ETF Trends
ETF Trends

The long-awaited smartphone exchange traded fund (ETF) is finally here.

First Trust NASDAQ CEA Smartphone Index Fund (NASDAQ: FONE) began trading today, and it’s just in time to capture a growing population of smartphone users.

FONE tracks the NASDAQ OMX CEA Smartphone Index, which has 72 stocks in it. It includes companies such as Apple (NASDAQ: AAPL)  and Google (NASDAQ: GOOG), but they are not in the top 10 holdings. That bodes very well for how this index was constructed, and it appears to be broadly diversified, we told CNN Money today. It’s not heavily allocated to just a few stocks and plays all sides of the booming smartphone market, which is expected to dust the PC market by next year.

The United States makes up roughly 45% of the fund’s assets, but Japan and Canada also get representation.

FONE comes with a 0.70% expense ratio, and the index is a tech-weighted one. The overwhelming popularity of wireless phones is evident but critics are wary of this ETF up against other technology related funds already trading. Will it capture interest? Wait and see.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.