Better Artificial Intelligence Tech ETF: Roundhill's CHAT vs. Vanguard's VGT

Core Insights - The Roundhill Investments - Generative AI & Technology ETF (CHAT) has shown higher recent returns and yield compared to the Vanguard Information Technology ETF (VGT), which is characterized by lower costs and a larger asset base [2][3] Cost & Size Comparison - CHAT has an expense ratio of 0.75% while VGT has a significantly lower expense ratio of 0.09% - As of January 23, 2026, CHAT's one-year return is 39.4% compared to VGT's 16.8% - CHAT offers a dividend yield of 2.7%, whereas VGT's yield is only 0.4% - VGT has assets under management (AUM) of $130.7 billion, while CHAT has $1.0 billion [4][5] Performance & Risk Comparison - Over a two-year period, the maximum drawdown for VGT is (27.23%) compared to CHAT's (31.35%) [6] Holdings Composition - CHAT focuses on generative artificial intelligence with 52 holdings, primarily in technology (85%), followed by communication services (9%) and consumer cyclical (6%). Major holdings include Alphabet, NVIDIA, and Microsoft [7] - VGT provides broader exposure with 310 holdings, predominantly in technology (98%), featuring top companies like NVIDIA, Apple, and Microsoft [8] Summary of Investment Profiles - CHAT has outperformed VGT in terms of one-year return and yield but comes with higher volatility and a steeper drawdown - CHAT is actively managed with an ESG screen, while VGT follows a passive management approach tracking a broad technology index - VGT offers greater diversification and a lower expense ratio, making it more suitable for long-term investors [9]