FAI vs VTI
FAI vs VTI
First Trust Bloomberg Artificial Intelligence ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FAI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | FAI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.03% | |
| AUM | $153M | $663.5B | |
| Dividend Yield | 0.00% | 1.07% | |
| Holdings | 53 | 3,543 | |
| YTD Return | +31.63% | +13.92% | |
| 1Y Return | +48.02% | +24.07% | |
| 3Y Return (annualized) | - | +20.88% | |
| 5Y Return (annualized) | - | +12.47% | |
| Volatility (annualized) | 31.5% | 15.3% | |
| Max Drawdown | -27.8% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2024 | May 24, 2001 |
FAI vs VTI Performance
First Trust Bloomberg Artificial Intelligence ETF (FAI) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FAI returned +48.02% while VTI returned +24.07%. Year to date, FAI is up 31.63% versus a gain of 13.92% for VTI.
Risk: Volatility and Drawdowns
FAI has been the more volatile fund, with annualized monthly volatility of 31.5% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAI charges 0.65% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FAI and VTI share 39 holdings out of 2794 unique holdings combined, representing a 26.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAI | Weight in VTI | Difference |
|---|---|---|---|
| NVDA | 8.80% | 6.32% | 2.48% |
| MSFT | 8.09% | 3.81% | 4.28% |
| AVGO | 8.90% | 2.46% | 6.44% |
| AMZN | 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 VTI 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 VTI?
FAI has an expense ratio of 0.65% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, FAI or VTI?
Over the past year FAI returned +48.02% vs +24.07% for VTI, so FAI leads on 1-year performance. Over the longest common window we track (2 years), FAI annualized +41.43% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, FAI or VTI?
FAI has been the more volatile fund at 31.5% annualized versus 15.3% for VTI. Worst drawdown: FAI -27.8% vs VTI -56.6%.
Should I hold both FAI and VTI?
FAI and VTI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAI and VTI?
FAI and VTI share 39 common holdings with a 26.6% weight overlap. Combined, they hold 2794 unique securities.
Which pays a higher dividend, FAI or VTI?
FAI yields 0.00% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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