Which Is the Better Artificial Intelligence (AI) ETF, Roundhill's CHAT or State Street's XLK?
Key takeaways
- Investors seeking technology exposure often choose between broad sector plays and targeted thematic funds.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- Cost-conscious investors may prefer the State Street fund, which features a notably lower expense ratio.
Investors seeking technology exposure often choose between broad sector plays and targeted thematic funds. CHAT offers an actively managed approach to the emerging generative artificial intelligence space, while XLK provides passive exposure to the largest technology companies within the S&P 500. This comparison highlights their divergent strategies and risk profiles.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The One-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors may prefer the State Street fund, which features a notably lower expense ratio. However, the Roundhill fund offers a higher payout, having distributed $1.68 per share over the trailing 12 months compared to $0.76 for its peer, representing a 1.32 percentage point yield gap.