AIBD vs. FAI

Last updated Aug 4, 2026

AIBD (Direxion Daily AI and Big Data Bear 2X Shares) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both Artificial Intelligence funds - AIBD tracks the Solactive US AI & Big Data Index while FAI tracks the Bloomberg Artificial Intelligence Index. Both are passively managed. Over the past year, AIBD returned -41.24% vs 44.67% for FAI. Their -0.87 correlation means they have often moved in opposite directions in the past. AIBD charges 1.05%/yr vs 0.65%/yr for FAI.

Performance

AIBD vs. FAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily AI and Big Data Bear 2X Shares (AIBD) and First Trust Bloomberg Artificial Intelligence ETF (FAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AIBD achieves a -31.49% return, which is significantly lower than FAI's 26.88% return.

AIBD

• 1D: -6.61%
• 1M: -5.41%
• 6M: -32.88%
• YTD: -31.49%
• 1Y: -41.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -48.66%

FAI

• 1D: 3.09%
• 1M: 1.06%
• 6M: 24.84%
• YTD: 26.88%
• 1Y: 44.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 38.15%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AIBD Direxion Daily AI and Big Data Bear 2X Shares	$519.95K	$453.46K	$480.15K
FAI First Trust Bloomberg Artificial Intelligence ETF	$1.47M	$2.87M	$3.61M

AIBD vs. FAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
AIBD Direxion Daily AI and Big Data Bear 2X Shares	-31.49%	-49.15%	-6.44%
FAI First Trust Bloomberg Artificial Intelligence ETF	26.88%	33.37%	2.28%

Correlation

The correlation between AIBD and FAI is -0.84, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.84
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.87

The correlation between AIBD and FAI has been stable across timeframes, ranging from -0.87 to -0.84 - a consistent structural relationship.

Return for Risk

AIBD vs. FAI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AIBD

AIBD Risk / Return Rank: 3
AIBD Sharpe Ratio Rank: 3
AIBD Sortino Ratio Rank: 3
AIBD Omega Ratio Rank: 4
AIBD Calmar Ratio Rank: 4
AIBD Martin Ratio Rank: 1

FAI

FAI Risk / Return Rank: 55
FAI Sharpe Ratio Rank: 59
FAI Sortino Ratio Rank: 54
FAI Omega Ratio Rank: 53
FAI Calmar Ratio Rank: 62
FAI Martin Ratio Rank: 49

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AIBD vs. FAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily AI and Big Data Bear 2X Shares (AIBD) and First Trust Bloomberg Artificial Intelligence ETF (FAI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AIBD	FAI	Difference
Sharpe ratio: Return per unit of total volatility	-0.73	1.54	-2.27
Sortino ratio: Return per unit of downside risk	-0.92	2.05	-2.97
Omega ratio: Gain probability vs. loss probability	0.90	1.26	-0.36
Calmar ratio: Return relative to maximum drawdown	-0.70	2.38	-3.09
Martin ratio: Return relative to average drawdown	-1.38	6.18	-7.56

AIBD vs. FAI - Sharpe Ratio Comparison

The current AIBD Sharpe Ratio is -0.73, which is lower than the FAI Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of AIBD and FAI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AIBD vs. FAI - Drawdown Comparison

The maximum AIBD drawdown since its inception was -82.11%, which is greater than FAI's maximum drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for AIBD and FAI.

Drawdown Indicators

	AIBD	FAI	Difference
Max Drawdown Largest peak-to-trough decline	-82.11%	-27.82%	-54.29%
Max Drawdown (1Y) Largest decline over 1 year	-58.75%	-18.84%	-39.91%
Current Drawdown Current decline from peak	-79.15%	-9.88%	-69.27%
Average Drawdown Average peak-to-trough decline	-50.32%	-5.78%	-44.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.92%	7.25%	+22.67%

Volatility

AIBD vs. FAI - Volatility Comparison

Direxion Daily AI and Big Data Bear 2X Shares (AIBD) has a higher volatility of 19.15% compared to First Trust Bloomberg Artificial Intelligence ETF (FAI) at 10.22%. This indicates that AIBD's price experiences larger fluctuations and is considered to be riskier than FAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AIBD	FAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	19.15%	10.22%	+8.93%
Volatility (6M) Calculated over the trailing 6-month period	44.02%	24.76%	+19.26%
Volatility (1Y) Calculated over the trailing 1-year period	56.47%	29.25%	+27.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	57.51%	31.34%	+26.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	57.51%	31.34%	+26.17%

AIBD vs. FAI - Expense Ratio Comparison

AIBD has a 1.05% expense ratio, which is higher than FAI's 0.65% expense ratio.

Dividends

AIBD vs. FAI - Dividend Comparison

AIBD's dividend yield for the trailing twelve months is around 3.68%, while FAI has not paid dividends to shareholders.

Position	TTM	2025	2024
AIBD Direxion Daily AI and Big Data Bear 2X Shares	3.68%	4.37%	3.58%
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%

Frequently Asked Questions

Can I hold both AIBD and FAI in my portfolio?

AIBD and FAI have a correlation of -0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIBD or FAI?

AIBD has higher volatility (19.15%) compared to FAI (10.22%). In terms of maximum drawdown, AIBD dropped -82.11% vs FAI's -27.82%.

Which ETF is better, AIBD or FAI?

On 1-year performance, FAI leads with 44.67% vs -41.24% for AIBD. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 10.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AIBD or FAI?

Over the 1-year period, FAI has performed better with a 44.67% return vs -41.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AIBD or FAI?

FAI is cheaper with a 0.65% expense ratio, compared with 1.05% for AIBD.

Which ETF pays a higher dividend yield, AIBD or FAI?

AIBD has the higher dividend yield at 3.68%, compared with 0.00% for FAI.

What is the main difference between AIBD and FAI?

AIBD tracks Solactive US AI & Big Data Index, while FAI tracks Bloomberg Artificial Intelligence Index. They also come from different issuers: Direxion and First Trust. Their fees differ too: 1.05% for AIBD and 0.65% for FAI.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (1.54 vs -0.73), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.