FAI vs. PLTD

Last updated Jun 4, 2026

FAI (First Trust Bloomberg Artificial Intelligence ETF) and PLTD (Direxion Daily PLTR Bear 1X Shares) are both exchange-traded funds - FAI is a Technology Equities 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 76.77% vs -22.19% for PLTD. At a correlation of -0.62, they often move in opposite directions. FAI charges 0.65%/yr vs 0.98%/yr for PLTD.

Performance

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

Returns By Period

In the year-to-date period, FAI achieves a 39.08% return, which is significantly higher than PLTD's 13.23% return.

FAI

• 1D: -1.21%
• 1M: 21.45%
• YTD: 39.08%
• 6M: 37.64%
• 1Y: 76.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PLTD

• 1D: 6.63%
• 1M: -0.00%
• YTD: 13.23%
• 6M: 11.78%
• 1Y: -22.19%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FAI vs. PLTD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	39.08%	33.37%	-4.02%
PLTD Direxion Daily PLTR Bear 1X Shares	13.23%	-70.53%	-5.12%

Correlation

The correlation between FAI and PLTD is -0.55, 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	-0.55
Correlation (All Time) Calculated using the full available price history since Dec 12, 2024	-0.62

The correlation between FAI and PLTD has been stable across timeframes, ranging from -0.62 to -0.55 - a consistent structural relationship.

Return for Risk

FAI vs. PLTD — Risk / Return Rank

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

FAI

FAI Risk / Return Rank: 82
FAI Sharpe Ratio Rank: 91
FAI Sortino Ratio Rank: 84
FAI Omega Ratio Rank: 83
FAI Calmar Ratio Rank: 80
FAI Martin Ratio Rank: 72

PLTD

PLTD Risk / Return Rank: 5
PLTD Sharpe Ratio Rank: 5
PLTD Sortino Ratio Rank: 6
PLTD Omega Ratio Rank: 6
PLTD Calmar Ratio Rank: 5
PLTD Martin Ratio Rank: 6

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. 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.

	FAI	PLTD	Difference
Sharpe ratio: Return per unit of total volatility	3.16	-0.43	+3.59
Sortino ratio: Return per unit of downside risk	3.74	-0.34	+4.08
Omega ratio: Gain probability vs. loss probability	1.49	0.96	+0.53
Calmar ratio: Return relative to maximum drawdown	4.10	-0.50	+4.59
Martin ratio: Return relative to average drawdown	13.35	-0.74	+14.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FAI vs. PLTD - Sharpe Ratio Comparison

The current FAI Sharpe Ratio is 3.16, which is higher than the PLTD Sharpe Ratio of -0.43. The chart below compares the historical Sharpe Ratios of FAI and PLTD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FAI	PLTD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.16	-0.43	+3.59
Sharpe Ratio (All Time) Calculated using the full available price history	1.76	-0.86	+2.62

Drawdowns

FAI vs. PLTD - Drawdown Comparison

The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum PLTD drawdown of -77.34%. Use the drawdown chart below to compare losses from any high point for FAI and PLTD.

Drawdown Indicators

	FAI	PLTD	Difference
Max Drawdown Largest peak-to-trough decline	-27.82%	-77.34%	+49.52%
Max Drawdown (1Y) Largest decline over 1 year	-18.84%	-44.79%	+25.95%
Current Drawdown Current decline from peak	-1.21%	-71.01%	+69.80%
Average Drawdown Average peak-to-trough decline	-5.31%	-59.43%	+54.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.77%	30.14%	-24.37%

Volatility

FAI vs. PLTD - Volatility Comparison

The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 8.24%, while Direxion Daily PLTR Bear 1X Shares (PLTD) has a volatility of 18.68%. 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.

Volatility by Period

	FAI	PLTD	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.24%	18.68%	-10.44%
Volatility (6M) Calculated over the trailing 6-month period	19.31%	38.02%	-18.71%
Volatility (1Y) Calculated over the trailing 1-year period	24.40%	51.79%	-27.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.89%	63.73%	-33.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.89%	63.73%	-33.84%

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 3.26%.

Position	TTM	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%
PLTD Direxion Daily PLTR Bear 1X Shares	3.26%	5.17%	0.00%

Frequently Asked Questions

Can I hold both FAI and PLTD in my portfolio?

FAI and PLTD have a correlation of -0.55, 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 PLTD?

PLTD has higher volatility (18.68%) compared to FAI (8.24%). In terms of maximum drawdown, FAI dropped -27.82% vs PLTD's -77.34%.

Which ETF is better, FAI or PLTD?

On 1-year performance, FAI leads with 76.77% vs -22.19% for PLTD. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 8.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAI or PLTD?

Over the 1-year period, FAI has performed better with a 76.77% return vs -22.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAI or PLTD?

FAI is cheaper with a 0.65% expense ratio, compared with 0.98% for PLTD.

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

PLTD has the higher dividend yield at 3.26%, compared with 0.00% for FAI.

What is the main difference between FAI and PLTD?

FAI is categorized as Technology Equities, 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.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (3.16 vs -0.43), 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.