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Make the Most of AI Craze With This New ETF (CHAT)

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Artificial intelligence (AI) has emerged as a transformative force in various industries, revolutionizing the way we live and work. Among the many facets of AI, generative AI stands out for its ability to create original and unique data.

Generative AI, fueled by neural networks and complex algorithms, has already made a significant impact in the real world. OpenAI's ChatGPT, for instance, has amassed a staggering 100 million users, becoming the fastest-growing application ever. Its integration into various industries, from creative writing to software development, showcases the practicality and versatility of generative AI.

The success of ChatGPT explains the growth for AI’s potential. As a result, Roundhill Investments launched a new ETF on AI, namely, Generative AI & Technology ETF (CHAT - Free Report) .

Inside CHAT

The Roundhill Generative AI ETF (CHAT - Free Report) is an actively-managed ETF that looks to provide exposure to companies around the globe involved in generative AI and related technologies.

CHAT's top holdings at launch include: Nvidia (7.8% weight), Microsoft (7.6% weight), Alphabet (7.2% weight), Baidu (5.4% weight), iFLYTEK (5.0% weight), Adobe (4.9% weight), AMD (4.9% weight), SenseTime Group (4.7% weight), (4.5% weight) and Salesforce (3.6% weight).

How Does It Fit In a Portfolio?

Generative AI sets itself apart from other AI techniques by its unique ability to generate original and unique data, closely resembling existing data in structure and format. By learning patterns and relationships within extensive datasets, generative AI enables businesses to innovate and excel across various domains by generating fresh content and ideas.

According to the proprietary research, the enterprise generative AI software market holds a total addressable market value of approximately $120 billion, per Roundhill Investments. This figure underscores the substantial opportunities for growth and investment in this sector.

Additionally, renowned financial institution Goldman Sachs predicts that artificial intelligence as a whole could drive a remarkable $7 trillion in global economic growth within the next seven years. Such growth will be fueled by the accelerated productivity gains resulting from AI's widespread adoption.

Artificial intelligence can transform the productivity and GDP potential of the global economy, per a PWC article. PWC’s research reveals that 45% of total economic gains by 2030 will come from product enhancements, boosting consumer demand.

This will be possible because AI will bring about product variety, with increased personalization and affordability. The maximum economic benefit from AI will be in China (26% boost to GDP in 2030) and North America (14.5% boost), per PWC (read: Guide to Artificial Intelligence ETFs).


There are a few products on AI available in this field. These products are AI Powered Equity ETF (AIEQ - Free Report) , The ROBO Global Robotics and Automation Index ETF (ROBO - Free Report) , The Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) and First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report) . However, all these products are not purely-exposed to generative AI. From that angle, CHAT offers quite a unique concept.

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