FDN: More Realistic Valuations, Growth Prospects Trimmed

Vasily Zyryanov
2.13K Followers

Summary

  • FDN invests in internet commerce and internet services companies.
  • In December 2021, I warned that FDN is prone to decline as the growth premia were about to become thinner.
  • Since then, FDN has delivered a dismal return of (35.7)%, underperforming IVV.
  • The article provides an in-depth look at the valuation, growth, and quality characteristics of the portfolio, highlighting some improvements, as well as the remaining risks.

Financial Technologies - binary code background with dollar banknotes

Viorika

This year, the global equity markets have been in dire straits. Well, some more than others.

The 2010s were at times called a 'value winter' or a 'value drought,' opinions vary. Then the tables turned. 2022 to date was more of a 'growth drought,' to tech investors' chagrin. It

This article was written by

2.13K Followers
Vasily 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.

Recommended For You

About FDN ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on FDN

Related Stocks

SymbolLast Price% Chg
FDN
--