BAI vs. FDL

Last updated Jun 24, 2026

BAI (iShares A.I. Innovation and Tech Active ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - BAI is a Technology Equities fund actively managed by iShares, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. BAI is actively managed, while FDL is passively managed. Over the past year, BAI returned 86.14% vs 22.39% for FDL. At a correlation of -0.04, they often move in opposite directions. BAI charges 0.55%/yr vs 0.43%/yr for FDL.

Performance

BAI vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares A.I. Innovation and Tech Active ETF (BAI) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BAI achieves a 49.94% return, which is significantly higher than FDL's 12.67% return.

BAI

• 1D: -7.93%
• 1M: 4.43%
• YTD: 49.94%
• 6M: 47.29%
• 1Y: 86.14%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FDL

• 1D: 1.20%
• 1M: -2.75%
• YTD: 12.67%
• 6M: 13.02%
• 1Y: 22.39%
• 3Y*: 19.10%
• 5Y*: 13.08%
• 10Y*: 11.12%

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

BAI vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BAI iShares A.I. Innovation and Tech Active ETF	49.94%	25.22%	8.89%
FDL First Trust Morningstar Dividend Leaders Index Fund	12.67%	14.79%	-2.11%

Correlation

The correlation between BAI and FDL is -0.16, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.16
Correlation (All Time) Calculated using the full available price history since Oct 22, 2024	-0.04

The correlation between BAI and FDL shifts across timeframes, from -0.16 (1 year) to -0.04 (all time), reflecting how their relationship changes across market environments.

BAI vs. FDL - Sectors Allocation Comparison

Sectors	BAI	FDL
Technology	88.8%	1.4%
Industrials	4.6%	3.9%
Communication Services	3.9%	10.6%
Consumer Cyclical	2.6%	4.7%
Healthcare	0.7%	17.6%
Basic Materials	-	0.3%
Consumer Defensive	-	14.4%
Energy	-	25.7%
Financial Services	-	15.2%
Real Estate	-	-
Utilities	-	6.5%

Return for Risk

BAI vs. FDL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BAI

BAI Risk / Return Rank: 74
BAI Sharpe Ratio Rank: 77
BAI Sortino Ratio Rank: 60
BAI Omega Ratio Rank: 65
BAI Calmar Ratio Rank: 90
BAI Martin Ratio Rank: 77

FDL

FDL Risk / Return Rank: 69
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 68
FDL Omega Ratio Rank: 57
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 69

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BAI vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares A.I. Innovation and Tech Active ETF (BAI) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	BAI	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.32	1.95	+0.37
Sortino ratio: Return per unit of downside risk	2.70	2.96	-0.26
Omega ratio: Gain probability vs. loss probability	1.37	1.34	+0.03
Calmar ratio: Return relative to maximum drawdown	5.34	5.26	+0.07
Martin ratio: Return relative to average drawdown	14.08	12.40	+1.69

BAI vs. FDL - Sharpe Ratio Comparison

The current BAI Sharpe Ratio is 2.32, which is comparable to the FDL Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of BAI and FDL, 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

BAI vs. FDL - Drawdown Comparison

The maximum BAI drawdown since its inception was -34.09%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for BAI and FDL.

Drawdown Indicators

	BAI	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-34.09%	-65.93%	+31.84%
Max Drawdown (1Y) Largest decline over 1 year	-16.22%	-4.27%	-11.95%
Max Drawdown (3Y) Largest decline over 3 years	—	-12.24%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-16.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-7.93%	-3.09%	-4.84%
Average Drawdown Average peak-to-trough decline	-6.87%	-9.64%	+2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.14%	1.81%	+4.33%

Volatility

BAI vs. FDL - Volatility Comparison

iShares A.I. Innovation and Tech Active ETF (BAI) has a higher volatility of 20.05% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 3.72%. This indicates that BAI's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BAI	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.05%	3.72%	+16.33%
Volatility (6M) Calculated over the trailing 6-month period	31.41%	8.09%	+23.32%
Volatility (1Y) Calculated over the trailing 1-year period	37.30%	11.54%	+25.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.40%	14.31%	+23.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.40%	17.11%	+20.29%

BAI vs. FDL - Expense Ratio Comparison

BAI has a 0.55% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

BAI vs. FDL - Dividend Comparison

BAI's dividend yield for the trailing twelve months is around 1.19%, less than FDL's 3.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BAI iShares A.I. Innovation and Tech Active ETF	1.19%	1.80%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FDL First Trust Morningstar Dividend Leaders Index Fund	3.70%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%

Frequently Asked Questions

Can I hold both BAI and FDL in my portfolio?

BAI and FDL have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BAI or FDL?

BAI has higher volatility (20.05%) compared to FDL (3.72%). In terms of maximum drawdown, BAI dropped -34.09% vs FDL's -65.93%.

Which ETF is better, BAI or FDL?

On 1-year performance, BAI leads with 86.14% vs 22.39% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BAI or FDL?

Over the 1-year period, BAI has performed better with a 86.14% return vs 22.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BAI or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.55% for BAI.

Which ETF pays a higher dividend yield, BAI or FDL?

FDL has the higher dividend yield at 3.70%, compared with 1.19% for BAI.

What is the main difference between BAI and FDL?

BAI is categorized as Technology Equities, while FDL is Large Cap Value Equities. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.55% for BAI and 0.43% for FDL.

Which has better risk-adjusted returns?

BAI currently has the higher Sharpe Ratio (2.32 vs 1.95), 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.