At a glance
FAI charges 0.65% a year, above the 0.63% average of the 8 funds most like it (the 5th cheapest of 9). It has $97.3M in assets, the 9th largest of that group. Its ten largest positions make up 62.0% of the fund, out of 50 in all.
The short version
First Trust Bloomberg Artificial Intelligence ETF (FAI) is an index fund that holds the 50 largest companies Bloomberg Intelligence rates as most tied to artificial intelligence. Most of its money sits in chipmakers such as Micron, AMD and SK Hynix. It charges 0.65% a year, close to the 0.63% average for similar funds. With $97 million in net assets as of June 30, 2026, it is the smallest of nine comparable AI funds.
Price history
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FAI — over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FAI official prospectus, to Dec 31, 2025 | — | +33.73% | — | — | — | +33.43% |
| FAI price data to Oct 27, 2026 | +5.3% | — | — | — | — | — |
- The deepest fall in its price history was 15.1% (Jun 18, 2026 to Jul 29, 2026), recovered by Aug 13, 2026.
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 62.01% of assets.
| Holding | Weight | |
|---|---|---|
| MICRON TECHNOLOGY INC | 8.77% | |
| ADVANCED MICRO DEVICES INC | 7.44% | |
| SK HYNIX INC | 7.41% | |
| ALPHABET INC | 6.73% | |
| BROADCOM INC | 6.68% | |
| AMAZON.COM INC | 6.33% | |
| NVIDIA CORP | 5.87% | |
| MARVELL TECHNOLOGY INC | 4.48% | |
| MICROSOFT CORP | 4.22% | |
| ASML HOLDING NV | 4.08% | |
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 3.72% | |
| ORACLE CORP | 2.79% | |
| META PLATFORMS INC | 2.73% | |
| PALANTIR TECHNOLOGIES INC | 2.19% | |
| SERVICENOW INC | 1.83% |
By country
United States 77.64%South Korea 7.41%Netherlands 5.84%Taiwan 5.38%Canada 1.24%By asset type
Stocks 98.08%By sector
Sectors of the companies held, for the 73.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $41.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +23.30%, +21.50%, -2.81%.
How it works
The fund aims to match, before fees, the Bloomberg Artificial Intelligence Index, run by Bloomberg Index Services Limited. First Trust, the adviser, has no say in which companies the index picks. The fund keeps at least 80% of net assets in index stocks and normally owns each at its index weight.
Bloomberg Intelligence analysts score companies in the Bloomberg World Aggregate Index, a broad global stock benchmark, on two measures: the share of revenue likely to come from artificial intelligence (AI) over the next 3 to 5 years, and its competitive position in AI. Scores run from 1 (highest) to 3. Companies need a combined score of 2 to 4 and must fall into application software, infrastructure software, hyperscalers (giant cloud platforms), hardware or semiconductors. The index picks the 50 largest by market value of freely traded shares among those whose revenue score is 1, meaning analysts expect more than 50% of revenue to come from AI. These are analyst judgments, not reported figures.
The result leans heavily on chip companies. As of June 30, 2026, the fund held 50 stocks and no derivatives, and the 10 largest made up 62% of assets. Micron Technology led at 8.8%, followed by Advanced Micro Devices and South Korea's SK Hynix at 7.4% each. About 78% was in US companies.
What it really costs
- FAI charges 0.65% a year, versus an average of 0.63% for the similar funds below (5th of 9, cheapest first).
In a retirement portfolio
FAI is a concentrated, chip-heavy bet on one theme, and it has moved more than twice as much as the broad market, so it may fit best as a small add-on to a diversified core.
