First Trust Exchange-Traded Fund II - First Trust Bloomberg Artificial Intelligence ETF

Frequently Asked Questions About FAI

What does FAI invest in?

FAI follows an index of global companies that develop or facilitate artificial intelligence solutions. These AI solutions include deep learning, machine learning, natural language processing, and image and speech recognition. From its initial universe consisting of the broad US equity market space, securities are screened to identify those in the AI ecosystem through a revenue and theme assessment using fundamental data. Companies are then assigned a tier depending on the combined assessments. Those with the highest revenue derived from, and exposure to the AI theme, based on combined assessment score, are assigned into the gold tier. Within the gold tier, companies are then screened to belong to one of five exposure categories. The top 50 securities with a revenue assessment of 1 are finally selected for inclusion by size order. Constituents are then market-cap weighted with the top 5 securities capped at 8% and the rest at 4%. The Index is rebalanced and reconstituted quarterly.

What is the expense ratio of FAI?

First Trust Exchange-Traded Fund II - First Trust Bloomberg Artificial Intelligence ETF (FAI) charges an expense ratio of 0.65%. This is the annual fee deducted from fund assets to cover management and operations.

How big is FAI?

First Trust Exchange-Traded Fund II - First Trust Bloomberg Artificial Intelligence ETF (FAI) manages $249.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is FAI actively managed or an index fund?

FAI is a passive index fund. It tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (FAI's is 0.65%) because there's no security selection cost.

When was FAI launched?

First Trust Exchange-Traded Fund II - First Trust Bloomberg Artificial Intelligence ETF (FAI) launched in November 2024 and is managed by First Trust.

How has FAI performed?

FAI's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.