Introducing First Trust Dow Jones International Internet UCITS ETF (“FDNI”)

The internet has revolutionised our lives, it is the foundation on which almost-all modern-day technology and innovation is built, and it is promising to reach further than ever before. The ‘Internet of Things’ (IoT), is the concept of connecting any device to the internet, supporting a huge network of connected things and people (think self-driving cars, wearables, smart TV, smart homes etc.) The IoT has huge potential to unlock a new era of economic growth and innovation. For investors to derive value from this potential, access to companies harnessing the boundless capacity of this technology, is key to success.

The First Trust Dow Jones International Internet UCITS ETF (FDNI) gives investors cost-effective exposure to this potential, in a single portfolio. Through exposure to 40 of the largest and most actively traded international stocks in internet history. Much focus has been given to the US tech companies known as the ‘FANGs’. But there are many other internet giants worldwide at the forefront of this new era of internet technology. In China the ‘BATs’ (Baidu, Alibaba, Tencent) have a vast global presence. Baidu boasts the world’s largest internet user population, Alibaba’s digital economy accounted for 18% of China’s retail sales last year.^[1] Tencent, the largest communication and social platform in China, is combining organic growth with strategic global investments putting it on the cusp of a trillion-dollar valuation.

The Fund is based on the Dow Jones International Internet Index which provides exposure to some of the world’s largest international companies. The index is a modified market capitalisation-weighted index, focusing on 40 of the largest and most actively traded non-U.S. companies in the Internet industry that are directly exposed to the application of internet technology and the compelling ‘IoT’ theme.

[1] As at 30^th June 2020. Alibaba Investor Presentation, September 2020.