Comparison of Two AI-Focused Funds: CHAT and XLK
Two different exchange-traded funds offered by Roundhill and State Street follow distinct strategies for technology and artificial intelligence investments.
The Roundhill Generative AI & Technology ETF and the State Street Technology Select Sector SPDR ETF offer two different approaches for investors looking to gain exposure to the technology and artificial intelligence sectors. As of September 10, 2026, the performance, cost, and portfolio structures of the funds stand out.
Core Approaches of the Funds
While the Roundhill Generative AI & Technology ETF (CHAT) provides high-focused exposure to generative artificial intelligence, the State Street Technology Select Sector SPDR ETF (XLK) offers broad and low-cost access to technology giants within the S&P 500.
While XLK follows a sector rotation strategy by keeping established leaders in its portfolio, CHAT aims to capture the evolution of artificial intelligence with a thematic and active approach.
Current Key Metrics
According to data from September 10, 2026, the issuer of the CHAT fund is Roundhill Investments, with a share price of $87.97, an expense ratio of 0.75%, a 1-year return of 55.2%, a dividend yield of 1.9%, a beta of 1.88, and an asset size of $1.8 billion.
According to data from the same date, the XLK fund offered by State Street has a share price of $185.22, an expense ratio of 0.08%, a 1-year return of 37.9%, a dividend yield of 0.4%, a beta of 1.34, and a total asset size of $122.3 billion.
Performance and Risk Comparison
Looking at data from the past three years, maximum drawdown rates were recorded as 31.3% for CHAT and 25.7% for XLK.
Over the 3-year period, the growth of a $1,000 investment reached approximately $3,172 in the CHAT fund and approximately $2,175 in the XLK fund.
Portfolio and Asset Allocation
Established in 1998, XLK tracks the Technology Select Sector Index containing 73 securities; its largest positions consist of Nvidia at 14.31%, Apple at 12.98%, and Microsoft at 9.90%.
Launched in 2023, CHAT holds 52 securities with 77% of its assets in technology, 15% in communication services, and 5% in consumer cyclical stocks, with its largest positions including Nvidia at 6.86%, Alphabet at 5.46%, and SK Hynix at 4.57%.
Strategic Differences for Investors
The author notes that the CHAT fund is actively managed, allows investments in companies like Alphabet that are not included in XLK's underlying index, pays a higher dividend, and offers a strong 1-year return.
In contrast, CHAT has a higher expense ratio and a shorter history, whereas XLK offers a more conservative approach with a lower expense ratio and technology assets outside of artificial intelligence.