Vanguard (VGT) vs. Roundhill Investments (CHAT): Which Technology ETF Reigns Supreme?
Vanguard (VGT) vs. Roundhill Investments (CHAT): Which Technology ETF Reigns Supreme?
Publish Date: 2026-03-26 14:03:00
Source Domain: www.fool.com
Vanguard Information Technology ETF (VGT 2.43%) keeps costs low and spreads risk across more tech stocks, while Roundhill Investments Generative AI & Technology ETF (CHAT 5.11%) charges more, pays a higher yield, and focuses on a narrower slice of AI-related companies with an ESG overlay.
Both Vanguard Information Technology ETF and Roundhill Investments Generative AI & Technology ETF aim to capture growth in technology, but their approaches differ sharply: VGT tracks the broad U.S. tech sector using a passive, diversified strategy, while CHAT is actively managed and zeroes in on companies leading the generative artificial intelligence wave, with a global and ESG-aware lens. This comparison unpacks the trade-offs between broad tech exposure and a concentrated AI bet.
Snapshot (cost & size)
| Metric | VGT | CHAT |
|---|---|---|
| Issuer | Vanguard | Roundhill Investments |
| Expense ratio | 0.09% | 0.75% |
| 1-yr return (as of 2026-03-25) | 24.7% | 76.5% |
| Dividend yield | 0.42% | 2.62% |
| Beta | 2.08 | 3.10 |
| AUM | $126.5 billion | $1.06 billion |
Beta measures price volatility relative to the S&P 500; it is calculated from monthly returns over one year. The one-year return represents total return over the trailing 12 months.
VGT looks much more affordable for long-term holding with its 0.09% annual expense ratio, as CHAT’s 0.75% fee is considerably higher. CHAT offers a higher dividend yield, which may appeal to those seeking a larger payout from their technology exposure.
Performance & risk comparison
| Metric | VGT | CHAT |
|---|---|---|
| Max drawdown (2 years) | (27.23%) | (31.35%) |
What’s inside
CHAT is actively managed and invests in 52 companies that Roundhill believes are at the forefront of generative artificial intelligence, with a notable tilt toward technology (73%), communication services (19%), and some consumer cyclical exposure (6%). Top holdings include Alphabet, Nvidia, and Minimax Group, and the fund applies an ESG screen. At just under three years old, CHAT gives concentrated access to AI disruptors rather than the broader tech landscape.
VGT, by contrast, passively…
