen below their post-IPO opening price of $45.10. They remain well above their $26 IPO price.
    • Other U.S. decliners: P -5.2%. Z -6.2%. TRLA -7%. GSVC -4.8%. SVVC -4.1%.
    • Many Chinese Internet stocks have also been hit hard. Sungy Mobile (GOMO -23.2%), which posted a Q4 beat and in-line guidance yesterday afternoon, is the biggest decliner. Others: QIHU -8%. WUBA -9.5%. MOBI -10.6%. QUNR -7.8%. NQ -7%. YOD -7.6%. WBAI -7.5%. SOHU -7%. ATHM -6.5%. SFUN -6.3%.
    • Internet/social media ETFs: FDN, PNQI, SOCL
    | 15 Comments
  • Jan. 27, 2014, 12:44 PM
    • U.S. and Chinese Internet stocks are adding to last week's big losses, as investors continue taking profits following major 2013 gains. Chinese stocks were hit last week by an emerging markets selloff, weak PMI data, and an SEC ban (pending appeal) on audits from the Chinese units of big-4 U.S. accounting firms.
    • Twitter (TWTR -8.2%), the company bears are most likely to point to when arguing a new Internet stock bubble has formed, is headlining the U.S. decliners. Shares are still up 25% from their post-IPO opening trade of $45.10.
    • Other U.S. decliners: GOOG -3.1%. FB -2.9%. YELP -5.3%. Z -5.1%. LNKD -4.3%. P -3.2%. ANGI -4.1%. ZNGA -3.1%. GRPN -3.1%.
    • Chinese decliners: BIDU -2.9%. CCIH -19%. BITA -14.6%. CTRP -7.4%. NQ -7.9%. LONG -9.4%. DANG -7.3%. SOHU -4.3%. GOMO -5.8%. SINA -3.3%. QUNR -7.7%. SFUN -5.4%. WBAI -7.5%. RENN -5%.
    • Internet/social media ETFs: FDN, PNQI, SOCL
    | 16 Comments
  • Nov. 7, 2013, 11:48 AM
    • Even as Twitter blasts off to a $25B valuation following its much-hyped IPO, U.S. and foreign Internet stocks are giving back some more of the massive 2013 gains that have led many names to trade at steep multiples.
    • One sign investors in this space are in a profit-taking mood: Zillow (Z -4.3%) and YY both sold off yesterday in spite of delivering Q3 beats (I, II) and above-consensus guidance; Zillow is adding to its losses today. Likewise, SouFun (SFUN -5.4%) has turned negative after providing a Q3 beat and strong guidance.
    • Notable U.S. decliners: FB -2.4%. LNKD -2.8%. GRPN -4.7% (reports after the close). ZNGA -2.7%. P -3.8%. TRLA -5.4%.
    • Notable foreign decliners: BIDU -2.4%. QIHU -6.7%. SINA -5% (generally viewed as the Chinese Twitter). DANG -6.2%. VIPS -7.7%. RENN -4.2%. AMAP -4.7%. CTRP -5.7%. YOKU -5.6%. RENN -4.2%. YNDX -5.1%. MELI -2.4% (plunged yesterday thanks to a Q3 miss). SIFY -2.6%.
    • Internet/social media ETFs: FDN, PNQI, SOCL
    | 16 Comments
  • Jun. 11, 2013, 8:49 AM
    On June 5th, UBS completed its shutdown of 7 ETNs - 5 of which were focused on the IT space. The ETNs had struggled since launch to gain assets. The affected notes: LSKY, EIPO, EIPL, SSDD, SSDL, PTD and BLND. The closure is interesting in that all the affected ETNs except BLND had double-digit positive returns over the recent trailing twelve months.
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FDN Description
The First Trust Dow Jones Internet IndexSM Fund is an exchange-traded index fund. The investment objective of the fund is to replicate as closely as possible, before fees and expenses, the price and yield of the Dow Jones Internet IndexSM. For a stock to be included in the selection universe for the index, a company must generate at least 50% of its annual sales/revenues from the Internet.
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Sector: Technology
Country: United States
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