ALAI vs. FAI

Last updated Aug 4, 2026

ALAI (Alger AI Enablers & Adopters ETF) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both Artificial Intelligence funds. ALAI is actively managed, while FAI is passively managed. Over the past year, ALAI returned 40.53% vs 44.67% for FAI. Their correlation of 0.90 means they have usually moved in the same direction. ALAI charges 0.55%/yr vs 0.65%/yr for FAI.

Performance

ALAI vs. FAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) 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, ALAI achieves a 22.63% return, which is significantly lower than FAI's 26.88% return.

ALAI

• 1D: 2.98%
• 1M: 1.63%
• 6M: 22.67%
• YTD: 22.63%
• 1Y: 40.53%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 42.22%

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)
ALAI Alger AI Enablers & Adopters ETF	$3.00M	$4.32M	$4.07M
FAI First Trust Bloomberg Artificial Intelligence ETF	$1.47M	$2.87M	$3.61M

ALAI vs. FAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	22.63%	39.81%	1.40%
FAI First Trust Bloomberg Artificial Intelligence ETF	26.88%	33.37%	2.28%

Correlation

The correlation between ALAI and FAI is 0.89, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.89
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.90

The correlation between ALAI and FAI has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

Return for Risk

ALAI vs. FAI — Risk / Return Rank

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

ALAI

ALAI Risk / Return Rank: 56
ALAI Sharpe Ratio Rank: 60
ALAI Sortino Ratio Rank: 59
ALAI Omega Ratio Rank: 54
ALAI Calmar Ratio Rank: 57
ALAI Martin Ratio Rank: 51

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.

ALAI vs. FAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) 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.

	ALAI	FAI	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.54	-0.06
Sortino ratio: Return per unit of downside risk	2.07	2.05	+0.02
Omega ratio: Gain probability vs. loss probability	1.25	1.26	-0.01
Calmar ratio: Return relative to maximum drawdown	2.09	2.38	-0.29
Martin ratio: Return relative to average drawdown	6.16	6.18	-0.02

ALAI vs. FAI - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 1.48, which is comparable to the FAI Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of ALAI 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

ALAI vs. FAI - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, which is greater than FAI's maximum drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for ALAI and FAI.

Drawdown Indicators

	ALAI	FAI	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-27.82%	-1.54%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-18.84%	-0.64%
Current Drawdown Current decline from peak	-5.28%	-9.88%	+4.60%
Average Drawdown Average peak-to-trough decline	-5.18%	-5.78%	+0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.59%	7.25%	-0.66%

Volatility

ALAI vs. FAI - Volatility Comparison

Alger AI Enablers & Adopters ETF (ALAI) and First Trust Bloomberg Artificial Intelligence ETF (FAI) have volatilities of 10.48% and 10.22%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	FAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.48%	10.22%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	22.49%	24.76%	-2.27%
Volatility (1Y) Calculated over the trailing 1-year period	27.55%	29.25%	-1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.15%	31.34%	-2.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.15%	31.34%	-2.19%

ALAI vs. FAI - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is lower than FAI's 0.65% expense ratio.

Dividends

ALAI vs. FAI - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.22%, while FAI has not paid dividends to shareholders.

Position	TTM	2025	2024
ALAI Alger AI Enablers & Adopters ETF	1.22%	1.50%	0.66%
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%

Frequently Asked Questions

Can I hold both ALAI and FAI in my portfolio?

ALAI and FAI have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or FAI?

ALAI has higher volatility (10.48%) compared to FAI (10.22%). In terms of maximum drawdown, ALAI dropped -29.36% vs FAI's -27.82%.

Which ETF is better, ALAI or FAI?

On 1-year performance, FAI leads with 44.67% vs 40.53% for ALAI. On fees, ALAI is cheaper at 0.55% 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, ALAI or FAI?

Over the 1-year period, FAI has performed better with a 44.67% return vs 40.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or FAI?

ALAI is cheaper with a 0.55% expense ratio, compared with 0.65% for FAI.

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

ALAI has the higher dividend yield at 1.22%, compared with 0.00% for FAI.

What is the main difference between ALAI and FAI?

They also come from different issuers: Alger and First Trust. Their fees differ too: 0.55% for ALAI and 0.65% for FAI.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (1.54 vs 1.48), 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.