VGT vs. CHAT: Two Tech ETFs With Different Approaches on Management and Fees

2 hours ago 5

Jake Lerch, The Motley Fool

Sat, December 20, 2025 astatine 1:58 PM CST 6 min read

CHAT has delivered a overmuch stronger one-year instrumentality but astatine a importantly higher disbursal ratio than VGT
VGT holds much stocks, is acold larger and much liquid, and is little volatile than the concentrated, actively managed CHAT
Both funds heavy diagnostic tech giants, but CHAT's AI-specific absorption make a narrower, thematic tilt
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Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) stands retired for its active, AI-driven absorption and caller outperformance, portion Vanguard Information Technology ETF (NYSEMKT:VGT) offers broader tech exposure, little costs, and greater liquidity.

Both funds people the exertion sector, but with chiseled approaches: CHAT is an actively managed, concentrated stake connected generative artificial quality and related technologies, portion VGT passively tracks a overmuch wider swath of the U.S. tech market. Here’s however they stack up for investors comparing specialized innovation with established assemblage breadth.

Metric

CHAT

VGT

Issuer	Roundhill Investments	Vanguard
Expense ratio	0.75%	0.09%
1-yr instrumentality (as of 2025-12-11)	49.3%	21.3%
Beta	1.63	1.25
AUM	$1.1 billion	$116.3 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VGT is dramatically much affordable connected fees, charging conscionable 0.09% versus CHAT’s 0.75% disbursal ratio—a important quality for cost-conscious investors.

Metric

CHAT

VGT

Max drawdown (5 y)	-31.34%	-35.08%
Growth of $1,000 implicit 5 years	$2,401	$2,297

Vanguard Information Technology ETF (VGT) is simply a nearly-22-year-old, passively managed money holding 316 stocks crossed the U.S. exertion sector. It is heavy weighted toward tech leaders, with NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) making up a important information of assets. The fund’s near-total allocation to exertion companies (98%) delivers broad, diversified vulnerability to the assemblage without large thematic tilts oregon screens.

Roundhill Investments - Generative AI & Technology ETF (CHAT), by contrast, is actively managed, holds lone 47 stocks, and applies an environmental, social, and governance (ESG) screen. Its portfolio is concentrated successful exertion (83%) and connection services (11%), with Alphabet (NASDAQ:GOOGL), NVIDIA, and Microsoft among its apical holdings. CHAT’s absorption connected generative AI and related technologies, positive its ESG overlay, results successful a much specialized and thematically constrictive portfolio than VGT.