FAI vs. CHAT

Last updated Aug 5, 2026

FAI (First Trust Bloomberg Artificial Intelligence ETF) and CHAT (Roundhill Generative AI & Technology ETF) are both Artificial Intelligence funds. FAI is passively managed, while CHAT is actively managed. Over the past year, FAI returned 48.02% vs 81.24% for CHAT. Their correlation of 0.92 means they have usually moved in the same direction. FAI charges 0.65%/yr vs 0.75%/yr for CHAT.

Performance

FAI vs. CHAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Artificial Intelligence ETF (FAI) and Roundhill Generative AI & Technology ETF (CHAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAI achieves a 32.45% return, which is significantly lower than CHAT's 52.78% return.

FAI

• 1D: 4.39%
• 1M: 5.49%
• 6M: 34.12%
• YTD: 32.45%
• 1Y: 48.02%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 41.61%

CHAT

• 1D: 5.60%
• 1M: 1.45%
• 6M: 45.53%
• YTD: 52.78%
• 1Y: 81.24%
• 3Y*: 46.50%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 49.34%

*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)
CHAT Roundhill Generative AI & Technology ETF	$66.18M	$57.28M	$66.34M
FAI First Trust Bloomberg Artificial Intelligence ETF	$1.29M	$2.80M	$3.60M

FAI vs. CHAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	32.45%	33.37%	2.28%
CHAT Roundhill Generative AI & Technology ETF	52.78%	49.85%	2.09%

Correlation

The correlation between FAI and CHAT is 0.90, 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.	0.90
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.92

The correlation between FAI and CHAT has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

Return for Risk

FAI vs. CHAT — Risk / Return Rank

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

FAI

FAI Risk / Return Rank: 56
FAI Sharpe Ratio Rank: 60
FAI Sortino Ratio Rank: 55
FAI Omega Ratio Rank: 53
FAI Calmar Ratio Rank: 64
FAI Martin Ratio Rank: 50

CHAT

CHAT Risk / Return Rank: 73
CHAT Sharpe Ratio Rank: 81
CHAT Sortino Ratio Rank: 68
CHAT Omega Ratio Rank: 70
CHAT Calmar Ratio Rank: 74
CHAT Martin Ratio Rank: 72

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. CHAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Artificial Intelligence ETF (FAI) and Roundhill Generative AI & Technology ETF (CHAT). 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	CHAT	Difference
Sharpe ratio: Return per unit of total volatility	1.64	2.07	-0.43
Sortino ratio: Return per unit of downside risk	2.17	2.48	-0.31
Omega ratio: Gain probability vs. loss probability	1.27	1.33	-0.05
Calmar ratio: Return relative to maximum drawdown	2.56	2.88	-0.32
Martin ratio: Return relative to average drawdown	6.64	10.02	-3.39

FAI vs. CHAT - Sharpe Ratio Comparison

The current FAI Sharpe Ratio is 1.64, which is comparable to the CHAT Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of FAI and CHAT, 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. CHAT - Drawdown Comparison

The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum CHAT drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for FAI and CHAT.

Drawdown Indicators

	FAI	CHAT	Difference
Max Drawdown Largest peak-to-trough decline	-27.82%	-31.34%	+3.52%
Max Drawdown (1Y) Largest decline over 1 year	-18.84%	-28.34%	+9.50%
Max Drawdown (3Y) Largest decline over 3 years	—	-31.34%	—
Current Drawdown Current decline from peak	-5.92%	-13.44%	+7.52%
Average Drawdown Average peak-to-trough decline	-5.78%	-5.75%	-0.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.26%	8.13%	-0.87%

Volatility

FAI vs. CHAT - Volatility Comparison

The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 10.83%, while Roundhill Generative AI & Technology ETF (CHAT) has a volatility of 17.38%. This indicates that FAI experiences smaller price fluctuations and is considered to be less risky than CHAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAI	CHAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.83%	17.38%	-6.55%
Volatility (6M) Calculated over the trailing 6-month period	25.10%	34.86%	-9.76%
Volatility (1Y) Calculated over the trailing 1-year period	29.50%	39.59%	-10.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.48%	32.59%	-1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.48%	32.59%	-1.11%

FAI vs. CHAT - Expense Ratio Comparison

FAI has a 0.65% expense ratio, which is lower than CHAT's 0.75% expense ratio.

Dividends

FAI vs. CHAT - Dividend Comparison

FAI has not paid dividends to shareholders, while CHAT's dividend yield for the trailing twelve months is around 1.87%.

Position	TTM	2025	2024
CHAT Roundhill Generative AI & Technology ETF	1.87%	2.85%	0.00%
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%

Frequently Asked Questions

Can I hold both FAI and CHAT in my portfolio?

With a correlation of 0.90, FAI and CHAT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FAI or CHAT?

CHAT has higher volatility (17.38%) compared to FAI (10.83%). In terms of maximum drawdown, FAI dropped -27.82% vs CHAT's -31.34%.

Which ETF is better, FAI or CHAT?

On 1-year performance, CHAT leads with 81.24% vs 48.02% for FAI. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 10.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAI or CHAT?

Over the 1-year period, CHAT has performed better with a 81.24% return vs 48.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAI or CHAT?

FAI is cheaper with a 0.65% expense ratio, compared with 0.75% for CHAT.

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

CHAT has the higher dividend yield at 1.87%, compared with 0.00% for FAI.

What is the main difference between FAI and CHAT?

They also come from different issuers: First Trust and Roundhill. Their fees differ too: 0.65% for FAI and 0.75% for CHAT.

Which has better risk-adjusted returns?

CHAT currently has the higher Sharpe Ratio (2.07 vs 1.64), 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.