Investors looking for stellar performance among industry exchange-traded funds this year will find plenty in the realm of internet ETFs. Year-to-date, four of the top 10 non-leveraged ETFs are internet ETFs.
Underscoring the strength in internet stocks is this nugget: the First Trust DJ Internet Index Fund (ETF) (NYSEARCA:FDN), the largest U.S. internet ETF, is higher by 26% year-to-date and it does not rank among the top 10 industry or sector funds.
That despite FDN allocating about a third of its weight to the FANG quartet of Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Google parent Alphabet Inc (NASDAQ:GOOG NASDAQ:GOOGL).
The status of the First Trust Dow Jones Internet ETF as a premier, cost-effective avenue for FANG and internet stock exposure has prompted investors to pour more than $177 million into the ETF this year. That brings FDN’s assets under management to north of $4.6 billion, making it one of the largest technology ETFs on the market.
While FDN has brand recognition among internet ETFs, other funds offer different, though still enticing ways of tapping the boom in internet stocks. Here are three alternatives.