FDL vs. FAI
FDL (First Trust Morningstar Dividend Leaders Index Fund) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both exchange-traded funds - FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index, while FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index. Both are passively managed. Over the past year, FDL returned 21.02% vs 66.20% for FAI. At a correlation of -0.03, they often move in opposite directions. FDL charges 0.43%/yr vs 0.65%/yr for FAI.
Performance
FDL vs. FAI - Performance Comparison
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Returns By Period
In the year-to-date period, FDL achieves a 11.33% return, which is significantly lower than FAI's 34.05% return.
FDL
- 1D
- -0.16%
- 1M
- -3.91%
- YTD
- 11.33%
- 6M
- 11.38%
- 1Y
- 21.02%
- 3Y*
- 18.63%
- 5Y*
- 12.95%
- 10Y*
- 10.99%
FAI
- 1D
- -0.48%
- 1M
- 7.16%
- YTD
- 34.05%
- 6M
- 33.89%
- 1Y
- 66.20%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
FDL vs. FAI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
FDL First Trust Morningstar Dividend Leaders Index Fund | 11.33% | 14.79% | -3.04% |
FAI First Trust Bloomberg Artificial Intelligence ETF | 34.05% | 33.37% | 2.28% |
Correlation
The correlation between FDL and FAI is -0.17, 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 | -0.17 |
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024 | -0.03 |
The correlation between FDL and FAI shifts across timeframes, from -0.17 (1 year) to -0.03 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
FDL vs. FAI — Risk / Return Rank
FDL
FAI
FDL vs. FAI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Morningstar Dividend Leaders Index Fund (FDL) and First Trust Bloomberg Artificial Intelligence ETF (FAI). 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.
| FDL | FAI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.63 | ||
| Sortino ratioReturn per unit of downside risk | -0.17 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.40 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 4.94 | 3.53 | +1.41 |
| Martin ratioReturn relative to average drawdown | 11.71 | 11.01 | +0.70 |
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Drawdowns
FDL vs. FAI - Drawdown Comparison
The maximum FDL drawdown since its inception was -65.93%, which is greater than FAI's maximum drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for FDL and FAI.
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Drawdown Indicators
| FDL | FAI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.93% | -27.82% | -38.11% |
Max Drawdown (1Y)Largest decline over 1 year | -4.27% | -18.84% | +14.57% |
Max Drawdown (3Y)Largest decline over 3 years | -12.24% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -16.46% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -41.40% | — | — |
Current DrawdownCurrent decline from peak | -4.24% | -4.79% | +0.55% |
Average DrawdownAverage peak-to-trough decline | -9.64% | -5.36% | -4.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.80% | 6.03% | -4.23% |
Volatility
FDL vs. FAI - Volatility Comparison
The current volatility for First Trust Morningstar Dividend Leaders Index Fund (FDL) is 3.52%, while First Trust Bloomberg Artificial Intelligence ETF (FAI) has a volatility of 13.67%. This indicates that FDL experiences smaller price fluctuations and is considered to be less risky than FAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FDL | FAI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.52% | 13.67% | -10.15% |
Volatility (6M)Calculated over the trailing 6-month period | 8.03% | 22.18% | -14.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.51% | 27.02% | -15.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.30% | 30.90% | -16.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.13% | 30.90% | -13.77% |
FDL vs. FAI - Expense Ratio Comparison
FDL has a 0.43% expense ratio, which is lower than FAI's 0.65% expense ratio.
Dividends
FDL vs. FAI - Dividend Comparison
FDL's dividend yield for the trailing twelve months is around 3.74%, while FAI has not paid dividends to shareholders.
| 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% |
FDL First Trust Morningstar Dividend Leaders Index Fund | 3.74% | 4.04% | 4.96% | 4.58% | 3.58% | 4.59% | 4.48% | 3.75% | 3.97% | 3.18% | 2.93% | 3.65% |
Frequently Asked Questions
FDL and FAI have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAI has higher volatility (13.67%) compared to FDL (3.52%). In terms of maximum drawdown, FDL dropped -65.93% vs FAI's -27.82%.
On 1-year performance, FAI leads with 66.20% vs 21.02% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 3.52%. 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 66.20% return vs 21.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FDL is cheaper with a 0.43% expense ratio, compared with 0.65% for FAI.
FDL has the higher dividend yield at 3.74%, compared with 0.00% for FAI.
FDL is categorized as Large Cap Value Equities, while FAI is Technology Equities. FDL tracks Morningstar Dividend Leaders Index, while FAI tracks Bloomberg Artificial Intelligence Index. Their fees differ too: 0.43% for FDL and 0.65% for FAI.
FAI currently has the higher Sharpe Ratio (2.47 vs 1.84), 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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