An index-tracking ETF that measures the
performance of the world’s largest companies engaged in the
Internet.
First Trust Advisors L.P. (“First Trust”), a leading
exchange-traded fund (“ETF”) provider and asset manager, announced
that it launched a new ETF, the First Trust Dow Jones International
Internet ETF (NASDAQ: FDNI or the “fund”), which began trading on
November 6, 2018. The fund seeks investment results that correspond
generally to the price and yield (before the fund’s fees and
expenses) of an equity index called the Dow Jones International
Internet Index (the “index”). The index is a float-adjusted market
capitalization weighted index designed to measure the performance
of the 40 largest and most actively traded non-U.S. international
companies that generate a majority of their sales and revenue from
internet-based activities.
The Internet is reaching further than ever before to connect our
world, businesses and personal lives through what is known as the
Internet of Things (IoT), or the billions of connected physical
devices. The fund provides an easy way to gain exposure to
international companies that may benefit from rapid technological
changes as more people and devices across the globe connect to the
Internet. “The internet continues to be one of the most disruptive
forces in the global economy, fueling growth by increasing
efficiency in many different industries. Just as the First Trust
Dow Jones Internet Index Fund (FDN) provides exposure to US
ecommerce and internet services stocks, this new ETF does so for
international developed and emerging markets, where we see
potential for robust revenue growth,” said Ryan Issakainen, CFA,
Senior Vice President, Exchange-Traded Fund Strategist at First
Trust.
For more information about First Trust, please contact Ryan
Issakainen at (630) 765-8689 or RIssakainen@FTAdvisors.com.
About First Trust
First Trust is a federally registered investment advisor and
serves as the fund’s investment advisor. First Trust and its
affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered
broker-dealer, are privately held companies that provide a variety
of investment services. First Trust has collective assets under
management or supervision of approximately $134 billion as of
September 30, 2018 through unit investment trusts, exchange-traded
funds, closed-end funds, mutual funds and separate managed
accounts. First Trust is the supervisor of the First Trust unit
investment trusts, while FTP is the sponsor. FTP is also a
distributor of mutual fund shares and exchange-traded fund creation
units. First Trust and FTP are based in Wheaton, Illinois. For more
information, visit http://www.ftportfolios.com.
You should consider the fund’s investment objectives, risks,
and charges and expenses carefully before investing. Contact First
Trust Portfolios L.P. at 1-800-621-1675 or visit
www.ftportfolios.com to obtain a prospectus or summary
prospectus which contains this and other information about the
fund. The prospectus or summary prospectus should be read carefully
before investing.
ETF Characteristics
The fund lists and principally trades its shares on the The
Nasdaq Stock Market LLC.
The fund’s return may not match the return of the Dow Jones
International Internet Index. Securities held by the fund will
generally not be bought or sold in response to market
fluctuations.
Investors buying or selling fund shares on the secondary market
may incur customary brokerage commissions. Market prices may differ
to some degree from the net asset value of the shares. Investors
who sell fund shares may receive less than the share’s net asset
value. Shares may be sold throughout the day on the exchange
through any brokerage account. However, unlike mutual funds, shares
may only be redeemed directly from the fund by authorized
participants, in very large creation/redemption units. If the
fund’s authorized participants are unable to proceed with
creation/redemption orders and no other authorized participant is
able to step forward to create or redeem, fund shares may trade at
a discount to the fund’s net asset value and possibly face
delisting.
Risk Considerations
The fund’s shares will change in value, and you could lose money
by investing in the fund. One of the principal risks of investing
in the fund is market risk. Market risk is the risk that a
particular stock owned by the fund, fund shares or stocks in
general may fall in value. There can be no assurance that the
fund’s investment objective will be achieved.
The fund is not actively managed and generally will not attempt
to take defensive positions in declining markets.
The fund may invest in securities issued by companies
concentrated in a particular industry, sector, or country, which
involves additional risks, including limited diversification. The
fund may invest in small capitalization and mid capitalization
companies. Such companies may experience greater price volatility
than larger, more established companies.
An investment in a fund containing securities of non-U.S.
issuers is subject to additional risks, including currency
fluctuations, political risks, withholding, the lack of adequate
financial information, and exchange control restrictions impacting
non-U.S. issuers. These risks may be heightened for securities of
companies located in, or with significant operations in, emerging
market countries. The fund may invest in depositary receipts which
may be less liquid than the underlying shares in their primary
trading market.
As the use of Internet technology has become more prevalent in
the course of business, the fund has become more susceptible to
potential operational risks through breaches in cybersecurity.
Changes in currency exchange rates and the relative value of
non-U.S. currencies will affect the value of the fund’s investments
and the value of fund shares.
The fund currently has fewer assets than larger funds, and like
other relatively new funds, large inflows and outflows may impact
the fund’s market exposure for limited periods of time.
The fund is classified as “non-diversified” and may invest a
relatively high percentage of its assets in a limited number of
issuers. As a result, the fund may be more susceptible to a single
adverse economic or regulatory occurrence affecting one or more of
these issuers, experience increased volatility and be highly
concentrated in certain issuers.
First Trust Advisors L.P. is the adviser to the fund. First
Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P.,
the fund’s distributor.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA
and the Internal Revenue Code. First Trust has no knowledge of and
has not been provided any information regarding any investor.
Financial advisors must determine whether particular investments
are appropriate for their clients. First Trust believes the
financial advisor is a fiduciary, is capable of evaluating
investment risks independently and is responsible for exercising
independent judgment with respect to its retirement plan
clients.
The Dow Jones International Internet Index and the Dow Jones
Internet Composite Index℠ are products of S&P Dow Jones Indices
LLC (“SPDJI”), and have been licensed for use by First Trust. Dow
Jones®, Dow Jones International Internet Index and Dow Jones
Internet Composite Index℠ are trademarks of Dow Jones Trademark
Holdings LLC (“Dow Jones”) and have been licensed to SPDJI and have
been sublicensed for use for certain purposes by First Trust on
behalf of the funds. The First Trust Dow Jones International
Internet ETF and the First Trust Dow Jones Internet Index Fund are
not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones or
their respective affiliates and none of them makes any
representation regarding the advisability of investing in such
product.
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version on businesswire.com: https://www.businesswire.com/news/home/20181107005937/en/
Ryan IssakainenFirst Trust(630)
765-8689RIssakainen@FTAdvisors.com
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