With the lofty valuations on the aforementioned Internet names and others, talk has increased that Internet stocks are on the cusp of another 1999-2000-style bubble. To be sure, investors have not been shy about pouring cash into FDN and SOCL this year as the two have seen dramatic asset growth on a percentage basis.
FDN has taken in almost $755 million of its nearly $1.7 billion in AUM this year while $92.4 million, or 87%, of SOCL’s assets have come into the fund this year.
The good news is talk of another Internet bubble may be unfounded. The NASDAQ 100 traded with a P/E of 150 in late 1999, more than seven times where it trades today. [The Changing Face of QQQ]
First Trust Dow Jones Internet Index Fund
