The Roundhill Investments Generative AI & Technology ETF (NYSEMKT:CHAT) offers concentrated, active exposure to generative artificial intelligence, while the iShares U.S. Technology ETF (NYSEMKT:IYW) provides a broader, lower-cost index-based approach to the established domestic technology sector.<\/p>\n
Both funds provide a gateway to high-growth tech, but their underlying strategies and cost structures differ significantly. While IYW tracks a diversified index of established domestic tech giants, CHAT is an actively managed fund specifically targeting the emerging theme of generative AI. This comparison helps investors decide between broad-market index stability and specialized thematic growth.<\/p>\n
Snapshot (cost & size) <\/p>\n
Metric<\/p>\n
IYW<\/p>\n
CHAT<\/p>\n
Issuer<\/p>\n
iShares<\/p>\n
Roundhill Investments<\/p>\n
Expense ratio<\/p>\n
0.38%<\/p>\n
0.75%<\/p>\n
1-yr return (as of June 18, 2026)<\/p>\n
53.70%<\/p>\n
128.0%<\/p>\n
Dividend yield<\/p>\n
0.10%<\/p>\n
1.72%<\/p>\n
Beta<\/p>\n
1.35<\/p>\n
1.81<\/p>\n
AUM<\/p>\n
$25.4 billion<\/p>\n
$2.1 billion<\/p>\n
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12\u00a0months. Dividend yield is the trailing-12-month distribution yield as of the closing prices of June 18.<\/p>\n
The iShares fund is the more affordable choice, with an expense ratio of 0.38% compared to the Roundhill fund\u2019s 0.75%. Additionally, the Roundhill fund offers a significantly higher dividend payout for investors seeking income alongside tech growth.<\/p>\n
Performance & risk comparison <\/p>\n
Metric<\/p>\n
IYW<\/p>\n
CHAT<\/p>\n
Max drawdown (3 yr)<\/p>\n
(26.50%)<\/p>\n
(31.30%)<\/p>\n
Growth of $1,000 over 3 years (total return)<\/p>\n
$2,355<\/p>\n
$3,520<\/p>\n
What’s inside <\/p>\n
The Roundhill Investments Generative AI & Technology ETF manages 42 holdings across sectors, including Technology at 76.9%, Communication Services at 16.7%, and Consumer Cyclical at 5.9%. Its largest positions include SK Hynix Inc at 6.2%, Micron Technology (NASDAQ:MU) at 6.1%, and Nvidia Corp (NASDAQ:NVDA) at 5.8%. This actively managed fund, launched in 2023, paid $1.68 per share over the trailing 12 months, reflecting a strategy focused on identifying global productivity drivers.<\/p>\n
iShares U.S. Technology ETF offers a broader reach with 139 holdings and tracks the Russell 1000 Technology Index. Its largest positions include Nvidia at 14.81%, Apple (NASDAQ:AAPL) at 13.52%, and Alphabet (NASDAQ:GOOGL) at 12.06% across both share classes of the company. Launched in 2000, this fund has a trailing-12-month dividend of $0.26 per share. The fund is about 84% in technology stocks, 16% in communications services, and a smidgen in industrials.<\/p>\n
Which fund is the better buy? <\/p>\n
As Tuesday\u2019s action in tech stocks shows, AI and tech stocks can be volatile. CHAT\u2019s larger historical drawdown of more than 31% shows that the same volatility that sent the fund to its heights can also clip investment gains quickly.<\/p>\n
Story Continues <\/p>\n
The Roundhill AI fund has posted excellent growth year-to-date of 77%, as well as over the 3-year time frame at nearly 54%. Still, the fund has existed only during the general bull market for tech stocks and AI stocks in particular, so it\u2019s difficult to gauge how the fund may perform in a sideways or bear market.<\/p>\n
The iShares fund IYW has been through a few bear markets and has weathered the long-term market well. The fund did have significant drawdowns with the dotcom bust, the financial crisis of 2008, and in 2022, plus a milder drawdown during the pandemic. Yet over the 10-year time frame, IYW has returned nearly 26% and 8% (both annualized) since its inception.<\/p>\n
A more diverse fund, like IYW, with its 139 holdings, longer track record, and much lighter expense ratio, makes the iShares U.S. Technology ETF the recommendation for long-term investors. CHAT has soared with the race into AI stocks, but it\u2019s possible the AI-specific gains may be mostly in its rearview mirror.<\/p>\n
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