FAI vs. NXTG
FAI (First Trust Bloomberg Artificial Intelligence ETF) and NXTG (First Trust IndXX NextG ETF) are both Technology Equities funds from First Trust - FAI tracks the Bloomberg Artificial Intelligence Index while NXTG tracks the Indxx 5G & NextG Thematic Index. Both are passively managed. Over the past year, FAI returned 72.81% vs 78.10% for NXTG. A 0.77 correlation means they provide meaningful diversification when combined. FAI charges 0.65%/yr vs 0.70%/yr for NXTG.
Performance
FAI vs. NXTG - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAI achieves a 36.77% return, which is significantly lower than NXTG's 51.79% return.
FAI
- 1D
- -1.66%
- 1M
- 17.27%
- YTD
- 36.77%
- 6M
- 35.51%
- 1Y
- 72.81%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
NXTG
- 1D
- -1.78%
- 1M
- 17.41%
- YTD
- 51.79%
- 6M
- 52.46%
- 1Y
- 78.10%
- 3Y*
- 35.00%
- 5Y*
- 18.74%
- 10Y*
- 17.57%
FAI vs. NXTG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 36.77% | 33.37% | 2.06% |
NXTG First Trust IndXX NextG ETF | 51.79% | 28.46% | 1.43% |
Correlation
The correlation between FAI and NXTG is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024 | 0.77 |
The correlation between FAI and NXTG has been stable across timeframes, ranging from 0.77 to 0.81 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FAI vs. NXTG — Risk / Return Rank
FAI
NXTG
FAI vs. NXTG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Artificial Intelligence ETF (FAI) and First Trust IndXX NextG ETF (NXTG). 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.
| FAI | NXTG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.24 | ||
| Sortino ratioReturn per unit of downside risk | -1.80 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.73 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 3.88 | 7.64 | -3.76 |
| Martin ratioReturn relative to average drawdown | 12.65 | 29.86 | -17.21 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| FAI | NXTG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.99 | 4.24 | -1.24 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 1.05 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.93 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.70 | 0.68 | +1.02 |
Drawdowns
FAI vs. NXTG - Drawdown Comparison
The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum NXTG drawdown of -33.61%. Use the drawdown chart below to compare losses from any high point for FAI and NXTG.
Loading charts...
Drawdown Indicators
| FAI | NXTG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.82% | -33.61% | +5.79% |
Max Drawdown (1Y)Largest decline over 1 year | -18.84% | -10.28% | -8.56% |
Max Drawdown (3Y)Largest decline over 3 years | — | -17.75% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -33.61% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.61% | — |
Current DrawdownCurrent decline from peak | -2.85% | -2.59% | -0.26% |
Average DrawdownAverage peak-to-trough decline | -5.30% | -7.87% | +2.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.77% | 2.62% | +3.15% |
Volatility
FAI vs. NXTG - Volatility Comparison
First Trust Bloomberg Artificial Intelligence ETF (FAI) and First Trust IndXX NextG ETF (NXTG) have volatilities of 8.57% and 8.51%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FAI | NXTG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.57% | 8.51% | +0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 19.40% | 15.41% | +3.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.47% | 18.54% | +5.93% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.89% | 17.94% | +11.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.89% | 18.88% | +11.01% |
FAI vs. NXTG - Expense Ratio Comparison
FAI has a 0.65% expense ratio, which is lower than NXTG's 0.70% expense ratio.
Dividends
FAI vs. NXTG - Dividend Comparison
FAI has not paid dividends to shareholders, while NXTG's dividend yield for the trailing twelve months is around 1.13%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 0.00% | 0.00% | 0.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
NXTG First Trust IndXX NextG ETF | 1.13% | 1.56% | 1.51% | 2.15% | 2.04% | 1.97% | 1.04% | 0.77% | 1.27% | 1.65% | 1.23% | 1.11% |
Frequently Asked Questions
FAI and NXTG have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAI has higher volatility (8.57%) compared to NXTG (8.51%). In terms of maximum drawdown, FAI dropped -27.82% vs NXTG's -33.61%.
On 1-year performance, NXTG leads with 78.10% vs 72.81% for FAI. On fees, FAI is cheaper at 0.65% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, NXTG has performed better with a 78.10% return vs 72.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAI is cheaper with a 0.65% expense ratio, compared with 0.70% for NXTG.
NXTG has the higher dividend yield at 1.13%, compared with 0.00% for FAI.
FAI tracks Bloomberg Artificial Intelligence Index, while NXTG tracks Indxx 5G & NextG Thematic Index. Their fees differ too: 0.65% for FAI and 0.70% for NXTG.
NXTG currently has the higher Sharpe Ratio (4.24 vs 2.99), 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.
Find the right allocation for FAI and NXTG
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer