The Roundhill Investments - Generative AI & Technology ETF (CHAT 0.45%) stands out for its higher recent returns, yield, and active focus on artificial intelligence, while the Vanguard Information Technology ETF (VGT +0.10%) offers lower costs, more holdings, and greater assets under management.
This comparison looks at how 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 broad technology sector exposure. Both ETFs provide access to major tech names, but differ significantly in cost, diversification, and risk profile.
Snapshot (cost & size)
| Metric | VGT | CHAT |
|---|---|---|
| Issuer | Vanguard | Roundhill Investments |
| Expense ratio | 0.09% | 0.75% |
| 1-yr return (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 price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
CHAT charges a considerably higher fee but currently delivers a much larger yield and recent return than VGT, which remains more affordable for long-term holders.
Performance & risk comparison
| Metric | VGT | CHAT |
|---|---|---|
| Max drawdown (2 y) | (27.23%) | (31.35%) |
What's inside
CHAT is built around the theme of generative artificial intelligence, with 52 holdings spanning 85% technology, 9% communication services, and 6% consumer cyclical sectors. Its largest positions include Alphabet (GOOGL 0.79%), NVIDIA (NVDA +1.60%), and Microsoft (MSFT +3.45%), and the fund applies an ESG screen. At 2.7 years old, it is relatively young and actively managed, aiming to capture growth from AI-related innovation.
VGT, by contrast, offers a broader technology sector snapshot, with 310 holdings and a heavy tilt toward technology at 98%. Its top holdings are NVIDIA, Apple (AAPL 0.07%), and Microsoft, giving investors wide coverage of established tech leaders. The fund follows a passive approach, tracking a broad tech index without thematic or ESG overlays.
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What this means for investors
For investors seeking exposure to the hot field of artificial intelligence, both Roundhill Investments’ CHAT and Vanguard’s VGT ETFs deliver this, but through very different approaches.
A key difference between these ETFs is that CHAT is actively managed, which explains why its expense ratio is much higher than VGT’s. CHAT is specifically targeted towards AI stocks, limiting its holdings to just 52 tech companies working on AI. It sprung up after generative AI exploded onto the scene with the arrival of OpenAI’s ChatGPT.
But this focus enabled CHAT to deliver an outstanding return of about 40% over the past year. With the AI sector poised for more growth in the coming years, CHAT is a compelling way to invest in this area.
VGT is not specifically an AI ETF. Rather, it offers broad exposure to the technology industry with over 300 holdings. This provides diversification, shielding from declines in AI stocks. But this also means its upside potential isn’t as great as CHAT. That said, VGT is significantly less expensive, and it offers lower volatility, as demonstrated by its smaller beta.
CHAT is for investors who aggressively want to pursue AI for its high growth potential, and are willing to pay larger fees in exchange. VGT is for investors who want AI exposure, but also are looking to buy and hold over the long run, given the ETF’s low cost and more expansive approach to tech, and not only to AI.
