FNGD vs. FAI

Last updated Jul 14, 2026

FNGD (MicroSectors FANG+™ Index -3X Inverse Leveraged ETN) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both exchange-traded funds - FNGD is a Leveraged Equities fund tracking the NYSE FANG+ Index (-300%), while FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index. Both are passively managed. Over the past year, FNGD returned -49.24% vs 45.43% for FAI. At a correlation of -0.89, they often move in opposite directions. FNGD charges 0.95%/yr vs 0.65%/yr for FAI.

Performance

FNGD vs. FAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MicroSectors FANG+™ Index -3X Inverse Leveraged ETN (FNGD) and First Trust Bloomberg Artificial Intelligence ETF (FAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNGD achieves a -35.56% return, which is significantly lower than FAI's 25.03% return.

FNGD

• 1D: 2.44%
• 1M: -11.47%
• 6M: -35.07%
• YTD: -35.56%
• 1Y: -49.24%
• 3Y*: -65.19%
• 5Y*: -62.88%
• 10Y*: —

FAI

• 1D: -3.00%
• 1M: -2.33%
• 6M: 21.21%
• YTD: 25.03%
• 1Y: 45.43%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FNGD vs. FAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FNGD MicroSectors FANG+™ Index -3X Inverse Leveraged ETN	-35.56%	-61.42%	-17.91%
FAI First Trust Bloomberg Artificial Intelligence ETF	25.03%	33.37%	2.28%

Correlation

The correlation between FNGD and FAI is -0.86, 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	-0.86
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.89

The correlation between FNGD and FAI has been stable across timeframes, ranging from -0.89 to -0.86 - a consistent structural relationship.

Return for Risk

FNGD vs. FAI — Risk / Return Rank

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

FNGD

FNGD Risk / Return Rank: 3
FNGD Sharpe Ratio Rank: 3
FNGD Sortino Ratio Rank: 3
FNGD Omega Ratio Rank: 4
FNGD Calmar Ratio Rank: 3
FNGD Martin Ratio Rank: 1

FAI

FAI Risk / Return Rank: 57
FAI Sharpe Ratio Rank: 61
FAI Sortino Ratio Rank: 55
FAI Omega Ratio Rank: 55
FAI Calmar Ratio Rank: 61
FAI Martin Ratio Rank: 52

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.

FNGD vs. FAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MicroSectors FANG+™ Index -3X Inverse Leveraged ETN (FNGD) 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.

	FNGD	FAI	Difference
Sharpe ratio: Return per unit of total volatility	-0.76	1.62	-2.38
Sortino ratio: Return per unit of downside risk	-1.00	2.10	-3.10
Omega ratio: Gain probability vs. loss probability	0.89	1.28	-0.39
Calmar ratio: Return relative to maximum drawdown	-0.75	2.42	-3.17
Martin ratio: Return relative to average drawdown	-1.52	7.10	-8.62

FNGD vs. FAI - Sharpe Ratio Comparison

The current FNGD Sharpe Ratio is -0.76, which is lower than the FAI Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of FNGD and FAI, 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

FNGD vs. FAI - Drawdown Comparison

The maximum FNGD drawdown since its inception was -100.00%, which is greater than FAI's maximum drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for FNGD and FAI.

Drawdown Indicators

	FNGD	FAI	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-27.82%	-72.18%
Max Drawdown (1Y) Largest decline over 1 year	-65.92%	-18.84%	-47.08%
Max Drawdown (3Y) Largest decline over 3 years	-97.35%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-99.67%	—	—
Current Drawdown Current decline from peak	-100.00%	-11.19%	-88.81%
Average Drawdown Average peak-to-trough decline	-87.38%	-5.50%	-81.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	32.60%	6.42%	+26.18%

Volatility

FNGD vs. FAI - Volatility Comparison

MicroSectors FANG+™ Index -3X Inverse Leveraged ETN (FNGD) has a higher volatility of 25.56% compared to First Trust Bloomberg Artificial Intelligence ETF (FAI) at 11.91%. This indicates that FNGD's price experiences larger fluctuations and is considered to be riskier than FAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNGD	FAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.56%	11.91%	+13.65%
Volatility (6M) Calculated over the trailing 6-month period	53.43%	23.73%	+29.70%
Volatility (1Y) Calculated over the trailing 1-year period	65.22%	28.22%	+37.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	89.65%	31.18%	+58.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	91.07%	31.18%	+59.89%

FNGD vs. FAI - Expense Ratio Comparison

FNGD has a 0.95% expense ratio, which is higher than FAI's 0.65% expense ratio.

Dividends

FNGD vs. FAI - Dividend Comparison

Neither FNGD nor FAI has paid dividends to shareholders.

Position	TTM	2025	2024
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%
FNGD MicroSectors FANG+™ Index -3X Inverse Leveraged ETN	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FNGD and FAI in my portfolio?

FNGD and FAI have a correlation of -0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNGD or FAI?

FNGD has higher volatility (25.56%) compared to FAI (11.91%). In terms of maximum drawdown, FNGD dropped -100.00% vs FAI's -27.82%.

Which ETF is better, FNGD or FAI?

On 1-year performance, FAI leads with 45.43% vs -49.24% for FNGD. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 11.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNGD or FAI?

Over the 1-year period, FAI has performed better with a 45.43% return vs -49.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNGD or FAI?

FAI is cheaper with a 0.65% expense ratio, compared with 0.95% for FNGD.

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

FNGD and FAI have nearly identical dividend yields, around 0.00%.

What is the main difference between FNGD and FAI?

FNGD is categorized as Leveraged Equities, while FAI is Technology Equities. FNGD tracks NYSE FANG+ Index (-300%), while FAI tracks Bloomberg Artificial Intelligence Index. They also come from different issuers: BMO and First Trust. Their fees differ too: 0.95% for FNGD and 0.65% for FAI.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (1.62 vs -0.76), 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.