FAI - ETF AI Analysis
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First Trust Bloomberg Artificial Intelligence ETF (FAI)
Rating:66Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the past few months, indicating positive momentum in its strategy.
Leading AI and Tech Holdings
Many of the largest positions, such as major chipmakers and platform companies, have delivered strong results, helping drive the fund’s returns.
Focused AI Theme With Some Global Reach
The fund is heavily invested in U.S. technology and communication companies while also including select international leaders, giving targeted AI exposure with a bit of geographic diversification.
Negative Factors
High Sector Concentration
With most assets in technology and related sectors, the ETF is vulnerable to downturns in the tech industry.
Notable Underperformers in Top Holdings
Some large positions, including major software and enterprise names, have shown weak recent performance, which can drag on overall returns.
Above-Average Expense Ratio
The fund’s fee is relatively high for an ETF, which can slowly reduce investors’ net returns over time.
FAI vs. SPDR S&P 500 ETF (SPY)
AUM89.26M
RegionGlobal
Expense Ratio0.65%
Beta1.58
IssuerFirst Trust
Inception DateNov 20, 2024
Dividend YieldN/A
Asset ClassEquity
Index TrackedBloomberg Global Artificial Intelligence Select Index (CAD)
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume35,429
30 Day Avg. Volume27,243
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
62.30Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering48
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FAI Summary
The First Trust Bloomberg Artificial Intelligence ETF (FAI) is a fund that follows the Bloomberg Global Artificial Intelligence Select Index. It focuses on companies leading in artificial intelligence and robotics, mainly in the U.S. tech sector. Well-known holdings include Amazon and Microsoft, along with major chip makers like Nvidia. Someone might invest in FAI to seek long-term growth from the rising use of AI and automation across many industries, while getting a basket of different AI-related stocks instead of picking just one. A key risk is that it is heavily concentrated in technology, so its price can swing up and down more than the overall market.
How much will it cost me?The First Trust Bloomberg Artificial Intelligence ETF (FAI) has an expense ratio of 0.65%, which means you’ll pay $6.50 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a specialized sector like AI and robotics, which requires more research and expertise.
What would affect this ETF?The First Trust Bloomberg Artificial Intelligence ETF (FAI) could benefit from the growing adoption of AI and robotics across industries, as well as increased investment in technology by companies like Microsoft, Nvidia, and Alphabet. However, potential risks include regulatory scrutiny on AI development, economic slowdowns that may reduce corporate spending on innovation, and volatility in the technology sector due to interest rate changes or geopolitical tensions. Its global exposure and focus on leading tech firms provide both growth opportunities and sensitivity to broader market trends.
FAI Top 10 Holdings
FAI is riding the AI wave with a heavy tilt toward U.S. tech and chip powerhouses. Micron and AMD have been the real engines lately, surging on red-hot demand for AI memory and processors, while ASML quietly adds strength from Europe’s semiconductor backbone. Alphabet and Amazon are also rising, giving the fund a steady boost from cloud and digital ads. On the flip side, Broadcom and Microsoft have been more mixed to slightly lagging, occasionally tapping the brakes on performance in this otherwise high-octane AI portfolio.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Micron | 7.71% | $6.85M | $1.11T | 807.87% | 79 Outperform | |
| Alphabet Class A | 7.00% | $6.22M | $4.35T | 108.94% | 85 Outperform | |
| Broadcom | 6.99% | $6.21M | $1.82T | 56.26% | 76 Outperform | |
| Advanced Micro Devices | 6.77% | $6.02M | $834.17B | 332.99% | 73 Outperform | |
| Nvidia | 6.66% | $5.92M | $4.97T | 46.83% | 76 Outperform | |
| Amazon | 6.54% | $5.82M | $2.57T | 13.84% | 71 Outperform | |
| ― | 6.33% | $5.63M | ― | ― | ― | |
| Microsoft | 6.02% | $5.35M | $2.90T | -16.57% | 79 Outperform | |
| Marvell | 4.35% | $3.87M | $244.68B | 338.62% | 76 Outperform | |
| ASML Holding NV | 4.04% | $3.59M | €622.48B | 142.88% | 76 Outperform |
FAI Technical Analysis
Positive
―
Price Trends
48.46
Positive
43.97
Positive
42.33
Positive
Market Momentum
1.31
Positive
59.70
Neutral
39.63
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FAI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 53.24, equal to the 50-day MA of 48.46, and equal to the 200-day MA of 42.33, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAI.
FAI Peer Comparison
Comparison Results
Performance Comparison
FAI
First Trust Bloomberg Artificial Intelligence ETF
54.92
21.17
62.73%
AIVC
Amplify Bloomberg AI Value Chain ETF
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IBOT
Vaneck Robotics ETF
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IQM
Franklin Intelligent Machines ETF
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PRNT
3D Printing ETF
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TEKY
Lazard Next Gen Technologies ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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