FAI vs. AIBD

Last updated Aug 1, 2026

FAI (First Trust Bloomberg Artificial Intelligence ETF) and AIBD (Direxion Daily AI and Big Data Bear 2X Shares) are both Artificial Intelligence funds - FAI tracks the Bloomberg Artificial Intelligence Index while AIBD tracks the Solactive US AI & Big Data Index. Both are passively managed. Over the past year, FAI returned 40.34% vs -37.08% for AIBD. Their -0.87 correlation means they have often moved in opposite directions in the past. FAI charges 0.65%/yr vs 1.05%/yr for AIBD.

Performance

FAI vs. AIBD - Performance Comparison

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

Returns By Period

In the year-to-date period, FAI achieves a 23.08% return, which is significantly higher than AIBD's -26.64% return.

FAI

• 1D: 2.93%
• 1M: -1.97%
• 6M: 21.54%
• YTD: 23.08%
• 1Y: 40.34%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 35.90%

AIBD

• 1D: -2.32%
• 1M: 1.29%
• 6M: -28.58%
• YTD: -26.64%
• 1Y: -37.08%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -47.18%

*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	$520.16K	$446.88K	$480.75K
FAI First Trust Bloomberg Artificial Intelligence ETF	$1.56M	$3.03M	$3.57M

FAI vs. AIBD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	23.08%	33.37%	2.28%
AIBD Direxion Daily AI and Big Data Bear 2X Shares	-26.64%	-49.15%	-6.44%

Correlation

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

Return for Risk

FAI vs. AIBD — Risk / Return Rank

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

FAI

FAI Risk / Return Rank: 48
FAI Sharpe Ratio Rank: 50
FAI Sortino Ratio Rank: 47
FAI Omega Ratio Rank: 45
FAI Calmar Ratio Rank: 53
FAI Martin Ratio Rank: 44

AIBD

AIBD Risk / Return Rank: 4
AIBD Sharpe Ratio Rank: 4
AIBD Sortino Ratio Rank: 4
AIBD Omega Ratio Rank: 5
AIBD Calmar Ratio Rank: 4
AIBD Martin Ratio Rank: 3

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.

FAI vs. AIBD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Artificial Intelligence ETF (FAI) and Direxion Daily AI and Big Data Bear 2X Shares (AIBD). 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.

	FAI	AIBD	Difference
Sharpe ratio: Return per unit of total volatility	1.23	-0.64	+1.87
Sortino ratio: Return per unit of downside risk	1.71	-0.72	+2.44
Omega ratio: Gain probability vs. loss probability	1.21	0.92	+0.29
Calmar ratio: Return relative to maximum drawdown	1.91	-0.61	+2.52
Martin ratio: Return relative to average drawdown	4.97	-1.21	+6.18

FAI vs. AIBD - Sharpe Ratio Comparison

The current FAI Sharpe Ratio is 1.23, which is higher than the AIBD Sharpe Ratio of -0.64. The chart below compares the historical Sharpe Ratios of FAI and AIBD, 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

FAI vs. AIBD - Drawdown Comparison

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

Drawdown Indicators

	FAI	AIBD	Difference
Max Drawdown Largest peak-to-trough decline	-27.82%	-82.11%	+54.29%
Max Drawdown (1Y) Largest decline over 1 year	-18.84%	-58.75%	+39.91%
Current Drawdown Current decline from peak	-12.57%	-77.68%	+65.11%
Average Drawdown Average peak-to-trough decline	-5.77%	-50.27%	+44.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.22%	29.74%	-22.52%

Volatility

FAI vs. AIBD - Volatility Comparison

The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 10.00%, while Direxion Daily AI and Big Data Bear 2X Shares (AIBD) has a volatility of 18.22%. This indicates that FAI experiences smaller price fluctuations and is considered to be less risky than AIBD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAI	AIBD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.00%	18.22%	-8.22%
Volatility (6M) Calculated over the trailing 6-month period	24.66%	43.85%	-19.19%
Volatility (1Y) Calculated over the trailing 1-year period	29.24%	56.04%	-26.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.30%	57.40%	-26.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.30%	57.40%	-26.10%

FAI vs. AIBD - Expense Ratio Comparison

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

Dividends

FAI vs. AIBD - Dividend Comparison

FAI has not paid dividends to shareholders, while AIBD's dividend yield for the trailing twelve months is around 3.44%.

Position	TTM	2025	2024
AIBD Direxion Daily AI and Big Data Bear 2X Shares	3.44%	4.37%	3.58%
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%

Frequently Asked Questions

Can I hold both FAI and AIBD in my portfolio?

FAI and AIBD 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, FAI or AIBD?

AIBD has higher volatility (18.22%) compared to FAI (10.00%). In terms of maximum drawdown, FAI dropped -27.82% vs AIBD's -82.11%.

Which ETF is better, FAI or AIBD?

On 1-year performance, FAI leads with 40.34% vs -37.08% for AIBD. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 10.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAI or AIBD?

Over the 1-year period, FAI has performed better with a 40.34% return vs -37.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAI or AIBD?

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

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

AIBD has the higher dividend yield at 3.44%, compared with 0.00% for FAI.

What is the main difference between FAI and AIBD?

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

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (1.23 vs -0.64), 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.