FAI - ETF AI Analysis
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First Trust Bloomberg Artificial Intelligence ETF (FAI)
Rating:68Neutral
Price Target:―
Positive Factors
Leading AI and Tech Giants at the Top
The fund’s largest positions include well-known technology and AI leaders, which have generally shown strong long-term business momentum.
Focused AI Theme with Some Diversification
Holdings are spread across several major tech and communication companies, giving exposure to different parts of the AI ecosystem rather than a single niche.
Global Exposure Beyond the U.S.
While mostly U.S.-based, the ETF also includes key international AI players, adding a bit of geographic diversification.
Negative Factors
Recent Weak Performance
The ETF has recently delivered slightly negative returns over the past month, three months, and year to date, showing some short-term weakness.
High Concentration in a Few Tech Stocks
A large share of the portfolio is tied up in a small number of big technology names, which increases the impact if any of them struggle.
Relatively High Expense Ratio
The fund charges a higher fee than many broad-market ETFs, which can eat into returns over time, especially if performance remains modest.
FAI vs. SPDR S&P 500 ETF (SPY)
AUM37.73M
RegionGlobal
Expense Ratio0.65%
Beta1.46
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. Volume15,619
30 Day Avg. Volume9,356
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
51.72Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering47
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. Big names in the fund include Alphabet (Google) and Amazon, along with other major tech firms like Nvidia and Microsoft. Someone might invest in FAI to seek long-term growth from the rising use of AI and automation across many industries, while getting diversification across several top tech companies. A key risk is that it is heavily concentrated in technology stocks, so its price can swing a lot with the tech sector.
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 but lately its biggest stars have been a bit out of sync. Heavyweights like Nvidia, Microsoft, Alphabet, and Amazon dominate the lineup, so their recent soft or mixed trading has put a lid on returns, even as their long-term AI stories stay compelling. On the brighter side, Micron and ASML have been rising, helping to offset some of that Big Tech fatigue. With a clear tilt toward U.S. mega-cap tech and global chip makers, this ETF is very much a bet on the AI and semiconductor engine of the market.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 8.13% | $2.78M | $4.27T | 59.16% | 76 Outperform | |
| Amazon | 8.07% | $2.76M | $2.26T | 7.43% | 71 Outperform | |
| Alphabet Class A | 7.98% | $2.73M | $3.58T | 89.37% | 85 Outperform | |
| Broadcom | 7.93% | $2.71M | $1.48T | 82.17% | 76 Outperform | |
| Microsoft | 6.92% | $2.37M | $2.74T | -3.34% | 79 Outperform | |
| Micron | 5.19% | $1.78M | $414.84B | 315.18% | 79 Outperform | |
| ASML Holding NV | 5.13% | $1.76M | €453.65B | 92.32% | 76 Outperform | |
| Advanced Micro Devices | 4.14% | $1.42M | $342.73B | 104.17% | 73 Outperform | |
| Palantir Technologies | 3.91% | $1.34M | $350.36B | 67.51% | 74 Outperform | |
| Meta Platforms | 3.70% | $1.27M | $1.47T | -0.80% | 76 Outperform |
FAI Technical Analysis
Negative
―
Price Trends
39.48
Negative
40.33
Negative
39.21
Negative
Market Momentum
-0.69
Positive
45.78
Neutral
52.89
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FAI, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 38.47, equal to the 50-day MA of 39.48, and equal to the 200-day MA of 39.21, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 52.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAI.
FAI Peer Comparison
Comparison Results
Performance Comparison
FAI
First Trust Bloomberg Artificial Intelligence ETF
37.76
13.42
55.14%
AIFD
TCW Artificial Intelligence ETF
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IQM
Franklin Intelligent Machines ETF
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PRNT
3D Printing ETF
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IBOT
Vaneck Robotics 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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