Education
About Us
Working with TipRanks
Follow Us
FAI - ETF AI Analysis
Top Page
First Trust Bloomberg Artificial Intelligence ETF (FAI)
Rating:70Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several key positions, such as Broadcom, Nvidia, and Palantir, have delivered strong year-to-date performance, driving the ETF's returns.
Technology Focus
With over 70% of its exposure in the technology sector, the ETF benefits from the growth potential of innovative companies.
Healthy Year-to-Date Performance
The ETF has shown solid year-to-date gains, indicating strong momentum in its portfolio.
Negative Factors
High Concentration in U.S. Stocks
Nearly 89% of the ETF's geographic exposure is in U.S. companies, limiting diversification across global markets.
Underperforming Holding
ServiceNow has lagged in year-to-date performance, slightly dragging down the fund's overall returns.
Above-Average Expense Ratio
The ETF's expense ratio of 0.65% is higher than many passive funds, which could eat into long-term returns.
FAI vs. SPDR S&P 500 ETF (SPY)
AUM35.20M
RegionGlobal
Expense Ratio0.65%
Beta1.49
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. Volume8,782
30 Day Avg. Volume8,749
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
51.95Price 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 an investment fund focused on companies leading the way in artificial intelligence and robotics. It tracks the Bloomberg Global Artificial Intelligence Select Index and includes well-known tech giants like Alphabet (Google) and Nvidia. This ETF is ideal for investors who want to tap into the growth potential of AI, a rapidly evolving field that’s transforming industries worldwide. However, since it’s heavily focused on technology, its value can fluctuate significantly with changes in 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
The First Trust Bloomberg Artificial Intelligence ETF (FAI) is heavily concentrated in the technology sector, with names like Nvidia and Microsoft driving its thematic focus on AI innovation. Nvidia’s recent performance has been mixed, showing signs of slowing momentum despite its strong positioning in AI and data centers. Meanwhile, Microsoft’s cloud and AI growth remain promising, though its stock has faced some short-term headwinds. On the brighter side, AMD and Palantir are rising stars, benefiting from robust demand for AI solutions and data-driven technologies. With a global mix of holdings, FAI offers exposure to the transformative AI sector but carries the weight of high valuations and uneven stock performance.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Alphabet Class A | 10.40% | $3.68M | $4.02T | 69.78% | 85 Outperform | |
| Amazon | 8.32% | $2.94M | $2.55T | 5.42% | 71 Outperform | |
| Broadcom | 7.77% | $2.75M | $1.63T | 48.12% | 76 Outperform | |
| Nvidia | 7.64% | $2.70M | $4.55T | 35.83% | 76 Outperform | |
| Microsoft | 6.77% | $2.39M | $3.39T | 6.44% | 79 Outperform | |
| Advanced Micro Devices | 5.31% | $1.88M | $371.06B | 90.87% | 73 Outperform | |
| ASML Holding NV | 4.95% | $1.75M | €439.05B | 57.00% | 76 Outperform | |
| Micron | 4.20% | $1.48M | $378.88B | 218.33% | 79 Outperform | |
| Palantir Technologies | 3.92% | $1.39M | $422.04B | 146.72% | 74 Outperform | |
| Meta Platforms | 3.35% | $1.18M | $1.56T | 1.31% | 76 Outperform |
FAI Technical Analysis
Positive
―
Price Trends
41.23
Positive
40.61
Positive
36.59
Positive
Market Momentum
0.20
Positive
52.74
Neutral
28.54
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 41.55, equal to the 50-day MA of 41.23, and equal to the 200-day MA of 36.59, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 28.54 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
41.79
9.57
29.70%
AIFD
TCW Artificial Intelligence ETF
―
―
―
IQM
Franklin Intelligent Machines ETF
―
―
―
PRNT
3D Printing ETF
―
―
―
TEKY
Lazard Next Gen Technologies ETF
―
―
―
IBOT
Vaneck Robotics ETF
―
―
―
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.
Disclaimer
This 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: ―
Table of Contents