ETF Education Report: First Trust Dow Jones International Internet ETF (FDNI)

The First Trust Dow Jones International Internet ETF (FDNI) is designed to invest in internet-based companies outside of the United States. Based on recent data, this ETF has experienced a significant share-price decline over the last year and carries a severe erosion-risk flag.

What this ETF is trying to do

FDNI focuses on the international internet sector. It holds a variety of companies that operate in the digital space globally. As of October 12, 2026, the fund holds 44 different assets.

Top Holdings (Partial List):

• Shopify Inc: 11.48%

• Alibaba Group Holding Ltd: 10.32%

• Tencent Holdings Ltd: 10.27%

• PDD Holdings Inc: 5.74%

• Spotify Technology SA: 5.23%

These holdings can change over time.

What the numbers show

The share price of FDNI is currently $26.64. To understand how the price has moved, we can look at the price return (which measures only the change in share price) and the total return (which includes distributions).

• Year-to-Date (YTD): The price return and total return are both -21.44%.

• One Year: The price return is -31.16%, while the total return is -30.40%.

• Three Year: The price return is 27.85%, and the total return is 30.64%.

• Five Year: The total return is -33.28%.

For a simple example, if an investor had put $10,000 into the ETF roughly one year ago (when the estimated price was $38.70), the price-only decline of 31.16% would mean the value of those shares alone would be approximately $6,884 today.

Income and Distribution Explanation

FDNI provides a distribution yield of 1.42%. Over the last 12 months, it has made only one payout, and its distribution frequency is described as irregular or less frequent.

It is important for beginners to remember that a distribution yield is not the same as a total return. A fund can pay out cash while its share price falls. In this case, the total return for the last year (-30.40%) was slightly better than the price return (-31.16%) because of these distributions.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the ETF has a severe erosion-risk flag. This was triggered because the split-adjusted price trend and an erosion score of 30 indicate "significant price erosion." This means the market price has dropped substantially over a period of time.

Pros

• Diversification: Provides exposure to large international internet companies like Shopify and Tencent.

• Longer-Term Growth: The three-year total return shows a positive gain of 30.64%.

Cons

• Recent Performance: Significant share-price declines over the last year and year-to-date.

• Low Income: An income rating grade of "F" and irregular payouts.

• High Risk: A severe erosion-risk flag based on price trends.

Beginner Takeaway

FDNI offers a way to invest in global internet companies, but it has been very volatile recently. While it showed growth over three years, the last year has seen a steep price drop. Investors should note that the low distribution yield does not protect the investment from a falling share price.