Which Is the Better Artificial Intelligence ETF, Roundhill's CHAT or Vanguard's VGT?

Robert Izquierdo, The Motley Fool

Sat, August 15, 2026 astatine 1:15 PM CDT 4 min read

The Roundhill Generative AI & Technology ETF (NYSEMKT:CHAT) offers thematic vulnerability to the artificial quality ecosystem, portion the Vanguard Information Technology ETF (NYSEMKT:VGT) provides broad-based exertion assemblage sum with overmuch little costs.

Investors looking for tech vulnerability whitethorn find these 2 funds person precise antithetic hazard profiles. While the Roundhill money targets a circumstantial technological shift, the Vanguard money follows a wide scale of established tech giants, providing a diversified instauration for a growth-oriented portfolio.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-year instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Cost is simply a large differentiator here, arsenic the Vanguard money is 66 ground points much affordable than its competitor. Additionally, determination is simply a notable output gap, arsenic the Roundhill money presently offers a higher payout to its shareholders.

Performance & hazard examination

What's wrong

The Vanguard Information Technology ETF focuses connected a wide scope of electronics and computer-related companies, with 99% of its assets concentrated successful the exertion sector. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 16.10%, Apple (NASDAQ:AAPL) astatine 14.33%, and Microsoft (NASDAQ:MSFT) astatine 8.28%. The money holds 310 stocks successful total. It was launched successful 2004. The Vanguard Information Technology ETF has paid $0.43 per stock implicit the trailing 12 months, which connected its caller ~$122.99 stock terms works retired to a 0.4% yield.

The Roundhill Generative AI & Technology ETF takes a much specialized approach, focusing connected the artificial quality scenery with 77% successful exertion and 17% successful connection services. Top holdings see Nvidia astatine 6.43%, Alphabet (NASDAQ:GOOGL) astatine 5.13%, and Broadcom (NASDAQ:AVGO) astatine 4.12%. It maintains a tighter portfolio of 52 holdings and has seen higher assets nether absorption (AUM) maturation recently. It was launched successful 2023. The Roundhill Generative AI & Technology ETF has paid $1.68 per stock implicit the trailing 12 months, which connected its caller ~$93.61 stock terms works retired to a 1.8% yield.