CHAT vs. SOXX: Which AI ETF Is the Better Buy for Investors Right Now?
Key Points
CHAT charges a higher expense ratio but offers a notably higher dividend yield than SOXX.
CHAT has delivered slightly stronger five-year total returns, but with a higher beta as well.
CHAT’s portfolio includes a broader set of technology names, while SOXX remains tightly focused on U.S. semiconductor stocks.
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The iShares Semiconductor ETF (NASDAQ:SOXX) and the Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) both offer exposure to the tech sector, but with different approaches.
SOXX tracks U.S.-listed semiconductor stocks, offering concentrated exposure to chipmakers. CHAT, on the other hand, is an actively managed fund targeting the broader generative artificial intelligence and technology theme. Here’s how the two funds stack up.
Snapshot (cost & size)
| Metric | SOXX | CHAT |
|---|---|---|
| Issuer | iShares | Roundhill Investments |
| Expense ratio | 0.34% | 0.75% |
| 1-yr return (as of March 2, 2026) | 68.26% | 63.84% |
| Dividend yield | 0.50% | 2.70% |
| Beta (1Y) | 2.66 | 3.10 |
| AUM | $21.0 billion | $1.04 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
CHAT charges more than twice SOXX’s expense ratio, making it less affordable for cost-conscious investors. However, it compensates with a much higher dividend yield, which can be an appealing feature for those seeking income.
Performance & risk comparison
| Metric | SOXX | CHAT |
|---|---|---|
| Max drawdown (1Y) | -41.36% | -31.34% |
| Growth of $1,000 over 2 years | $1,765 | $1,906 |
What's inside
CHAT holds 43 stocks and is designed around the generative artificial intelligence and broader technology theme, with 72% of assets allocated to technology, 20% to communication services, and 7% to consumer cyclical sectors.
Its top holdings are Alphabet, Nvidia, and Microsoft. The fund is actively managed and relatively young, having launched in May 2023.
SOXX, by contrast, is strictly focused on U.S. semiconductor companies, with just 30 holdings and 100% of assets in the technology sector. Its top positions are Micron Technology, Advanced Micro Devices, and Nvidia, concentrating exposure on chipmakers rather than the broader tech ecosystem.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
While both SOXX and CHAT have benefited from the AI boom, they take different approaches to the industry.
SOXX is much narrower, targeting only semiconductor stocks. Semiconductors play a major role in the production of AI technology, making these stocks poised for growth if AI continues to flourish.
CHAT, on the other hand, heavily tilts toward stocks contributing to the advancement of generative AI. While it does include stocks from other branches of the tech industry, it aims to ride the AI boom.
In terms of risk and reward, CHAT has the higher beta, signalling more significant price fluctuations over the last year. It’s also a much younger fund, launched less than three years ago. SOXX, by contrast, was founded in 2001, providing a much longer history of weathering downturns.
The two funds have earned similar one-year total returns, with CHAT slightly outperforming SOXX over the last two years. Regardless of where you buy, it’s wise to keep a long-term outlook, as both of these funds are likely to experience more short-term volatility.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Micron Technology, Microsoft, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
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