FAI - ETF AI Analysis

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First Trust Bloomberg Artificial Intelligence ETF (FAI)

Rating:69Neutral

Price Target:―

FAI, the First Trust Bloomberg Artificial Intelligence ETF, earns a solid overall rating largely because it is built around leading AI-focused companies like Alphabet and Microsoft, which have strong financial performance and are investing heavily in cloud and AI growth. Other major holdings such as Nvidia, Broadcom, and Amazon also support the rating through their roles in AI chips, infrastructure, and cloud services, though many of these stocks trade at premium valuations and show mixed technical signals. The main risk is that the fund is concentrated in high-growth, AI-related tech names with rich valuations, which could make it more sensitive to market pullbacks or changing growth expectations.

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)

AUM37.71M

RegionGlobal

Expense Ratio0.65%

Beta1.48

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. Volume14,972

30 Day Avg. Volume8,837

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

52.47

Price 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 essentially an AI power pack, with Big Tech and chipmakers steering the ship. Alphabet and Amazon have been steady climbers, helping keep the fund’s tech engine humming, while Micron and ASML are rising stars, riding the wave of AI-driven demand for advanced chips and equipment. On the flip side, Microsoft and Meta have been losing a bit of steam lately, and Nvidia and Palantir look more mixed, adding some bumpiness. The fund is heavily tilted toward technology and communication services, with a global footprint but a clear U.S. core.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	8.32%	$3.10M	$4.62T	34.63%	76 Outperform
GOOGL	Alphabet Class A	8.24%	$3.08M	$3.76T	66.82%	85 Outperform
AVGO	Broadcom	8.01%	$2.99M	$1.63T	42.11%	76 Outperform
AMZN	Amazon	7.41%	$2.76M	$2.19T	-12.72%	71 Outperform
MSFT	Microsoft	7.14%	$2.67M	$3.00T	-1.61%	79 Outperform
MU	Micron	5.52%	$2.06M	$461.84B	315.97%	79 Outperform
ASML	ASML Holding NV	5.10%	$1.90M	€461.36B	61.10%	76 Outperform
META	Meta Platforms	4.20%	$1.57M	$1.69T	-11.79%	76 Outperform
AMD	Advanced Micro Devices	3.87%	$1.45M	$348.22B	82.09%	73 Outperform
ORCL	Oracle	3.36%	$1.25M	$451.69B	-10.15%	66 Neutral

FAI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

41.23

Negative

100DMA

41.12

Negative

200DMA

37.93

Positive

Market Momentum

MACD

-0.57

Positive

RSI

39.21

Neutral

STOCH

37.70

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 40.96, equal to the 50-day MA of 41.23, and equal to the 200-day MA of 37.93, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 37.70 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

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FAI	―	―	$37.71M	0.65%	―
XAIX	―	―	$99.76M	0.35%	―
AIFD	―	―	$90.96M	0.75%	―
IQM	―	―	$73.25M	0.50%	―
PRNT	―	―	$71.74M	0.66%	―
TEKY	―	―	$47.77M	0.50%	―

Performance Comparison

FAI

First Trust Bloomberg Artificial Intelligence ETF

39.14

6.08

18.39%

XAIX

Xtrackers Artificial Intelligence and Big Data ETF

―

AIFD

TCW Artificial Intelligence ETF

―

IQM

Franklin Intelligent Machines ETF

―

PRNT

3D Printing ETF

―

TEKY

Lazard Next Gen Technologies 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: ―

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