The Roundhill Generative AI & Technology ETF (NYSEMKT:CHAT) offers thematic exposure to the artificial intelligence ecosystem, while the Vanguard Information Technology ETF (NYSEMKT:VGT) provides broad-based technology sector coverage with much lower costs. Investors looking for tech exposure may find these two funds have very different risk profiles. While the Roundhill fund targets a specific technological shift, the Vanguard fund follows a broad index of established tech giants, providing a diversified foundation for a growth-oriented portfolio.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a major differentiator here, as the Vanguard fund is 66 basis points more affordable than its competitor. Additionally, there is a notable yield gap, as the Roundhill fund currently offers a higher payout to its shareholders. Growth of $1,000 over 3 years (total return) The Vanguard Information Technology ETF focuses on a broad range of electronics and computer-related companies, with 99% of its assets concentrated in the technology sector.
Its largest positions include Nvidia (NASDAQ:NVDA) at 16.10%, Apple (NASDAQ:AAPL) at 14.33%, and Microsoft (NASDAQ:MSFT) at 8.28%. The fund holds 310 stocks in total. The Vanguard Information Technology ETF has paid $0.43 per share over the trailing 12 months, which on its recent ~$122.99 share price works out to a 0.4% yield.
The Roundhill Generative AI & Technology ETF takes a more specialized approach, focusing on the artificial intelligence landscape with 77% in technology and 17% in communication services. Top holdings include Nvidia at 6.43%, Alphabet (NASDAQ:GOOGL) at 5.13%, and Broadcom (NASDAQ:AVGO) at 4.12%. It maintains a tighter portfolio of 52 holdings and has seen higher assets under management (AUM) growth recently.
The Roundhill Generative AI & Technology ETF has paid $1.68 per share over the trailing 12 months, which on its recent ~$93.61 share price works out to a 1.8% yield. For more guidance on ETF investing, check out the full guide at this link. Those seeking to invest in the hot field of artificial intelligence have two distinct choices in the Vanguard Information Technology ETF (VGT) and the Roundhill Generative AI & Technology ETF (CHAT).
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