For investors looking for momentum, First Trust Dow Jones Internet ETF FDN is likely a suitable pick. The fund just hit a 52-week high and is up 116.5% from its 52-week low price of $105/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
FDN in Focus
This ETF seeks investment results that correspond generally to the price and yield of the Dow Jones Internet Composite Index. It has an AUM of $10.98 billion and charges 52 basis points (bps) in annual fees.
Why the Move?
Due to the coronavirus outbreak, consumers are opting for online retailers to purchase food items and other goods, and are resorting to video streaming services and other modes of in-house entertainment. In line with the rising online shopping trend, customers are resorting to digital payments to clear their bills, while merchants and utility providers are advocating the same. Also, the pandemic has resulted in some changes in the lifestyle and preferences of people. Most of the surveys have found that people are opting for online shopping over visiting brick-and-mortar stores for their purchases of essential food items and supplies. This is making funds like FDN attractive investment options.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 57.27, which gives cues of further rally.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust Dow Jones Internet ETF (FDN): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report