FAI vs. PLTD
FAI (First Trust Bloomberg Artificial Intelligence ETF) and PLTD (Direxion Daily PLTR Bear 1X Shares) are both exchange-traded funds - FAI is a Artificial Intelligence fund tracking the Bloomberg Artificial Intelligence Index, while PLTD is a Inverse Equities fund tracking the Palantir Technologies Inc. (-100%). Both are passively managed. Over the past year, FAI returned 48.02% vs -25.27% for PLTD. Their -0.58 correlation means they have often moved in opposite directions in the past. FAI charges 0.65%/yr vs 0.98%/yr for PLTD.
Performance
FAI vs. PLTD - Performance Comparison
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Returns By Period
In the year-to-date period, FAI achieves a 32.45% return, which is significantly higher than PLTD's -12.10% return.
FAI
- 1D
- 4.39%
- 1M
- 5.49%
- 6M
- 34.12%
- YTD
- 32.45%
- 1Y
- 48.02%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 41.61%
PLTD
- 1D
- -29.21%
- 1M
- -28.14%
- 6M
- -20.86%
- YTD
- -12.10%
- 1Y
- -25.27%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- -57.38%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.29M | $2.80M | $3.60M | |
| $298.92M | $328.30M | $343.18M |
FAI vs. PLTD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 32.45% | 33.37% | -2.32% |
PLTD Direxion Daily PLTR Bear 1X Shares | -12.10% | -70.53% | -5.12% |
Correlation
The correlation between FAI and PLTD is -0.49, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| 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 Dec 11, 2024 | -0.58 |
The correlation between FAI and PLTD has been stable across timeframes, ranging from -0.58 to -0.49 - a consistent structural relationship.
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Return for Risk
FAI vs. PLTD — Risk / Return Rank
FAI
PLTD
FAI vs. PLTD - 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 PLTR Bear 1X Shares (PLTD). 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 | PLTD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.06 | ||
| Sortino ratioReturn per unit of downside risk | +2.39 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 0.97 | +0.30 |
| Calmar ratioReturn relative to maximum drawdown | 2.56 | -0.62 | +3.18 |
| Martin ratioReturn relative to average drawdown | 6.64 | -1.77 | +8.40 |
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Drawdowns
FAI vs. PLTD - Drawdown Comparison
The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum PLTD drawdown of -77.49%. Use the drawdown chart below to compare losses from any high point for FAI and PLTD.
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Drawdown Indicators
| FAI | PLTD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.82% | -77.49% | +49.67% |
Max Drawdown (1Y)Largest decline over 1 year | -18.84% | -40.73% | +21.89% |
Current DrawdownCurrent decline from peak | -5.92% | -77.49% | +71.57% |
Average DrawdownAverage peak-to-trough decline | -5.78% | -60.19% | +54.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.26% | 14.49% | -7.23% |
Volatility
FAI vs. PLTD - Volatility Comparison
The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 10.83%, while Direxion Daily PLTR Bear 1X Shares (PLTD) has a volatility of 37.20%. This indicates that FAI experiences smaller price fluctuations and is considered to be less risky than PLTD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAI | PLTD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.83% | 37.20% | -26.37% |
Volatility (6M)Calculated over the trailing 6-month period | 25.10% | 52.97% | -27.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.50% | 60.05% | -30.55% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 31.48% | 66.54% | -35.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.48% | 66.54% | -35.06% |
FAI vs. PLTD - Expense Ratio Comparison
FAI has a 0.65% expense ratio, which is lower than PLTD's 0.98% expense ratio.
Dividends
FAI vs. PLTD - Dividend Comparison
FAI has not paid dividends to shareholders, while PLTD's dividend yield for the trailing twelve months is around 3.99%.
| Position | TTM | 2025 | 2024 |
|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 0.00% | 0.00% | 0.04% |
PLTD Direxion Daily PLTR Bear 1X Shares | 3.99% | 5.17% | 0.00% |
Frequently Asked Questions
FAI and PLTD 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.
PLTD has higher volatility (37.20%) compared to FAI (10.83%). In terms of maximum drawdown, FAI dropped -27.82% vs PLTD's -77.49%.
On 1-year performance, FAI leads with 48.02% vs -25.27% for PLTD. 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.
Over the 1-year period, FAI has performed better with a 48.02% return vs -25.27%. 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 0.98% for PLTD.
PLTD has the higher dividend yield at 3.99%, compared with 0.00% for FAI.
FAI is categorized as Artificial Intelligence, while PLTD is Inverse Equities. FAI tracks Bloomberg Artificial Intelligence Index, while PLTD tracks Palantir Technologies Inc. (-100%). They also come from different issuers: First Trust and Direxion. Their fees differ too: 0.65% for FAI and 0.98% for PLTD.
FAI currently has the higher Sharpe Ratio (1.64 vs -0.42), 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.
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