ETF Evaluator: First Trust Bloomberg Art Int ETF () Follow This ETF

First Trust Bloomberg Art Int ETF Overview

First Trust Bloomberg Art Int ETF (FAI) is a passively managed Sector Equity Technology exchange-traded fund (ETF). First Trust launched the ETF in 2024.

The investment seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an index called the Bloomberg Artificial Intelligence Index. Under normal market conditions, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the index. The index selects the top 50 companies based on a combination of the Revenue Assessment and market capitalization of companies stemming from Artificial Intelligence products and services utilizing data from Bloomberg Intelligence. The fund is non-diversified.

About First Trust Bloomberg Art Int ETF (FAI)

There are 7 members of the management team with an average tenure of 1.69 years: Daniel Lindquist (2024), Jon Erickson (2024), David McGarel (2024), Stan Ueland (2024), Chris Peterson (2024), Erik Russo (2024) and Roger Testin (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg AI TR USD index with a weighting of 100%. First Trust Bloomberg Art Int ETF has 52 securities in its portfolio. The top 10 holdings constitute 62.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust Bloomberg Art Int ETF is part of the Equity global asset class and is within the Sector Equity ETF group. First Trust Bloomberg Art Int ETF has 13.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 86.1% There is 13.9% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Bloomberg Art Int ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $159 million in total assets, which is below the $3 billion average for the Technology category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FAI Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Bloomberg Art Int ETF expense ratio is above average compared to funds in the Technology category. First Trust Bloomberg Art Int ETF has an expense ratio of 0.65%, which is 21% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Bloomberg Art Int ETF has a portfolio turnover rate of 10%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 39% for the Technology category.

Recently, in the month of July 2026, First Trust Bloomberg Art Int ETF returned -6.3%, which earned it a grade of B, as the Technology category had an average return of -9.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust Bloomberg Art Int ETF has a trailing yield of 0.00%, which is below the 0.45% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust Bloomberg Art Int ETF Grades

Year to date, the ETF has returned 23.2%, 1.9 percentage points better than the category, which translates into a grade of C. The fund has returned 36.7% over the past year (grade of B).

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