LBAY vs. FAI

Last updated Jun 23, 2026

LBAY (Leatherback Long/Short Alternative Yield ETF) and FAI (First Trust Bloomberg Artificial Intelligence ETF) are both exchange-traded funds - LBAY is a Long-Short fund actively managed by Toroso Investments, while FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index. LBAY is actively managed, while FAI is passively managed. Over the past year, LBAY returned 3.91% vs 66.20% for FAI. At a correlation of -0.28, they often move in opposite directions. LBAY charges 1.09%/yr vs 0.65%/yr for FAI.

Performance

LBAY vs. FAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Leatherback Long/Short Alternative Yield ETF (LBAY) 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, LBAY achieves a 2.94% return, which is significantly lower than FAI's 34.05% return.

LBAY

• 1D: -0.82%
• 1M: -4.77%
• YTD: 2.94%
• 6M: 3.57%
• 1Y: 3.91%
• 3Y*: 1.80%
• 5Y*: 4.52%
• 10Y*: —

FAI

• 1D: -0.48%
• 1M: 7.16%
• YTD: 34.05%
• 6M: 33.89%
• 1Y: 66.20%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

LBAY vs. FAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LBAY Leatherback Long/Short Alternative Yield ETF	2.94%	4.08%	-7.15%
FAI First Trust Bloomberg Artificial Intelligence ETF	34.05%	33.37%	2.28%

Correlation

The correlation between LBAY and FAI is -0.34, 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	-0.34
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	-0.28

Return for Risk

LBAY vs. FAI — Risk / Return Rank

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

LBAY

LBAY Risk / Return Rank: 11
LBAY Sharpe Ratio Rank: 12
LBAY Sortino Ratio Rank: 11
LBAY Omega Ratio Rank: 11
LBAY Calmar Ratio Rank: 11
LBAY Martin Ratio Rank: 12

FAI

FAI Risk / Return Rank: 70
FAI Sharpe Ratio Rank: 80
FAI Sortino Ratio Rank: 67
FAI Omega Ratio Rank: 70
FAI Calmar Ratio Rank: 72
FAI Martin Ratio Rank: 62

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.

LBAY vs. FAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Leatherback Long/Short Alternative Yield ETF (LBAY) 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.

	LBAY	FAI	Difference
Sharpe ratio: Return per unit of total volatility	0.25	2.47	-2.22
Sortino ratio: Return per unit of downside risk	0.49	2.97	-2.48
Omega ratio: Gain probability vs. loss probability	1.06	1.40	-0.35
Calmar ratio: Return relative to maximum drawdown	0.29	3.53	-3.24
Martin ratio: Return relative to average drawdown	0.74	11.01	-10.27

LBAY vs. FAI - Sharpe Ratio Comparison

The current LBAY Sharpe Ratio is 0.25, which is lower than the FAI Sharpe Ratio of 2.47. The chart below compares the historical Sharpe Ratios of LBAY 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

LBAY vs. FAI - Drawdown Comparison

The maximum LBAY drawdown since its inception was -15.99%, smaller than the maximum FAI drawdown of -27.82%. Use the drawdown chart below to compare losses from any high point for LBAY and FAI.

Drawdown Indicators

	LBAY	FAI	Difference
Max Drawdown Largest peak-to-trough decline	-15.99%	-27.82%	+11.83%
Max Drawdown (1Y) Largest decline over 1 year	-13.61%	-18.84%	+5.23%
Max Drawdown (3Y) Largest decline over 3 years	-14.57%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.99%	—	—
Current Drawdown Current decline from peak	-13.61%	-4.79%	-8.82%
Average Drawdown Average peak-to-trough decline	-6.83%	-5.36%	-1.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.27%	6.03%	-0.76%

Volatility

LBAY vs. FAI - Volatility Comparison

The current volatility for Leatherback Long/Short Alternative Yield ETF (LBAY) is 4.08%, while First Trust Bloomberg Artificial Intelligence ETF (FAI) has a volatility of 13.67%. This indicates that LBAY 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.

Volatility by Period

	LBAY	FAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	13.67%	-9.59%
Volatility (6M) Calculated over the trailing 6-month period	12.54%	22.18%	-9.64%
Volatility (1Y) Calculated over the trailing 1-year period	15.64%	27.02%	-11.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.56%	30.90%	-17.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.76%	30.90%	-17.14%

LBAY vs. FAI - Expense Ratio Comparison

LBAY has a 1.09% expense ratio, which is higher than FAI's 0.65% expense ratio.

Dividends

LBAY vs. FAI - Dividend Comparison

LBAY's dividend yield for the trailing twelve months is around 3.93%, while FAI has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
FAI First Trust Bloomberg Artificial Intelligence ETF	0.00%	0.00%	0.04%	0.00%	0.00%	0.00%	0.00%
LBAY Leatherback Long/Short Alternative Yield ETF	3.93%	3.80%	3.77%	3.47%	2.74%	2.96%	0.29%

Frequently Asked Questions

Can I hold both LBAY and FAI in my portfolio?

LBAY and FAI have a correlation of -0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LBAY or FAI?

FAI has higher volatility (13.67%) compared to LBAY (4.08%). In terms of maximum drawdown, LBAY dropped -15.99% vs FAI's -27.82%.

Which ETF is better, LBAY or FAI?

On 1-year performance, FAI leads with 66.20% vs 3.91% for LBAY. On fees, FAI is cheaper at 0.65% per year. On volatility, LBAY has been the lower-risk option at 4.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LBAY or FAI?

Over the 1-year period, FAI has performed better with a 66.20% return vs 3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LBAY or FAI?

FAI is cheaper with a 0.65% expense ratio, compared with 1.09% for LBAY.

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

LBAY has the higher dividend yield at 3.93%, compared with 0.00% for FAI.

What is the main difference between LBAY and FAI?

LBAY is categorized as Long-Short, while FAI is Technology Equities. They also come from different issuers: Toroso Investments and First Trust. Their fees differ too: 1.09% for LBAY and 0.65% for FAI.

Which has better risk-adjusted returns?

FAI currently has the higher Sharpe Ratio (2.47 vs 0.25), 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.