CHAT ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The world's first actively managed ETF that invests comprehensively across the entire generative AI value chain, from hardware to software.
SubscribeWhat Is This ETF?
This is an actively managed fund that selects and invests in companies that stand to benefit directly from the growth of the generative AI industry. The portfolio is built around three core pillars: platform development, hardware infrastructure, and software applications.
It suits investors who want to invest in the early growth of the generative AI market and own the entire value chain of innovative technology.
Launched by Roundhill in 2023, it is an ETF with an active management approach.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | Actively managed (does not track an index) |
| Management Style | Active (strategic stock selection) |
| Rebalancing Frequency | Ad hoc rebalancing |
| Dividend Frequency | Annual dividend |
| Total Expense Ratio | 0.75% |
The fund selects makers of high-performance semiconductors for AI computation, cloud infrastructure providers, large platform companies that own proprietary large language models, and software companies that have built AI technology into real products. Portfolio managers adjust weightings in line with market conditions and technology trends.
- The world's first ETF dedicated to the generative AI theme
- A comprehensive investment strategy spanning both hardware and software
Size and Costs
Assets under management (AUM) stand at $1.7B, and the total expense ratio is 0.75% per year.
As an actively managed fund, it turns over holdings frequently as markets change, and its fees are somewhat higher than those of passive index ETFs with similar themes.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReflecting market expectations for the AI industry, the fund has shown strength led by technology stocks, though prices can swing depending on interest rate volatility and companies' real ability to generate profits.
Since generative AI technology went mainstream, related investment capital has flowed in, and strong earnings from core infrastructure companies such as semiconductor makers have had a positive effect on overall fund flows.
Strengths and Weaknesses
The fund offers concentrated exposure across every area of generative AI, but sector concentration and the relatively high cost burden of active management are factors to consider before investing.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products
AIQ and ARTY, shown in the table, are direct competitors in the AI theme, and IGPT and BAI are similar ETFs that also focus on next-generation AI software and technological innovation. Meanwhile, LIT offers a different angle, approaching AI from the infrastructure side through battery technology. Beyond these, investors who want broader exposure to robotics and automation can consider BOTZ or ROBO, and those seeking growth across the entire Nasdaq can look to QQQ as an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 BAI | iShares A.I. Innovation and Tech Active ETF | $42.40 | -2.8% | $13.6B | 0.55% | 1.4% | +11.9% |
 AIQ | Global X Artificial Intelligence & Technology ETF | $62.94 | -2.3% | $10.4B | 0.68% | 0.07% | +17.7% |
 ARTY | iShares Future AI & Tech ETF | $72.56 | -2.6% | $4.0B | 0.47% | 0.06% | +40.9% |
 IGPT | Invesco AI and Next Gen Software ETF | $90.52 | -3.2% | $1.4B | 0.57% | - | +47.2% |
 LIT | Global X Lithium & Battery Tech ETF | $60.94 | -2.8% | $1.1B | 0.75% | 0.83% | -1.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| GOOGL | Alphabet Inc | 0.07% | $283.82 | -12.6% | $3.45T | 14.8 | 0.31% |
| NVDA | NVIDIA Corp | 0.13% | $213.66 | -0.8% | $5.15T | 27.0 | 0.37% |
| GOOG | Alphabet Inc | 0.06% | $282.32 | -12.3% | $3.47T | 14.7 | 0.31% |
| AMD | Advanced Micro Devices Inc | 0.05% | $566.42 | -2.1% | $924.7B | 145.4 | - |
| AVGO | Broadcom Inc | 0.08% | $345.00 | -1.9% | $1.65T | 44.0 | 0.76% |
| SKHY | SK Hynix Inc ADR | 0.04% | $162.09 | -1.6% | $1.18T | 10.5 | 1.28% |
| AMZN | Amazon.com Inc | 0.04% | $243.79 | -4.3% | $2.63T | 19.6 | - |
| MU | Micron Technology Inc | 0.04% | $934.27 | -5.0% | $1.06T | 12.6 | 0.08% |
Investor Checkpoints
We have outlined the key points to review before deciding to invest in the CHAT ETF. Because it invests in the innovative generative AI theme, it is important to understand the volatility risk that comes with the profit opportunity.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the annual fee cost of active management | Somewhat high |
| 💻 AI Revenue Share | Check how well holdings actually generate AI-driven revenue | Holding steady |
| 📊 Sector Concentration | Check concentration in the semiconductor and software sectors | High |
Key risk factors include debate over an overheated generative AI market, moves toward stricter regulation by country, and the valuation burden on growth stocks as interest rate conditions change. There is also the risk of holdings turnover driven by rapid shifts in technology trends.
This product suits investors who want to concentrate early on AI innovation companies. However, because short-term volatility is large and its expenses are on the high side, we recommend using it as a strategic portfolio asset with a long-term perspective.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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