FAI vs. MSFD

Last updated Jun 24, 2026

FAI (First Trust Bloomberg Artificial Intelligence ETF) and MSFD (Direxion Daily MSFT Bear 1X Shares) are both exchange-traded funds - FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index, while MSFD is a Inverse Equities fund tracking the Microsoft Corporation (-100%). Both are passively managed. Over the past year, FAI returned 56.66% vs 26.45% for MSFD. At a correlation of -0.60, they often move in opposite directions. FAI charges 0.65%/yr vs 1.06%/yr for MSFD.

Performance

FAI vs. MSFD - 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 MSFT Bear 1X Shares (MSFD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAI achieves a 27.58% return, which is significantly higher than MSFD's 24.19% return.

FAI

• 1D: -4.82%
• 1M: 1.99%
• YTD: 27.58%
• 6M: 26.62%
• 1Y: 56.66%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSFD

• 1D: -3.08%
• 1M: 9.58%
• YTD: 24.19%
• 6M: 25.23%
• 1Y: 26.45%
• 3Y*: -3.55%
• 5Y*: —
• 10Y*: —

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

FAI vs. MSFD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	27.58%	33.37%	2.28%
MSFD Direxion Daily MSFT Bear 1X Shares	24.19%	-13.36%	-1.24%

Correlation

The correlation between FAI and MSFD is -0.50, 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	-0.50
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.60

The correlation between FAI and MSFD shifts across timeframes, from -0.60 (all time) to -0.50 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FAI vs. MSFD — Risk / Return Rank

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

FAI

FAI Risk / Return Rank: 64
FAI Sharpe Ratio Rank: 71
FAI Sortino Ratio Rank: 60
FAI Omega Ratio Rank: 63
FAI Calmar Ratio Rank: 67
FAI Martin Ratio Rank: 58

MSFD

MSFD Risk / Return Rank: 29
MSFD Sharpe Ratio Rank: 30
MSFD Sortino Ratio Rank: 32
MSFD Omega Ratio Rank: 32
MSFD Calmar Ratio Rank: 25
MSFD Martin Ratio Rank: 28

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. MSFD - 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 MSFT Bear 1X Shares (MSFD). 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	MSFD	Difference
Sharpe ratio: Return per unit of total volatility	2.08	1.01	+1.06
Sortino ratio: Return per unit of downside risk	2.56	1.63	+0.93
Omega ratio: Gain probability vs. loss probability	1.35	1.20	+0.14
Calmar ratio: Return relative to maximum drawdown	3.02	1.14	+1.88
Martin ratio: Return relative to average drawdown	9.38	3.69	+5.69

FAI vs. MSFD - Sharpe Ratio Comparison

The current FAI Sharpe Ratio is 2.08, which is higher than the MSFD Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of FAI and MSFD, 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. MSFD - Drawdown Comparison

The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum MSFD drawdown of -59.90%. Use the drawdown chart below to compare losses from any high point for FAI and MSFD.

Drawdown Indicators

	FAI	MSFD	Difference
Max Drawdown Largest peak-to-trough decline	-27.82%	-59.90%	+32.08%
Max Drawdown (1Y) Largest decline over 1 year	-18.84%	-23.25%	+4.41%
Max Drawdown (3Y) Largest decline over 3 years	—	-40.50%	—
Current Drawdown Current decline from peak	-9.38%	-43.99%	+34.61%
Average Drawdown Average peak-to-trough decline	-5.37%	-41.61%	+36.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.06%	7.35%	-1.29%

Volatility

FAI vs. MSFD - Volatility Comparison

First Trust Bloomberg Artificial Intelligence ETF (FAI) has a higher volatility of 14.67% compared to Direxion Daily MSFT Bear 1X Shares (MSFD) at 11.74%. This indicates that FAI's price experiences larger fluctuations and is considered to be riskier than MSFD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAI	MSFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.67%	11.74%	+2.93%
Volatility (6M) Calculated over the trailing 6-month period	22.72%	22.81%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	27.43%	26.33%	+1.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.12%	26.27%	+4.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.12%	26.27%	+4.85%

FAI vs. MSFD - Expense Ratio Comparison

FAI has a 0.65% expense ratio, which is lower than MSFD's 1.06% expense ratio.

Dividends

FAI vs. MSFD - Dividend Comparison

FAI has not paid dividends to shareholders, while MSFD's dividend yield for the trailing twelve months is around 2.52%.

Position	TTM	2025	2024	2023	2022
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%	0.00%	0.00%
MSFD Direxion Daily MSFT Bear 1X Shares	2.52%	3.33%	4.46%	4.43%	0.74%

Frequently Asked Questions

Can I hold both FAI and MSFD in my portfolio?

FAI and MSFD have a correlation of -0.50, 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 MSFD?

FAI has higher volatility (14.67%) compared to MSFD (11.74%). In terms of maximum drawdown, FAI dropped -27.82% vs MSFD's -59.90%.

Which ETF is better, FAI or MSFD?

On 1-year performance, FAI leads with 56.66% vs 26.45% for MSFD. On fees, FAI is cheaper at 0.65% per year. On volatility, MSFD has been the lower-risk option at 11.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAI or MSFD?

Over the 1-year period, FAI has performed better with a 56.66% return vs 26.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAI or MSFD?

FAI is cheaper with a 0.65% expense ratio, compared with 1.06% for MSFD.

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

MSFD has the higher dividend yield at 2.52%, compared with 0.00% for FAI.

What is the main difference between FAI and MSFD?

FAI is categorized as Technology Equities, while MSFD is Inverse Equities. FAI tracks Bloomberg Artificial Intelligence Index, while MSFD tracks Microsoft Corporation (-100%). They also come from different issuers: First Trust and Direxion. Their fees differ too: 0.65% for FAI and 1.06% for MSFD.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (2.08 vs 1.01), 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.