Investors can choose between the broad, seasoned portfolio of the iShares U.S. Technology ETF (IYW +1.29%) and the hyper-concentrated, high-growth focus on artificial intelligence offered by the Roundhill Generative AI & Technology ETF (CHAT +1.47%).
The iShares fund tracks established giants across the U.S. technology sector, providing diversified exposure to hardware, software, and semiconductors. In contrast, the Roundhill fund is a thematic vehicle designed to capture the specific growth trajectory of generative artificial intelligence and related infrastructure companies.
Snapshot (cost & size)
| Metric | IYW | CHAT |
|---|---|---|
| Issuer | iShares | Roundhill Investments |
| Share price | $245.10 (as of 2026-07-08) | $89.81 (as of 2026-07-08) |
| Expense ratio | 0.38% | 0.75% |
| 1-yr return (as of 2026-07-08) | 40.30% | 91.50% |
| Dividend yield | 0.10% | 1.80% |
| Beta | 1.35 | 1.87 |
| AUM | $24.6 billion | $2.0 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Roundhill fund is more expensive, with a 0.75% expense ratio that roughly doubles the 0.38% cost of the iShares fund. However, CHAT provides a much larger payout for income-seeking investors through its 1.80% trailing dividend yield.
Performance & risk comparison
| Metric | IYW | CHAT |
|---|---|---|
| Max drawdown (3 yr) | (26.50%) | (31.30%) |
| Growth of $1,000 over 3 years (total return) | $2,299 | $3,227 |
What's inside
The Roundhill Generative AI & Technology ETF concentrates on companies at the forefront of the AI shift, with its portfolio including technology (76%), communication services (18%), and industrials (4%). Its largest positions include Nvidia (NVDA +4.03%) at 7.29%, Alphabet (GOOGL +2.04%) at 5.66%, and Broadcom (AVGO +1.81%) at 4.71%. This fund holds 52 securities and was launched in 2023. The Roundhill Generative AI & Technology ETF has paid $1.68 per share over the trailing 12 months, which on its recent ~$90 share price works out to a 1.80% yield.
The iShares U.S. Technology ETF provides a broader look at the sector, though nearly 40% of the fund is focused on semiconductor-related stocks, a key driver of the AI boom. Its largest positions include Nvidia at 13.10%, Apple (AAPL 0.66%) at 12.94%, and Microsoft (MSFT 1.42%) at 8.75%. The fund manages 149 holdings and was launched in 2000. The iShares U.S. Technology ETF has paid $0.26 per share over the trailing 12 months, which on its recent ~$245 share price works out to a 0.10% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The 2023 launch of the Roundhill Generative AI & Technology ETF (CHAT) coincided with the rise of the artificial intelligence sector to capitalize on this emerging market. Even though the iShares U.S. Technology ETF (IYW) delivers a broader scope than just AI, many of its holdings are part of the AI industry, such as Nvidia and Microsoft. Which to choose to gain AI exposure depends on a few considerations.
CHAT is ideal for those who want a pure AI-only ETF, and are willing to take on greater risk and volatility as a tradeoff. Its impressive one-year and three-year returns combined with a far superior dividend yield are key reasons to invest in CHAT. Another benefit is that it is an actively-managed fund, which contributes to the higher expense ratio, but you get experts making the necessary fund adjustments to keep pace with the fast-moving AI industry.
IYW is for conservative investors who want AI exposure without the high beta and max drawdown seen with CHAT. This fund balances high-risk, high-reward AI stocks with broader technology holdings, such as Apple. As a result, it’s a more diversified ETF, which reduces the impact of downturns in the AI sector.
