Which Is the Better Artificial Intelligence ETF, iShares’ IYW or Roundhill’s CHAT?
Which Is the Better Artificial Intelligence ETF, iShares’ IYW or Roundhill’s CHAT?
Publish Date: 2026-05-15 10:42:00
Source Domain: www.theglobeandmail.com
Certainly! Here are some key points from the article highlighted in an unordered list:
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Dividend Yield and Expense Ratio: The Roundhill Investments Generative AI & Technology ETF offers a significantly higher dividend yield (2.00%) compared to the iShares U.S. Technology ETF (0.10%), but has a double the expense ratio (0.75% vs. 0.38%).
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Fund Size and Age: The iShares U.S. Technology ETF manages $24 billion in assets under management (AUM) and is a well-established fund launched in 2000. The Roundhill Investments ETF is newer, launched in 2023, with $1.6 billion in AUM.
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Performance and Volatility: The Roundhill ETF shows higher total returns (122.61% vs. 51.90% over 1-year) and greater price volatility (higher beta, max drawdown in 2 years) compared to the iShares ETF, indicating a riskier but potentially more rewarding investment.
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Investment Focus: The Roundhill ETF follows a concentrated, thematic approach focusing specifically on generative AI companies with only 52 positions, while the iShares ETF offers broader tech exposure with 139 holdings, including non-AI tech firms.
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Top Holdings: Both funds feature prominent companies in AI and tech sectors, though they differ in concentration levels; the iShares ETF includes more diversified holdings, while the Roundhill ETF is more concentrated on fewer AI-centric firms.
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Active vs. Passive Management: The Roundhill ETF employs active management that suits the fast-evolving AI sector, whereas the iShares ETF follows a passive management approach which typically results in lower costs.
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Risk and Suitability: The Roundhill ETF is better suited for investors looking for highly specialized growth potential in the AI sector, despite higher risk. In contrast, the iShares ETF provides a diversified and lower-cost option better for risk-averse investors.
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Thematic Screening: The Roundhill ETF includes an ESG screen as part of its investment process, which might appeal to certain types of socially conscious investors. The iShares ETF does not have specific thematic screens in its strategy.
