Which Is the Better Artificial Intelligence ETF, Roundhill’s CHAT or Vanguard’s VGT?
Robert Izquierdo, The Motley Fool
Sat, August 15, 2026 at 11:45 PM GMT+5:30
4 min read
- VGT
-0.35% - ^GSPC
-0.17%
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
Snapshot (cost & size)
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
Performance & risk comparison
What’s inside
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. It was launched in 2004. 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. It was launched in 2023. 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.
