FAI vs. AIBD

Last updated Jul 11, 2026

FAI (First Trust Bloomberg Artificial Intelligence ETF) and AIBD (Direxion Daily AI and Big Data Bear 2X Shares) are both exchange-traded funds - FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index, while AIBD is a Inverse Equities fund tracking the Solactive US AI & Big Data Index. Both are passively managed. Over the past year, FAI returned 49.94% vs -43.82% for AIBD. At a correlation of -0.86, they often move in opposite directions. 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 28.90% return, which is significantly higher than AIBD's -31.99% return.

FAI

• 1D: -0.41%
• 1M: 0.70%
• 6M: 25.51%
• YTD: 28.90%
• 1Y: 49.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AIBD

• 1D: 0.46%
• 1M: -2.87%
• 6M: -29.24%
• YTD: -31.99%
• 1Y: -43.82%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FAI vs. AIBD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	28.90%	33.37%	2.28%
AIBD Direxion Daily AI and Big Data Bear 2X Shares	-31.99%	-49.15%	-6.44%

Correlation

The correlation between FAI and AIBD is -0.80, 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	-0.80
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 -0.86 to -0.80 - a consistent structural relationship.

Return for Risk

FAI vs. AIBD — Risk / Return Rank

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

FAI

FAI Risk / Return Rank: 62
FAI Sharpe Ratio Rank: 69
FAI Sortino Ratio Rank: 60
FAI Omega Ratio Rank: 62
FAI Calmar Ratio Rank: 66
FAI Martin Ratio Rank: 56

AIBD

AIBD Risk / Return Rank: 2
AIBD Sharpe Ratio Rank: 3
AIBD Sortino Ratio Rank: 3
AIBD Omega Ratio Rank: 3
AIBD Calmar Ratio Rank: 3
AIBD Martin Ratio Rank: 1

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.

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	1.78	-0.84	+2.61
Sortino ratio: Return per unit of downside risk	2.27	-1.18	+3.45
Omega ratio: Gain probability vs. loss probability	1.30	0.87	+0.42
Calmar ratio: Return relative to maximum drawdown	2.64	-0.78	+3.42
Martin ratio: Return relative to average drawdown	7.77	-1.60	+9.37

FAI vs. AIBD - Sharpe Ratio Comparison

The current FAI Sharpe Ratio is 1.78, which is higher than the AIBD Sharpe Ratio of -0.84. 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	-8.44%	-79.30%	+70.86%
Average Drawdown Average peak-to-trough decline	-5.48%	-49.52%	+44.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.38%	28.77%	-22.39%

Volatility

FAI vs. AIBD - Volatility Comparison

The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 11.84%, while Direxion Daily AI and Big Data Bear 2X Shares (AIBD) has a volatility of 17.62%. 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	11.84%	17.62%	-5.78%
Volatility (6M) Calculated over the trailing 6-month period	23.56%	41.86%	-18.30%
Volatility (1Y) Calculated over the trailing 1-year period	27.99%	54.76%	-26.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.12%	57.23%	-26.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.12%	57.23%	-26.11%

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 3.71%.

Position	TTM	2025	2024
AIBD Direxion Daily AI and Big Data Bear 2X Shares	3.71%	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 -0.80, 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 (17.62%) compared to FAI (11.84%). 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 49.94% vs -43.82% for AIBD. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 11.84%. 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 49.94% return vs -43.82%. 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 3.71%, compared with 0.00% for FAI.

What is the main difference between FAI and AIBD?

FAI is categorized as Technology Equities, while AIBD is Inverse Equities. 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 (1.77 vs -0.84), 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.