FAI vs. DRGN

Last updated Aug 5, 2026

FAI (First Trust Bloomberg Artificial Intelligence ETF) and DRGN (Themes China Generative Artificial Intelligence ETF) are both Artificial Intelligence funds - FAI tracks the Bloomberg Artificial Intelligence Index while DRGN tracks the BITA China Generative AI Select Index. Both are passively managed. Over the past year, FAI returned 48.02% vs 37.74% for DRGN. Their 0.49 correlation means their historical movements had little consistent relationship. FAI charges 0.65%/yr vs 0.39%/yr for DRGN.

Performance

FAI vs. DRGN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Bloomberg Artificial Intelligence ETF (FAI) and Themes China Generative Artificial Intelligence ETF (DRGN). 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 higher than DRGN's 13.71% return.

FAI

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

DRGN

• 1D: 4.60%
• 1M: 4.46%
• 6M: 5.58%
• YTD: 13.71%
• 1Y: 37.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 41.66%

*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)
DRGN Themes China Generative Artificial Intelligence ETF	$473.92K	$435.90K	$560.91K
FAI First Trust Bloomberg Artificial Intelligence ETF	$1.29M	$2.80M	$3.60M

FAI vs. DRGN - Yearly Performance Comparison

	2026 (YTD)	2025
FAI First Trust Bloomberg Artificial Intelligence ETF	32.45%	15.90%
DRGN Themes China Generative Artificial Intelligence ETF	13.71%	26.96%

Correlation

The correlation between FAI and DRGN is 0.49, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.49
Correlation (All Time) Calculated using the full available price history since Jul 15, 2025	0.49

Return for Risk

FAI vs. DRGN — 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

DRGN

DRGN Risk / Return Rank: 38
DRGN Sharpe Ratio Rank: 37
DRGN Sortino Ratio Rank: 38
DRGN Omega Ratio Rank: 36
DRGN Calmar Ratio Rank: 45
DRGN Martin Ratio Rank: 34

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. DRGN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Artificial Intelligence ETF (FAI) and Themes China Generative Artificial Intelligence ETF (DRGN). 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	DRGN	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.03	+0.61
Sortino ratio: Return per unit of downside risk	2.17	1.61	+0.56
Omega ratio: Gain probability vs. loss probability	1.27	1.19	+0.09
Calmar ratio: Return relative to maximum drawdown	2.56	1.82	+0.74
Martin ratio: Return relative to average drawdown	6.64	3.61	+3.02

FAI vs. DRGN - Sharpe Ratio Comparison

The current FAI Sharpe Ratio is 1.64, which is higher than the DRGN Sharpe Ratio of 1.03. The chart below compares the historical Sharpe Ratios of FAI and DRGN, 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. DRGN - Drawdown Comparison

The maximum FAI drawdown since its inception was -27.82%, which is greater than DRGN's maximum drawdown of -20.86%. Use the drawdown chart below to compare losses from any high point for FAI and DRGN.

Drawdown Indicators

	FAI	DRGN	Difference
Max Drawdown Largest peak-to-trough decline	-27.82%	-20.86%	-6.96%
Max Drawdown (1Y) Largest decline over 1 year	-18.84%	-20.86%	+2.02%
Current Drawdown Current decline from peak	-5.92%	-9.32%	+3.40%
Average Drawdown Average peak-to-trough decline	-5.78%	-8.41%	+2.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.26%	10.47%	-3.21%

Volatility

FAI vs. DRGN - Volatility Comparison

The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 10.83%, while Themes China Generative Artificial Intelligence ETF (DRGN) has a volatility of 12.67%. This indicates that FAI experiences smaller price fluctuations and is considered to be less risky than DRGN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAI	DRGN	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.83%	12.67%	-1.84%
Volatility (6M) Calculated over the trailing 6-month period	25.10%	26.15%	-1.05%
Volatility (1Y) Calculated over the trailing 1-year period	29.50%	36.79%	-7.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.48%	36.16%	-4.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.48%	36.16%	-4.68%

FAI vs. DRGN - Expense Ratio Comparison

FAI has a 0.65% expense ratio, which is higher than DRGN's 0.39% expense ratio.

Dividends

FAI vs. DRGN - Dividend Comparison

FAI has not paid dividends to shareholders, while DRGN's dividend yield for the trailing twelve months is around 1.07%.

Position	TTM	2025	2024
DRGN Themes China Generative Artificial Intelligence ETF	1.07%	1.22%	0.00%
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%

Frequently Asked Questions

Can I hold both FAI and DRGN in my portfolio?

FAI and DRGN have a correlation of 0.49, 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 DRGN?

DRGN has higher volatility (12.67%) compared to FAI (10.83%). In terms of maximum drawdown, FAI dropped -27.82% vs DRGN's -20.86%.

Which ETF is better, FAI or DRGN?

On 1-year performance, FAI leads with 48.02% vs 37.74% for DRGN. On fees, DRGN is cheaper at 0.39% 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 DRGN?

Over the 1-year period, FAI has performed better with a 48.02% return vs 37.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAI or DRGN?

DRGN is cheaper with a 0.39% expense ratio, compared with 0.65% for FAI.

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

DRGN has the higher dividend yield at 1.07%, compared with 0.00% for FAI.

What is the main difference between FAI and DRGN?

FAI tracks Bloomberg Artificial Intelligence Index, while DRGN tracks BITA China Generative AI Select Index. They also come from different issuers: First Trust and Themes. Their fees differ too: 0.65% for FAI and 0.39% for DRGN.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (1.64 vs 1.03), 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.