HDLB vs. FAI
HDLB (ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both exchange-traded funds - HDLB is a Leveraged Equities fund tracking the Solactive US High Dividend Low Volatility (USD)(TR) (200%), while FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index. Both are passively managed. Over the past year, HDLB returned 18.01% vs 56.66% for FAI. At a correlation of -0.10, they often move in opposite directions. HDLB charges 1.65%/yr vs 0.65%/yr for FAI.
Performance
HDLB vs. FAI - Performance Comparison
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Returns By Period
In the year-to-date period, HDLB achieves a 12.54% return, which is significantly lower than FAI's 27.58% return.
HDLB
- 1D
- 4.54%
- 1M
- -2.98%
- YTD
- 12.54%
- 6M
- 14.64%
- 1Y
- 18.01%
- 3Y*
- 28.22%
- 5Y*
- 12.53%
- 10Y*
- —
FAI
- 1D
- -4.82%
- 1M
- 1.99%
- YTD
- 27.58%
- 6M
- 26.62%
- 1Y
- 56.66%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
HDLB vs. FAI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
HDLB ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B | 12.54% | 27.26% | -10.39% |
FAI First Trust Bloomberg Artificial Intelligence ETF | 27.58% | 33.37% | 2.28% |
Correlation
The correlation between HDLB and FAI is -0.20, 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 | -0.20 |
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024 | -0.10 |
The correlation between HDLB and FAI shifts across timeframes, from -0.20 (1 year) to -0.10 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
HDLB vs. FAI — Risk / Return Rank
HDLB
FAI
HDLB vs. FAI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B (HDLB) 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.
| HDLB | FAI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.41 | ||
| Sortino ratioReturn per unit of downside risk | -1.46 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.35 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 1.12 | 3.02 | -1.90 |
| Martin ratioReturn relative to average drawdown | 2.52 | 9.38 | -6.85 |
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Drawdowns
HDLB vs. FAI - Drawdown Comparison
The maximum HDLB drawdown since its inception was -78.70%, which is greater than FAI's maximum drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for HDLB and FAI.
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Drawdown Indicators
| HDLB | FAI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.70% | -27.82% | -50.88% |
Max Drawdown (1Y)Largest decline over 1 year | -16.17% | -18.84% | +2.67% |
Max Drawdown (3Y)Largest decline over 3 years | -22.46% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -43.81% | — | — |
Current DrawdownCurrent decline from peak | -11.92% | -9.38% | -2.54% |
Average DrawdownAverage peak-to-trough decline | -27.33% | -5.37% | -21.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.15% | 6.06% | +1.09% |
Volatility
HDLB vs. FAI - Volatility Comparison
The current volatility for ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B (HDLB) is 9.49%, while First Trust Bloomberg Artificial Intelligence ETF (FAI) has a volatility of 14.67%. This indicates that HDLB 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
| HDLB | FAI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.49% | 14.67% | -5.18% |
Volatility (6M)Calculated over the trailing 6-month period | 19.68% | 22.72% | -3.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.28% | 27.43% | -0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.69% | 31.12% | -0.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 43.52% | 31.12% | +12.40% |
HDLB vs. FAI - Expense Ratio Comparison
HDLB has a 1.65% expense ratio, which is higher than FAI's 0.65% expense ratio.
Dividends
HDLB vs. FAI - Dividend Comparison
HDLB's dividend yield for the trailing twelve months is around 11.27%, while FAI has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 0.00% | 0.00% | 0.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
HDLB ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B | 11.27% | 12.20% | 10.09% | 12.36% | 10.86% | 8.07% | 16.23% | 0.97% |
Frequently Asked Questions
HDLB and FAI have a correlation of -0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAI has higher volatility (14.67%) compared to HDLB (9.49%). In terms of maximum drawdown, HDLB dropped -78.70% vs FAI's -27.82%.
On 1-year performance, FAI leads with 56.66% vs 18.01% for HDLB. On fees, FAI is cheaper at 0.65% per year. On volatility, HDLB has been the lower-risk option at 9.49%. 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 56.66% return vs 18.01%. 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 1.65% for HDLB.
HDLB has the higher dividend yield at 11.27%, compared with 0.00% for FAI.
HDLB is categorized as Leveraged Equities, while FAI is Technology Equities. HDLB tracks Solactive US High Dividend Low Volatility (USD)(TR) (200%), while FAI tracks Bloomberg Artificial Intelligence Index. They also come from different issuers: UBS and First Trust. Their fees differ too: 1.65% for HDLB and 0.65% for FAI.
FAI currently has the higher Sharpe Ratio (2.08 vs 0.66), 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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