FDN vs. SKYY

Last updated Jun 24, 2026

FDN (First Trust Dow Jones Internet Index) and SKYY (First Trust ISE Cloud Computing Index Fund) are both exchange-traded funds - FDN is a Large Cap Growth Equities fund tracking the Dow Jones Internet Index, while SKYY is a Technology Equities fund tracking the ISE Cloud Computing Index. Both are passively managed. Over the past 10 years, FDN returned 13.85%/yr vs 16.18%/yr for SKYY. Their correlation of 0.91 suggests significant overlap in exposure. FDN charges 0.52%/yr vs 0.60%/yr for SKYY.

Performance

FDN vs. SKYY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Internet Index (FDN) and First Trust ISE Cloud Computing Index Fund (SKYY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDN achieves a -3.99% return, which is significantly lower than SKYY's -0.55% return. Over the past 10 years, FDN has underperformed SKYY with an annualized return of 13.85%, while SKYY has yielded a comparatively higher 16.18% annualized return.

FDN

• 1D: -0.49%
• 1M: -5.63%
• YTD: -3.99%
• 6M: -4.90%
• 1Y: 0.72%
• 3Y*: 17.44%
• 5Y*: 1.19%
• 10Y*: 13.85%

SKYY

• 1D: -0.14%
• 1M: -2.76%
• YTD: -0.55%
• 6M: -2.25%
• 1Y: 11.01%
• 3Y*: 20.55%
• 5Y*: 4.29%
• 10Y*: 16.18%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FDN vs. SKYY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDN First Trust Dow Jones Internet Index	-3.99%	10.70%	30.35%	51.48%	-45.54%	6.55%	52.55%	19.25%	6.17%	37.64%
SKYY First Trust ISE Cloud Computing Index Fund	-0.55%	9.20%	35.87%	52.18%	-44.68%	10.62%	57.77%	25.25%	6.01%	33.47%

Correlation

The correlation between FDN and SKYY is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jul 6, 2011	0.91

The correlation between FDN and SKYY has been stable across timeframes, ranging from 0.83 to 0.92 - a consistent structural relationship.

FDN vs. SKYY - Sectors Allocation Comparison

Sectors	FDN	SKYY
Technology	43.1%	88.9%
Communication Services	27.0%	4.8%
Consumer Cyclical	25.5%	1.6%
Financial Services	2.0%	-
Industrials	1.3%	1.6%
Healthcare	1.2%	1.6%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FDN vs. SKYY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FDN

FDN Risk / Return Rank: 9
FDN Sharpe Ratio Rank: 9
FDN Sortino Ratio Rank: 9
FDN Omega Ratio Rank: 9
FDN Calmar Ratio Rank: 9
FDN Martin Ratio Rank: 9

SKYY

SKYY Risk / Return Rank: 14
SKYY Sharpe Ratio Rank: 14
SKYY Sortino Ratio Rank: 15
SKYY Omega Ratio Rank: 15
SKYY Calmar Ratio Rank: 13
SKYY Martin Ratio Rank: 13

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FDN vs. SKYY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Internet Index (FDN) and First Trust ISE Cloud Computing Index Fund (SKYY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FDN	SKYY	Difference
Sharpe ratio: Return per unit of total volatility	0.04	0.39	-0.35
Sortino ratio: Return per unit of downside risk	0.18	0.75	-0.56
Omega ratio: Gain probability vs. loss probability	1.02	1.09	-0.07
Calmar ratio: Return relative to maximum drawdown	0.03	0.40	-0.37
Martin ratio: Return relative to average drawdown	0.09	0.88	-0.79

FDN vs. SKYY - Sharpe Ratio Comparison

The current FDN Sharpe Ratio is 0.04, which is lower than the SKYY Sharpe Ratio of 0.39. The chart below compares the historical Sharpe Ratios of FDN and SKYY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FDN vs. SKYY - Drawdown Comparison

The maximum FDN drawdown since its inception was -61.55%, which is greater than SKYY's maximum drawdown of -53.20%. Use the drawdown chart below to compare losses from any high point for FDN and SKYY.

Drawdown Indicators

	FDN	SKYY	Difference
Max Drawdown Largest peak-to-trough decline	-61.55%	-53.20%	-8.35%
Max Drawdown (1Y) Largest decline over 1 year	-21.31%	-27.39%	+6.08%
Max Drawdown (3Y) Largest decline over 3 years	-24.98%	-31.80%	+6.82%
Max Drawdown (5Y) Largest decline over 5 years	-53.97%	-53.20%	-0.77%
Max Drawdown (10Y) Largest decline over 10 years	-53.97%	-53.20%	-0.77%
Current Drawdown Current decline from peak	-10.81%	-16.63%	+5.82%
Average Drawdown Average peak-to-trough decline	-11.81%	-10.90%	-0.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.54%	12.55%	-4.01%

Volatility

FDN vs. SKYY - Volatility Comparison

The current volatility for First Trust Dow Jones Internet Index (FDN) is 7.48%, while First Trust ISE Cloud Computing Index Fund (SKYY) has a volatility of 13.51%. This indicates that FDN experiences smaller price fluctuations and is considered to be less risky than SKYY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDN	SKYY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.48%	13.51%	-6.03%
Volatility (6M) Calculated over the trailing 6-month period	15.51%	23.95%	-8.44%
Volatility (1Y) Calculated over the trailing 1-year period	19.77%	28.58%	-8.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.36%	30.73%	-3.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.63%	26.89%	-1.26%

FDN vs. SKYY - Expense Ratio Comparison

FDN has a 0.52% expense ratio, which is lower than SKYY's 0.60% expense ratio.

Dividends

FDN vs. SKYY - Dividend Comparison

Neither FDN nor SKYY has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDN First Trust Dow Jones Internet Index	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SKYY First Trust ISE Cloud Computing Index Fund	0.00%	0.00%	0.00%	0.00%	0.23%	0.78%	0.17%	0.54%	0.37%	0.27%	0.35%	0.41%

Frequently Asked Questions

Can I hold both FDN and SKYY in my portfolio?

FDN and SKYY have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDN or SKYY?

SKYY has higher volatility (13.51%) compared to FDN (7.48%). In terms of maximum drawdown, FDN dropped -61.55% vs SKYY's -53.20%.

Which ETF is better, FDN or SKYY?

On 10-year performance, SKYY leads with 16.18% vs 13.85% for FDN. On fees, FDN is cheaper at 0.52% per year. On volatility, FDN has been the lower-risk option at 7.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDN or SKYY?

Over the 10-year period, SKYY has performed better with a 16.18% return vs 13.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDN or SKYY?

FDN is cheaper with a 0.52% expense ratio, compared with 0.60% for SKYY.

Which ETF pays a higher dividend yield, FDN or SKYY?

FDN and SKYY have nearly identical dividend yields, around 0.00%.

What is the main difference between FDN and SKYY?

FDN is categorized as Large Cap Growth Equities, while SKYY is Technology Equities. FDN tracks Dow Jones Internet Index, while SKYY tracks ISE Cloud Computing Index. Their fees differ too: 0.52% for FDN and 0.60% for SKYY.

Which has better risk-adjusted returns?

SKYY currently has the higher Sharpe Ratio (0.39 vs 0.04), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.