FAI vs IVV
First Trust Bloomberg Artificial Intelligence ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. FAI delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | FAI | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.03% | |
| AUM | $175M | $907.0B | |
| Dividend Yield | 0.00% | 1.10% | |
| Holdings | 54 | 508 | |
| YTD Return | +29.19% | +13.22% | |
| 1Y Return | +46.22% | +21.62% | |
| 3Y Return (annualized) | - | +22.17% | |
| 5Y Return (annualized) | - | +13.42% | |
| Volatility (annualized) | 31.4% | 15.1% | |
| Max Drawdown | -27.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2024 | May 15, 2000 |
FAI vs IVV Performance
First Trust Bloomberg Artificial Intelligence ETF (FAI) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FAI returned +46.22% while IVV returned +21.62%. Year to date, FAI is up 29.19% versus a gain of 13.22% for IVV.
Risk: Volatility and Drawdowns
FAI has been the more volatile fund, with annualized monthly volatility of 31.4% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -27.8% for FAI and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAI charges 0.65% per year while IVV charges 0.03%. On a $10,000 position that is $65 vs $3 annually, a gap of $62 per year that compounds over a long holding period. On income, FAI currently yields 0.00% against 1.10% for IVV.
Holdings Overlap
FAI and IVV share 23 holdings out of 532 unique holdings combined, representing a 30.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAI or IVV?
FAI has an expense ratio of 0.65% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, FAI or IVV?
Over the past year FAI returned +46.22% vs +21.62% for IVV, so FAI leads on 1-year performance. Over the longest common window we track (2 years), FAI annualized +38.78% vs +7.02% for IVV. Past performance does not guarantee future results.
Which is riskier, FAI or IVV?
FAI has been the more volatile fund at 31.4% annualized versus 15.1% for IVV. Worst drawdown: FAI -27.8% vs IVV -56.5%.
Should I hold both FAI and IVV?
FAI and IVV have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAI and IVV?
FAI and IVV share 23 common holdings with a 30.3% weight overlap. Combined, they hold 532 unique securities.
Which pays a higher dividend, FAI or IVV?
FAI yields 0.00% while IVV yields 1.10%, so IVV currently pays the higher dividend yield.
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