Is the Roundhill Generative AI & Technology ETF a Millionaire Maker?
The whole point of the Roundhill Generative AI & Technology ETF (CHAT -1.62%) is to be aligned with the current artificial intelligence (AI) zeitgeist. However, before you invest in this thematic exchange-traded fund (ETF) expecting it to make you a millionaire, you might want to consider how some previous hot themes on Wall Street have played out.
2 ETFs to Buy in 2025 That Could Help Make You a Fortune
Exchange-traded funds (ETFs) offer the means to quickly and easily gain access to the most promising areas of the stock market. Well-chosen sector ETFs can provide investors with better diversification than individual stocks, but with a greater focus on lucrative investment themes than more broad-based funds.
The Ultimate Artificial Intelligence (AI) ETF to Buy With $50 Right Now
Exchange-traded funds (ETFs) can hold dozens or even hundreds of individual stocks. Some are constructed to track the performance of market indexes like the S&P 500 (^GSPC -0.47%), whereas others are designed to give investors exposure to specific industries like artificial intelligence (AI).
CHAT: Generative AI Stocks Still Look Relatively Attractive
Roundhill Generative AI & Technology ETF (CHAT) has risen by +13.60% since October 2024, outperforming the S&P 500's +5.24% increase. CHAT's diversified tech portfolio includes 47 companies, with top holdings like NVIDIA, Alphabet, Microsoft, and Meta Platforms. Current valuation suggests CHAT is between fair value and "slightly undervalued", with an estimated headline IRR potential of 9.39% to 13.12% per annum.
1 No-Brainer Artificial Intelligence (AI) ETF to Buy With $50 During the S&P 500 Bull Market
The S&P 500 delivered back-to-back annual total returns of over 25% in 2023 and 2024. The only other time that happened in the history of the index (dating back to 1957) was in 1997 and 1998, during the dot-com internet boom.
1 No-Brainer Artificial Intelligence (AI) ETF to Buy With $40 During the S&P 500 Bull Market
The S&P 500 (^GSPC 0.05%) has been soaring this year. It's up 28% with just one month of 2024 remaining, which is more than twice its average annual return since the index was established in 1957.
CHAT: A Surprisingly Undervalued AI Fund
Roundhill Generative AI & Technology ETF invests in leading AI companies like Nvidia, Alphabet, Microsoft, Meta, and AMD, with a balanced 46-stock portfolio. Despite a high expense ratio of 0.75%, CHAT's forward P/E ratio of 20.71x and potential IRR of 14.60% indicate strong growth prospects. CHAT's active management and lack of a benchmark index add uncertainty, but its diversified global exposure and upside beta make it appealing.
Thematic tech ETF investing may have selective use case, experts say
Investing around specific themes such as AI may carry more risk in a long-term portfolio. Here's how experts suggest using the buzzy exchange-traded funds.
Investing in Artificial Intelligence (AI) Stocks Can Be Risky, but Here's a Fantastic Way to Do It
Artificial intelligence (AI) has the potential to add trillions of dollars to the global economy in the coming years. Past technology revolutions have taught us that not every AI company will survive the AI boom.
CHAT: Deja Vu As Selling Intensifies
The CHAT ETF has rallied 20% since mid-July 2023, but faces challenges due to high expense ratio and bearish seasonality. With total assets of $202 million, CHAT has underperformed compared to other tech-related index funds like QQQ and XLK. The chart tells me that a potential false breakout pattern is in play, suggesting downside momentum and a possible test of $31 support level.
1 Artificial Intelligence (AI) ETF to Buy With $40 During the S&P 500 Bull Market
The S&P 500 index is up 18% in 2024 so far, and Nvidia alone is responsible for one-third of that gain. Portfolios without exposure to tech stocks like Nvidia, Microsoft, and Apple have likely underperformed the market.
Is Roundhill Generative AI & Technology ETF a Millionaire Maker?
Roundhill Generative AI & Technology ETF is focused on a major market theme today. The ETF is not index-based but is actively managed.
