Buy the ETF that holds Google, Netflix, Amazon, Salesforce

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One ETF to rule them all.

First Trust DJ Internet Index Fund ETF (FDN) has been around since 2006 and is up 200% since then. The ETF now holds some of our favorite stocks that could do well in 2015 including Facebook (FB), Amazon Inc (AMZN), Google (GOOGL), Netflix (NFLX), (CRM), Priceline (PCLN), and eBay Inc (EBAY).

Rather than risk it on some of these individual names such as Netflix (NFLX) after it's huge 20% gain last week go with the FDN. You get the safety of being in a basket that includes other speculative names that are loved for their services but not so much as a stock, i.e. Amazon, Google, eBay.  

fdnWhat I like about this ETF is it contains some hot names and other stocks that have done nothing in the past 12 months such as Google.  The FDN closed at $61.45 on Friday.  Per share that's a good alternative for those who can't pony up the $1,037 for a single share of Priceline. You can own this basket of great tech names for a fraction of the cost.

Here's more about the FDN:

The First Trust Dow Jones Internet Index Fund (FDN) is an exchange-traded index fund. 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 Internet Composite IndexSM.
There can be no assurance that the Fund's investment objectives will be achieved.
  • For a stock to be included in the selection universe for the index, a company must generate at least 50% of its annual sales/revenues from the Internet.
  • To be eligible for the Dow Jones Internet Composite IndexSM, a stock issued through an initial public offering must have a minimum of three months’ trading history. Spinoffs will require this history only if the parent stock has itself been trading for less than three months. An index-eligible stock also must have:
    • A three-month average market capitalization of at least $100 million;
    • A three-month average closing price above $10 if it is not currently in the index;
    • Sufficient trading activity to pass liquidity tests.
  • Index components are selected from the eligible universe using a combination of three-month average float-adjusted market capitalization and three-month average share volume with a goal of capturing 80% of the float-adjusted selection universe.
  • The index composition is reviewed each quarter. Rebalancing takes effect after the close of trading on the third Friday of March, June, September and December.


Top Holdings (as of 1/23/2015)
Holding Percent
Facebook, Inc. (Class A) 8.30%, Inc. 7.24%
eBay Inc. 5.58%
Google Inc. (Class A) 5.00%
Google Inc. (Class C) 4.98%
The Priceline Group Inc. 4.91%
Yahoo! Inc. 4.62%
Netflix Inc. 4.37%, Inc. 4.34%
LinkedIn Corporation (Class A) 3.79%