Roundhill Generative AI & Technology ETF

CHAT

Market cap $997M

AI is entering a long-term growth phase in 2026, with $527B in capex driving a broadening bull market in AI ETFs like AIQ.

NVIDIA Corp.'s (NASDAQ: NVDA) and Eli Lilly and Co.'s (NYSE: LLY) newly announced $1 billion AI co-innovation lab underscores how artificial intelligence is spreading beyond data centers into medicine, and ETF investors are beginning to price that into thematic funds.

Artificial intelligence remains a key driver of stock market success. These three AI ETFs have been successful in the past, and have underperformed the market in the last month.

AI stocks have been helping power the market higher for the past three years. The Roundhill's Generative AI ETF, Global X Artificial Intelligence & Technology ETF, and Invesco AI and Next Gen Software ETF are all great ways to invest in the AI trend.

Roundhill Generative AI & Technology ETF is rated Strong Buy, with a focus on overweight positioning and selling covered calls for risk mitigation. CHAT's outperformance versus the S&P 500 is driven by concentrated exposure to mega-cap AI leaders and deliberate global diversification, especially in non-U.S. AI supply chain equities. The ETF's volatility is pronounced due to high-valuation concentration and geographic diversification, offering both strong rallies and severe pullbacks.

CHAT is a growth-oriented ETF focused on AI + technology, actively managed. The management has led to high annualized volatility, but competitive returns in bull phases. CHAT is composed for 70% of info tech (AI oriented), a segment that today seems to offer more accessible relative valuations compared to the recent past.

There is no question that 2026 is already set up to be something of a continuance of 2025, at least in the sense of moving deeper into the world of AI, automation, and robotics.

The Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT) soared just over 45% in 2025, outpacing the S&P 500's 17% gain and the Nasdaq-100's 21% advance.

CHAT charges a higher expense ratio and is actively managed, while XLK is a large, low-cost index tracker with deep liquidity XLK's portfolio is nearly pure technology, whereas CHAT blends big tech with a modest tilt toward communication services and consumer cyclicals Both funds saw strong recent returns, but CHAT has outperformed XLK over the past year with slightly higher risk and a similar historical drawdown These 10 Stocks Could Mint the Next Wave of Millionaires ›

Artificial intelligence (AI) stocks like Nvidia and Palantir propelled the broader market higher during 2025. AI is likely to remain a dominant theme for the stock market in 2026, but picking the winners and losers won't be easy.