Roundhill Generative AI & Technology ETF

CHAT

Market cap $1.01B

Investors who lack exposure to artificial intelligence (AI) stocks have probably underperformed the broader market over the last few years. The Roundhill Generative AI and Technology ETF is a simple way for investors to buy an entire portfolio of leading AI stocks.

Cloud computing ETFs have had a rough start to 2026, and Themes Cloud Computing ETF ( NYSEARCA:CLOD ) is no exception.

CHAT charges a much higher expense ratio but delivered significantly stronger one-year returns and a higher yield. FTEC is broader and more diversified, while CHAT is actively managed and focused on generative AI.

CHAT charges a much higher expense ratio, but it has also delivered a strikingly larger one-year total return. Risk is noticeably higher for CHAT, with deeper drawdowns and greater price swings than IYW.

While the Nasdaq-100 has slipped 1.14% so far in 2026, the Roundhill Generative AI & Technology ETF has put up an 8.36% gain year-to-date through February 27.

CHAT charges a higher expense ratio but offers a notably higher dividend yield than SOXX. CHAT has delivered slightly stronger five-year total returns, but with a higher beta as well.

Dividend stocks and defensive sectors have dramatically outperformed as investors flee AI-vulnerable and AI-spending industries, but valuations now appear stretched. Consumer staples and energy sectors trade at historically high forward P/E multiples, often exceeding the S&P 500, despite lower long-term earnings growth prospects. Materials and industrials have also become extended, with valuations reflecting significant future earnings already priced in, especially given AI infrastructure spending.

Artificial intelligence has been one of the most impactful technologies released, and it's only getting better.

Dividend stocks have sharply outperformed AI-related tech stocks since November 2025, reversing a multi-year trend. I see the rally in dividend ETFs like SCHD as overextended, prompting a pause in new purchases despite recent gains. AI is likely to benefit users more than makers, with sectors like banks, energy, and consumer staples positioned as early winners.

The global artificial intelligence ecosystem is forecast to expand 25-fold during the next seven years. With so much money being plowed into AI development, the investment opportunities in this sector are still huge.