First Trust Launches New FAI ETF to Tap into Artificial Intelligence Growth

How FAI ETF works

The First Trust Bloomberg Artificial Intelligence ETF tracks the Bloomberg AI Index, investing in 50 global leaders driving AI advancements like deep learning and natural language processing. Companies are rigorously selected based on their revenue exposure to AI, market position, and role in software, hardware, and semiconductors.

The index uses a modified market-cap weighting and is rebalanced quarterly to stay aligned with AI’s evolving landscape.

According to the fund's page, the top holdings on inception date include:

1. NVIDIA Corporation: 8.88%
2. Amazon.com, Inc.: 8.05%
3. Alphabet Inc. (Class A): 7.59%
4. Microsoft Corporation: 7.51%
5. Meta Platforms Inc. (Class A): 7.14%
6. ServiceNow, Inc.: 4.31%
7. Oracle Corporation: 4.27%
8. Palantir Technologies Inc. (Class A): 4.09%
9. Taiwan Semiconductor Manufacturing Company Ltd.: 3.93%
10. Adobe Incorporated: 3.75%

FAI has an expense ratio of 0.65%.

Why Investors Should Consider FAI ETF

AI is reshaping industries, driving efficiency, and fostering innovation, making it a key theme for long-term investment. The FAI ETF offers a convenient and cost-efficient way for investors to capitalize on this trend by accessing a portfolio of companies poised to benefit from the expanding adoption of AI technologies.

The fund’s underlying index is designed to highlight businesses that are not only leading AI research and development but are also applying AI to create scalable business solutions. This approach ensures that the ETF provides exposure to both high-growth opportunities and established companies leveraging AI to sustain their market positions.

About First Trust

First Trust is a leading investment manager known for its diverse suite of innovative ETFs and dedication to investor education. With a focus on providing unique, rule-based solutions, First Trust has consistently delivered products designed to meet modern investment challenges. The launch of FAI reinforces its commitment to empowering investors with access to transformative themes like artificial intelligence.

By offering the First Trust Bloomberg Artificial Intelligence ETF, First Trust provides a timely and compelling opportunity to participate in the dynamic growth of AI—an area poised to redefine industries and drive market returns in the years ahead.

Most popular First Trust ETFs year-to-date by net inflows

1. First Trust SMID Cap Rising Dividend Achievers ETF
   SDVY
   :+$3.95B
2. FT Cboe Vest Fund of Buffer ETF
   BUFR
   : +$2.24B
3. First Trust NASDAQ Rising Dividend Achievers ETF
   RDVY
   : +$1.70B
4. First Trust RBA American Industrial Renaissance ETF
   AIRR
   : +$1.49B
5. First Trust TCW Unconstrained Plus Bond ETF
   UCON
   : +$1.34B
6. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF
   GRID
   : +$966M
7. First Trust TCW Opportunistic Fixed Income ETF
   FIXD
   : +$807M
8. FT Cboe Vest Rising Dividend Achievers Target Income ETF
   RDVI
   : +$738M
9. First Trust Growth Strength ETF
   FTGS
   : +$716M
10. First Trust Low Duration Mortgage Opportunities ETF
    LMBS
    : +$697M

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.