Better Artificial Intelligence ETF: Roundhill's CHAT vs. State Street's XLK
Roundhill's AI-focused fund delivered 55.2% returns but carries higher volatility and fees. State Street's broader tech ETF offers lower costs and steadier performance for long-term investors.
Overview
The Roundhill Generative AI & Technology ETF (NYSEMKT:CHAT) provides high-conviction exposure to the generative artificial intelligence theme, whereas the State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) offers broad, low-cost access to technology giants within the S&P 500.
Both funds target the growth potential of the technology sector but employ different methodologies. XLK is a pillar of the sector-rotation strategy, holding established leaders, while CHAT seeks to capture the specific evolution of artificial intelligence through a more thematic and active approach across various industries.
Details
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.
Source
Originally published at www.fool.com.