FAI - ETF AI Analysis

Top Page

First Trust Bloomberg Artificial Intelligence ETF (FAI)

Rating:68Neutral

Price Target:―

FAI, the First Trust Bloomberg Artificial Intelligence ETF, has a solid overall rating driven mainly by large, financially strong AI leaders like Alphabet, Nvidia, Broadcom, Microsoft, and Amazon, which all benefit from robust earnings and major investments in AI, cloud, and data centers. Some holdings, such as Palantir and AMD, face risks from high valuations and mixed technical signals, which can limit upside and slightly weigh on the fund’s rating. The main risk factor is that many top positions share similar AI and high-growth profiles, so if expensive AI-related stocks fall out of favor, the ETF could be hit broadly at the same time.

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)

AUM37.34M

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. Volume5,915

30 Day Avg. Volume8,638

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

51.41

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 U.S. mega-cap tech and chip names doing most of the heavy lifting. Nvidia, Micron, and ASML have been rising, giving the fund a strong semiconductor backbone that’s currently driving performance. On the other side, Microsoft, Amazon, AMD, and Palantir have been losing steam lately, acting as a drag despite their long-term AI stories. With a clear tilt toward technology and communication services and a global mix led by U.S. giants, this ETF is very much a bet on the AI hardware-and-cloud boom.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	8.15%	$3.04M	$4.45T	58.45%	76 Outperform
AVGO	Broadcom	8.12%	$3.03M	$1.59T	75.57%	76 Outperform
GOOGL	Alphabet Class A	8.09%	$3.02M	$3.67T	86.50%	85 Outperform
AMZN	Amazon	7.77%	$2.90M	$2.25T	8.07%	71 Outperform
MSFT	Microsoft	7.14%	$2.67M	$2.98T	6.10%	79 Outperform
MU	Micron	5.40%	$2.02M	$456.23B	327.22%	79 Outperform
ASML	ASML Holding NV	4.92%	$1.84M	€450.89B	82.31%	76 Outperform
META	Meta Platforms	4.12%	$1.54M	$1.61T	8.05%	76 Outperform
PLTR	Palantir Technologies	3.84%	$1.43M	$367.12B	92.79%	74 Outperform
AMD	Advanced Micro Devices	3.72%	$1.39M	$322.40B	101.55%	73 Outperform

FAI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

40.50

Negative

100DMA

40.95

Negative

200DMA

38.84

Negative

Market Momentum

MACD

-0.28

Negative

RSI

42.97

Neutral

STOCH

65.35

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 39.36, equal to the 50-day MA of 40.50, and equal to the 200-day MA of 38.84, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 65.35 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	―	―	$37.34M	0.65%	68 Neutral
AIFD	―	―	$91.57M	0.75%	72 Outperform
IQM	―	―	$74.52M	0.50%	71 Outperform
IBOT	―	―	$60.52M	0.47%	69 Neutral
PRNT	―	―	$60.19M	0.66%	63 Neutral
TEKY	―	―	$46.68M	0.50%	64 Neutral

Performance Comparison

FAI

First Trust Bloomberg Artificial Intelligence ETF

38.72

10.11

35.34%

AIFD

TCW Artificial Intelligence ETF

―

IQM

Franklin Intelligent Machines ETF

―

IBOT

Vaneck Robotics 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: ―

Table of Contents