FAI could add focused exposure to AI chip, software and cloud companies alongside a broad core fund. Its record is short. It launched on November 20, 2024, so it has no history through the 2008, 2020 or 2022 downturns. It returned 33.73% in 2025, but it lost 12.39% in the quarter ending March 31, 2025. Price data starts June 9, 2026. Within that data, its deepest drop was 15.1%, from June 18 to July 29, 2026, and it was back to its earlier peak by August 13, 2026. Its beta of 2.19 means its price has typically moved more than twice as much as the market. Someone forced to sell in a slump could lock in steep losses. It paid no income in the year to October 27, 2026, and it costs 0.65% a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small index-based AI slice, weighted toward chip stocks such as Micron, AMD, SK Hynix and Broadcom, next to a broad core fund.
- People who like analyst-screened rules: only companies that Bloomberg Intelligence expects to earn over half their revenue from AI can qualify.
- Long-term holders who can ride out sharp swings, such as the 12.39% quarterly loss in early 2025, without needing to sell.
Look elsewhere if
- Anyone who needs income from their holdings: FAI paid no distributions in the year to October 27, 2026.
- Cost-focused investors: Xtrackers XAIX charges 0.35% and iShares ARTY 0.47%, compared with FAI's 0.65%.
- Investors who want a long track record or a large fund: FAI launched in November 2024 and held $97 million as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FAI this fund | — | 0.65% | $97.3M | — | — |
| CHAT Roundhill Generative AI & Technology ETF | 49% | 0.75% | $1.78B | +24.9% | +48.7% |
| IGPT Invesco AI and Next Gen Software ETF | 47% | 0.58% | $1.11B | +49.3% | +43.8% |
| AGIX KraneShares Artificial Intelligence & Techn… | 46% | 1% | $807.4M | +15.4% | — |
| XAIX Xtrackers Artificial Intelligence and Big D… | 44% | 0.35% | $173.4M | +31.0% | — |
| ARTY iShares Future AI & Tech ETF | 44% | 0.47% | $3.93B | +43.4% | — |
| AIFD TCW Artificial Intelligence ETF | 42% | 0.75% | $125.3M | +33.8% | — |
| AIQ Global X Artificial Intelligence & Technolo… | 41% | 0.68% | $10.17B | +20.0% | +35.5% |
Questions investors ask
What stocks are in the FAI ETF?
As of June 30, 2026, FAI held 50 stocks, and the top ten made up 62% of assets. The largest were Micron (8.8%), AMD (7.4%), SK Hynix (7.4%), Alphabet (6.7%), Broadcom (6.7%), Amazon (6.3%) and Nvidia (5.9%). About 77.6% of assets were in US companies. South Korea, the Netherlands and Taiwan came next. Technology made up 57.5% of the holdings that had sector data.
Does FAI pay dividends?
No. FAI made no distributions in the year to October 27, 2026, and its trailing yield was 0%. The index it tracks counts dividends paid by its stocks, but the fund made no payouts to shareholders over that period. Its holdings are mostly growth-focused technology companies. Investors who need regular income may want to compare funds built for that purpose.
How has FAI performed since it launched?
FAI's results have been strong but bumpy. The fund's prospectus shows a 33.73% return in 2025, its first full calendar year, and a 33.43% average annual return from its November 20, 2024 launch through December 31, 2025. It lost 12.39% in the first quarter of 2025, then gained 30.49% in the second. Its price rose 12.6% in the three months to October 27, 2026. Past results don't predict future returns.
FAI vs CHAT: what's the difference?
Roundhill Generative AI & Technology ETF (CHAT) has the most holdings in common with FAI, with about 49% overlap. CHAT charges 0.75% a year, compared with FAI's 0.65%. CHAT is also much larger, with $1.78 billion in net assets as of July 31, 2026, against FAI's $97 million as of June 30, 2026. CHAT returned 24.9% over the year to October 27, 2026. FAI follows Bloomberg's rules-based AI index.
Is FAI too risky for a retirement account?
FAI carries more risk than a broad stock fund. Its beta of 2.19 means it has typically moved more than twice as much as the market. It is concentrated: the top ten holdings made up 62% of assets as of June 30, 2026, mostly chip and tech stocks. It fell 15.1% between June 18 and July 29, 2026, and it has never been through a full bear market. Funds like this often make up only a small part of a diversified portfolio.