FAI vs VOO
FAI vs VOO
First Trust Bloomberg Artificial Intelligence ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FAI delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FAI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.03% | |
| AUM | $153M | $979.0B | |
| Dividend Yield | 0.00% | 1.09% | |
| Holdings | 53 | 509 | |
| YTD Return | +31.63% | +13.53% | |
| 1Y Return | +48.02% | +23.65% | |
| 3Y Return (annualized) | - | +21.27% | |
| 5Y Return (annualized) | - | +13.52% | |
| Volatility (annualized) | 31.5% | 14.1% | |
| Max Drawdown | -27.8% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2024 | Sep 7, 2010 |
FAI vs VOO Performance
First Trust Bloomberg Artificial Intelligence ETF (FAI) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FAI returned +48.02% while VOO returned +23.65%. Year to date, FAI is up 31.63% versus a gain of 13.53% for VOO.
Risk: Volatility and Drawdowns
FAI has been the more volatile fund, with annualized monthly volatility of 31.5% compared with 14.1% for VOO. 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 -34.3% for VOO. 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 VOO 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 1.09% for VOO.
Holdings Overlap
FAI and VOO share 23 holdings out of 532 unique holdings combined, representing a 29.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAI | Weight in VOO | Difference |
|---|---|---|---|
| NVDA | 8.80% | 7.51% | 1.29% |
| MSFT | 8.09% | 4.30% | 3.79% |
| AMZN | 8.16% | 3.62% | 4.54% |
| AVGO | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| PLTR | Pro | Pro | Pro |
| ORCL | Pro | Pro | Pro |
See all 10 holdings FAI shares with VOO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FAI or VOO?
FAI has an expense ratio of 0.65% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, FAI or VOO?
Over the past year FAI returned +48.02% vs +23.65% for VOO, so FAI leads on 1-year performance. Over the longest common window we track (2 years), FAI annualized +41.43% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, FAI or VOO?
FAI has been the more volatile fund at 31.5% annualized versus 14.1% for VOO. Worst drawdown: FAI -27.8% vs VOO -34.3%.
Should I hold both FAI and VOO?
FAI and VOO 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 VOO?
FAI and VOO share 23 common holdings with a 29.9% weight overlap. Combined, they hold 532 unique securities.
Which pays a higher dividend, FAI or VOO?
FAI yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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