1 week ago
10
Robert Izquierdo, The Motley Fool
Sun, January 25, 2026 astatine 11:06 AM CST 4 min read
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CHAT has delivered a overmuch higher one-year instrumentality and output than VGT, but with greater volatility and a steeper drawdown.
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CHAT is actively managed and applies an ESG screen, portion VGT tracks a wide exertion scale passively.
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VGT remains acold larger, with a little disbursal ratio and broader diversification crossed tech companies.
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The Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) stands retired for its higher caller returns, yield, and progressive absorption connected artificial intelligence, portion the Vanguard Information Technology ETF (NYSEMKT:VGT) offers little costs, much holdings, and greater assets nether management.
This examination looks astatine however the actively managed Roundhill Investments - Generative AI & Technology ETF (CHAT) which targets companies advancing generative artificial intelligence, stacks up against the passively managed Vanguard Information Technology ETF (VGT), a staple for wide exertion assemblage exposure. Both ETFs supply entree to large tech names, but disagree importantly successful cost, diversification, and hazard profile.
| Issuer | Vanguard | Roundhill Investments |
| Expense ratio | 0.09% | 0.75% |
| 1-yr instrumentality (as of 2026-01-23) | 16.8% | 39.4% |
| Dividend yield | 0.4% | 2.7% |
| Beta | 1.29 | 1.68 |
| AUM | $130.7 billion | $1.0 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.
CHAT charges a considerably higher interest but presently delivers a overmuch larger output and caller instrumentality than VGT, which remains much affordable for semipermanent holders.
| Max drawdown (2 y) | (27.23%) | (31.35%) |
CHAT is built astir the taxable of generative artificial intelligence, with 52 holdings spanning 85% technology, 9% connection services, and 6% user cyclical sectors. Its largest positions see Alphabet (NASDAQ:GOOGL), NVIDIA (NASDAQ:NVDA), and Microsoft (NASDAQ:MSFT), and the money applies an ESG screen. At 2.7 years old, it is comparatively young and actively managed, aiming to seizure maturation from AI-related innovation.
VGT, by contrast, offers a broader exertion assemblage snapshot, with 310 holdings and a dense tilt toward exertion astatine 98%. Its apical holdings are NVIDIA, Apple (NASDAQ:AAPL), and Microsoft, giving investors wide sum of established tech leaders. The money follows a passive approach, tracking a wide tech scale without thematic oregon ESG overlays.
For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.
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