CHAT vs. XLK: Leaning Into AI’s Next Phase or Anchoring in Mega-Cap Tech

By contrast, CHAT is a much newer, actively managed fund investing in 52 stocks across technology (83%), communication services (11%), and consumer cyclicals (6%). Its largest holdings include Alphabet (NASDAQ: GOOGL), Nvidia, and Microsoft. CHAT’s ESG screen may appeal to those seeking responsible investing within the generative AI theme, but it results in less sector purity compared to XLK.XLK holds about 70 companies and aims for comprehensive coverage of the S&P 500’s technology sector, with 99% of asse ...