FAI vs IVV
First Trust Bloomberg Artificial Intelligence ETF vs iShares Core S&P 500 ETF
Which is better, FAI or IVV?
Large Cap Growth against Large Cap Blend.
IVV has a lower expense ratio. FAI led over 1Y and the full window. IVV is less concentrated, with 38.9% of the fund in its ten largest positions against 61.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FAI | IVV |
|---|---|---|
| Expense Ratio | 0.65% | 0.03%Best |
| AUM | $264M | $896.5B |
| Dividend Yield | 0.00% | 1.10% |
| Holdings | 107 | 508 |
| YTD Return | +34.43%Best | +13.59% |
| 1Y Return | +38.17%Best | +17.54% |
| 3Y Return (annualized) | - | +22.46% |
| 5Y Return (annualized) | - | +13.28% |
| Volatility (annualized) | 30.3% | 12.3%Best |
| Max Drawdown | -27.8% | -18.8%Best |
| $10,000 over 1.9 years | $18,443Best | $13,293 |
| Top 10 Weight | 61.7% | 38.9%Best |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Nov 20, 2024 | May 15, 2000 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 21, 2024 to Oct 14, 2026 (1.9 years).
FAI vs IVV growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.
FAI vs IVV Performance
First Trust Bloomberg Artificial Intelligence ETF (FAI) is an ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US). Over the past year FAI returned +38.17% while IVV returned +17.54%. Year to date, FAI is up 34.43% versus a gain of 13.59% for IVV.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAI has been the more volatile fund, with annualized monthly volatility of 30.3% compared with 12.3% 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 -18.8% for IVV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 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
76.7% of FAI's money is in holdings IVV also owns. 32.7% of IVV's money is in holdings FAI also owns.
Most of FAI is already inside IVV. Owning both mostly buys the same companies twice.
23 positions in common, counted across the 50 positions we hold weights for in FAI and 506 in IVV, against full books of 107 and 508.
What only one of them owns
Our book lists 477 positions for IVV that do not appear in our book for FAI (66.8% of the fund), and 19 for FAI that do not appear in IVV (9.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FAI | Weight in IVV | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.55% | 8.44% | 0.11% |
| MSFTMicrosoft Corp | 9.62% | 5.76% | 3.86% |
| AMZNAmazon.Com Inc | 7.92% | 3.68% | 4.24% |
| AVGOBroadcom Inc | 7.64% | 2.47% | 5.17% |
| GOOGLAlphabet Inc | 7.05% | 3.00% | 4.05% |
| METAMeta Platforms Inc | 4.22% | 2.42% | 1.80% |
| MUMicron Technology, Inc. | 3.82% | 1.87% | 1.95% |
| PLTRPalantir Technologies Inc | 4.89% | 0.66% | 4.23% |
| AMDAdvanced Micro Devices Inc | 3.71% | 1.52% | 2.19% |
| ORCLOracle Corp - Common | 4.16% | 0.36% | 3.80% |
76.7% of FAI is already inside IVV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $62 a year on a $10,000 investment.
Which performed better, FAI or IVV?
Over the past year FAI returned +38.17% vs +17.54% for IVV, so FAI leads on 1-year performance. Over the longest common window we track (2 years), FAI annualized +38.01% vs +16.16% for IVV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAI or IVV?
FAI has been the more volatile fund at 30.3% annualized versus 12.3% for IVV. Worst drawdown: FAI -27.8% vs IVV -18.8%.
Should I hold both FAI and IVV?
FAI and IVV have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FAI and IVV?
76.7% of FAI's money is in holdings IVV also owns. 32.7% of IVV's is in holdings FAI also owns. They hold 23 positions in common, counted across the 50 positions we hold weights for in FAI and 506 in IVV.
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.
Is IVV better than FAI?
IVV has a lower expense ratio. FAI led over 1Y and the full window. IVV is less concentrated, with 38.9% of the fund in its ten largest positions against 61.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.