Dion's Weekly ETF Blog Wrap

Like Tech? Try FDN

Published 9/2/2010 2:37 PM EDT

Having recently read about and marveled at Apple's (AAPL) new product line, Amazon's (AMZN) new Kindle and an upcoming "smartphone" ETF from First Trust, I've been thinking a lot about digital devices and the world they open up to consumers.

Whether it's though an iPhone, iPad or BlackBerry, consumers are charging up and tuning in. There's a lot of debate out there about which digital device is superior, and I'm not going to pretend I know the answer. (In 2005, I would have said Palm (PALM), which shows you how much I know.)

I believe the trend is all about having the Internet at your fingertips. If you bet on Apple's iPhone or Research In Motion's(RIMM) BlackBerry, you could be betting on the wrong device. I believe the safer investment is in the continued growth of the Internet itself and the companies that thrive in its territory.

I've mentioned the First Trust Dow Jones Internet ETF(FDN) before, and even listed five reasons to own the fund. As I keep reading about tech, however, my conviction is just growing stronger. I still think the firms in this ETF have tremendous potential. Google (GOOG), Priceline.com (PCLN), Amazon, eBay (EBAY) and Salesforce.com (CRM) all headline this well-balanced fund that tracks companies making money on the Internet.

Here's the call: If you already own FDN, I wouldn't sell yet (despite the run today). If you haven't discovered this unique ETF yet, I'd wait for a pullback to buy and make the investment with your long-term portfolio in mind.

People call me all the time looking for unique ETF investment ideas -- FDN is always at the top of my list.

At the time of publication, Dion Money Management was long FDN.

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