AIPO vs. FAI

Last updated Aug 6, 2026

AIPO (Defiance AI & Power Infrastructure ETF) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both Artificial Intelligence funds - AIPO tracks the MarketVector™ US Listed AI and Power Infrastructure Index while FAI tracks the Bloomberg Artificial Intelligence Index. Both are passively managed. Over the past year, AIPO returned 47.44% vs 46.14% for FAI. Their 0.77 correlation means they have sometimes moved together and sometimes differently. AIPO charges 0.69%/yr vs 0.65%/yr for FAI.

Performance

AIPO vs. FAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance AI & Power Infrastructure ETF (AIPO) 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, AIPO achieves a 36.26% return, which is significantly higher than FAI's 31.06% return.

AIPO

• 1D: -0.43%
• 1M: -5.55%
• 6M: 26.16%
• YTD: 36.26%
• 1Y: 47.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 47.46%

FAI

• 1D: -1.05%
• 1M: 1.90%
• 6M: 37.79%
• YTD: 31.06%
• 1Y: 46.14%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 40.65%

*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)
AIPO Defiance AI & Power Infrastructure ETF	$40.92M	$37.68M	$46.01M
FAI First Trust Bloomberg Artificial Intelligence ETF	$1.72M	$2.75M	$3.66M

AIPO vs. FAI - Yearly Performance Comparison

	2026 (YTD)	2025
AIPO Defiance AI & Power Infrastructure ETF	36.26%	9.46%
FAI First Trust Bloomberg Artificial Intelligence ETF	31.06%	12.45%

Correlation

The correlation between AIPO and FAI is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (All Time) Calculated using the full available price history since Jul 25, 2025	0.77

The correlation between AIPO and FAI has been stable across timeframes, ranging from 0.77 to 0.77 - a consistent structural relationship.

Return for Risk

AIPO vs. FAI — Risk / Return Rank

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

AIPO

AIPO Risk / Return Rank: 45
AIPO Sharpe Ratio Rank: 44
AIPO Sortino Ratio Rank: 41
AIPO Omega Ratio Rank: 41
AIPO Calmar Ratio Rank: 47
AIPO Martin Ratio Rank: 49

FAI

FAI Risk / Return Rank: 53
FAI Sharpe Ratio Rank: 57
FAI Sortino Ratio Rank: 52
FAI Omega Ratio Rank: 49
FAI Calmar Ratio Rank: 61
FAI Martin Ratio Rank: 48

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.

AIPO vs. FAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance AI & Power Infrastructure ETF (AIPO) 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.

	AIPO	FAI	Difference
Sharpe ratio: Return per unit of total volatility	1.27	1.57	-0.30
Sortino ratio: Return per unit of downside risk	1.76	2.10	-0.35
Omega ratio: Gain probability vs. loss probability	1.22	1.26	-0.04
Calmar ratio: Return relative to maximum drawdown	1.96	2.46	-0.50
Martin ratio: Return relative to average drawdown	6.41	6.36	+0.04

AIPO vs. FAI - Sharpe Ratio Comparison

The current AIPO Sharpe Ratio is 1.27, which is comparable to the FAI Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of AIPO 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

AIPO vs. FAI - Drawdown Comparison

The maximum AIPO drawdown since its inception was -24.36%, smaller than the maximum FAI drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for AIPO and FAI.

Drawdown Indicators

	AIPO	FAI	Difference
Max Drawdown Largest peak-to-trough decline	-24.36%	-27.82%	+3.46%
Max Drawdown (1Y) Largest decline over 1 year	-24.36%	-18.84%	-5.52%
Current Drawdown Current decline from peak	-13.32%	-6.91%	-6.41%
Average Drawdown Average peak-to-trough decline	-5.37%	-5.78%	+0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.42%	7.27%	+0.15%

Volatility

AIPO vs. FAI - Volatility Comparison

Defiance AI & Power Infrastructure ETF (AIPO) has a higher volatility of 14.01% compared to First Trust Bloomberg Artificial Intelligence ETF (FAI) at 10.63%. This indicates that AIPO'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

	AIPO	FAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.01%	10.63%	+3.38%
Volatility (6M) Calculated over the trailing 6-month period	29.90%	24.94%	+4.96%
Volatility (1Y) Calculated over the trailing 1-year period	37.56%	29.46%	+8.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.19%	31.45%	+5.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.19%	31.45%	+5.74%

AIPO vs. FAI - Expense Ratio Comparison

AIPO has a 0.69% expense ratio, which is higher than FAI's 0.65% expense ratio.

Dividends

AIPO vs. FAI - Dividend Comparison

AIPO's dividend yield for the trailing twelve months is around 0.01%, while FAI has not paid dividends to shareholders.

Position	TTM	2025	2024
AIPO Defiance AI & Power Infrastructure ETF	0.01%	0.01%	0.00%
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%

Frequently Asked Questions

Can I hold both AIPO and FAI in my portfolio?

AIPO and FAI have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIPO or FAI?

AIPO has higher volatility (14.01%) compared to FAI (10.63%). In terms of maximum drawdown, AIPO dropped -24.36% vs FAI's -27.82%.

Which ETF is better, AIPO or FAI?

On 1-year performance, AIPO leads with 47.44% vs 46.14% for FAI. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 10.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AIPO or FAI?

Over the 1-year period, AIPO has performed better with a 47.44% return vs 46.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AIPO or FAI?

FAI is cheaper with a 0.65% expense ratio, compared with 0.69% for AIPO.

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

AIPO has the higher dividend yield at 0.01%, compared with 0.00% for FAI.

What is the main difference between AIPO and FAI?

AIPO tracks MarketVector™ US Listed AI and Power Infrastructure Index, while FAI tracks Bloomberg Artificial Intelligence Index. They also come from different issuers: Defiance and First Trust. Their fees differ too: 0.69% for AIPO and 0.65% for FAI.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (1.57 vs 1.27), 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.