FDN vs HOMZ

FDNCFirst Trust Dow Jones Internet Index Fund

HOMZBHoya Capital Housing ETF

In short

FDN The original internet ETF. Since 2006 it has held about 40 US companies that earn at least half their revenue from the internet, split between commerce and services: pure-play by construction, concentrated by design, and priced above the thematic average.

HOMZ Most housing ETFs pick a lane: homebuilders or apartment REITs. HOMZ buys the whole chain, landlords, builders, home-improvement retailers and housing finance and tech names, sizing each segment by its share of GDP.

Stated mandate

FDN The Fund seeks to track, before fees and expenses, the price and yield performance of the Dow Jones Internet Composite Index. It normally invests at least 90% of net assets in securities comprising that index.

HOMZ The Fund seeks to track the performance of the Hoya Capital Housing 100TM Index before fees and expenses.

Why people hold it

• FDN Launched in 2006, it is the elder statesman of internet funds: nearly two decades of continuous operation and a multi-billion-dollar asset base.
• Genuinely pure-play. A company must earn at least 50% of its sales from the internet to enter the index, which holds roughly 40 of the largest, most actively traded names.spindices.com
• No stock-picking. It replicates the Dow Jones Internet Composite Index, normally keeping at least 90% of net assets in the index's own constituents.ftportfolios.com
• Sits in the upper half of the US thematic funds we review, with easy day-to-day trading a big part of why.

• HOMZ Four housing segments in one ticker: rental operators, builders, home improvement and furnishings, and housing finance, tech and services, each sized by its contribution to GDP rather than market cap.sec.gov
• The 2019 original: launched as the first ETF offering diversified exposure across the entire US housing sector, and still tracking the index its adviser built.prnewswire.com
• 0.30% a year, below the 0.45% median for its index-tracking peers, on an index reconstituted and rebalanced on a set schedule each June and December.sec.govsec.gov 2
• Distributions arrive monthly rather than quarterly, a cadence more common among bond funds than equity sector funds.

Worth knowing

• FDN At 0.49% a year it runs above the typical US thematic fund (median 0.35%), and cohort leaders like TECB (0.30%) and LRND (0.14%) charge less for tech-flavored exposure.
• Roughly 40 non-diversified holdings: the biggest internet names drive most of the ride, in both directions.ftportfolios.com
• Built for price exposure, not income. Payouts have been absent recently, so cash flow is not the point here.

• HOMZ A small, thinly traded fund. Spreads can run wider than on mega-cap index trackers, and small funds carry more risk of being closed or repositioned.
• One industry, roughly 100 stocks. Housing moves with mortgage rates and construction cycles, so this can drift well apart from a broad market fund.
• Cheap for a themed index fund, still a multiple of plain broad-market trackers: SCHK charges 0.03% and VT 0.06%.

Full FDN profile⁠

Full HOMZ profile⁠