CHAT vs. XLK: CHAT Outperforms XLK on Returns, But XLK Offers on Fees

Jake Lerch, The Motley Fool

Wed, May 27, 2026 astatine 10:48 AM CDT 5 min read

Investors choosing betwixt Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) and State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) indispensable equilibrium specialized generative AI vulnerability against a diversified, low-cost exertion assemblage staple.

Both funds supply concentrated entree to the exertion assemblage but done antithetic lenses. While XLK captures established giants wrong the S&P 500, CHAT actively targets companies specifically driving the generative artificial quality revolution. This examination explores whether the specialized absorption and progressive absorption of the Roundhill money warrant its higher costs comparative to the State Street staple.

Snapshot (cost & size)

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

The outgo quality is significant; the State Street Technology Select Sector SPDR ETF is acold much affordable with an 0.08% disbursal ratio. However, the Roundhill Investments - Generative AI & Technology ETF presently provides a notably higher payout for income-seekers.

Performance & hazard examination

What's wrong

State Street Technology Select Sector SPDR ETF provides vulnerability to exertion hardware, software, and semiconductor industries with 73 holdings. Its largest positions see Nvidia Corp (NASDAQ:NVDA) astatine 14.92%, Apple Inc (NASDAQ:AAPL) astatine 12.19%, and Microsoft Corp (NASDAQ:MSFT) astatine 8.57%. Launched successful 1998, the money focuses wholly connected the exertion assemblage (100%) and has a trailing-12-month dividend of $0.76 per share.

Roundhill Investments - Generative AI & Technology ETF is an actively managed portfolio targeting companies successful the generative artificial quality space. The money holds 52 positions crossed exertion (74%), connection services (18%), and user cyclicals (7%). Its largest positions see Nvidia Corp astatine 7.06%, Alphabet Inc (NASDAQ:GOOGL) astatine 6.56%, and Advanced Micro Devices Inc (NASDAQ:AMD) astatine 5.70%. Launched successful 2023, the money utilizes an ESG surface and paid $1.68 per stock implicit the trailing 12 months.

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