FAI - ETF AI Analysis
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First Trust Bloomberg Artificial Intelligence ETF (FAI)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Overall Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing that its AI-focused strategy has recently worked well for investors.
Leading AI and Chip Companies in Top Holdings
Several major positions like Broadcom, Nvidia, Amazon, ASML, AMD, and Micron have shown strong or steady performance, helping drive the fund’s returns.
Focused Yet Somewhat Global Tech Exposure
While most of the fund is in U.S. technology and communication stocks, it also includes meaningful positions in companies from the Netherlands and Asia, adding some international diversification.
Negative Factors
High Concentration in a Few Big Tech Names
A large share of the fund is tied up in a small group of mega-cap tech and AI companies, which increases the impact if any of these stocks stumble.
Notable Underperformance in Some Key Holdings
Important positions like Microsoft, Meta Platforms, and Palantir have shown weak recent performance, which can drag on the ETF’s overall results.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, meaning more of the returns are used to cover fees instead of going to investors.
FAI vs. SPDR S&P 500 ETF (SPY)
AUM175.88M
RegionGlobal
Expense Ratio0.65%
Beta1.63
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. Volume18,345
30 Day Avg. Volume60,839
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
69.92Price Target Upside― Downside
Rating ConsensusStrong 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 that build or use AI and robotics, mainly in the technology and communication sectors. Well-known holdings include Nvidia, Microsoft, Amazon, and Alphabet (Google). Someone might invest in FAI to seek long-term growth by betting on the rise of AI across many industries, while also getting a mix of different leading tech names in one investment. A key risk is that it is heavily concentrated in technology stocks, 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 essentially an AI power pack, with U.S. Big Tech and chip leaders steering the ship. Microsoft and Alphabet are rising steadily, helped by strong cloud and AI momentum, while Palantir has been a standout lately, giving the fund some extra spark. On the hardware side, Nvidia and Micron are key drivers, though Nvidia’s recent performance has been more mixed. Broadcom and Meta are losing a bit of steam, acting as mild drags. Overall, it’s a globally focused fund, but heavily concentrated in U.S. tech and semiconductor names.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Microsoft | 9.66% | $16.99M | $3.69T | -2.60% | 79 Outperform | |
| Nvidia | 8.74% | $15.37M | $5.07T | 26.54% | 76 Outperform | |
| Amazon | 7.88% | $13.87M | $2.81T | 10.65% | 71 Outperform | |
| Broadcom | 7.70% | $13.54M | $1.69T | 20.38% | 76 Outperform | |
| Alphabet Class A | 7.07% | $12.43M | $4.17T | 64.84% | 85 Outperform | |
| Palantir Technologies | 5.37% | $9.44M | $426.55B | 17.59% | 74 Outperform | |
| Oracle | 4.04% | $7.11M | $428.82B | -38.05% | 66 Neutral | |
| Meta Platforms | 3.66% | $6.43M | $1.47T | -23.96% | 76 Outperform | |
| Micron | 3.58% | $6.30M | $1.06T | 666.71% | 79 Outperform | |
| ASML Holding NV | 3.46% | $6.08M | €572.06B | 126.61% | 76 Outperform |
FAI Technical Analysis
Positive
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Price Trends
52.48
Positive
50.77
Positive
45.51
Positive
Market Momentum
0.60
Positive
57.85
Neutral
59.70
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 54.07, equal to the 50-day MA of 52.48, and equal to the 200-day MA of 45.51, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 59.70 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
54.70
18.00
49.05%
ALAI
Alger AI Enablers & Adopters ETF
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ROBT
First Trust Nasdaq Artificial Intelligence & Robotics ETF
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WTAI
WisdomTree Artificial Intelligence and Innovation Fund
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―
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AGIX
KraneShares Artificial Intelligence & Technology ETF
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THNQ
ROBO Global Artificial Intelligence 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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