CHAT ETF

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.

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.

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.

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.

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.

Roundhill Generative AI & Technology ETF is focused on a major market theme today. The ETF is not index-based but is actively managed.

Buying an artificial intelligence ETF is a great way to gain exposure to many potential AI winners. This particular fund has climbed in the double digits over the past year.

For investors seeking momentum, Roundhill Generative AI & Technology ETF CHAT is probably on the radar. The fund just hit a 52-week high and is up 49.44% from its 52-week low price of $25.14/share.

The S&P 500 is in a bull market, and a handful of powerhouse technology stocks continues to drive the index higher. Artificial intelligence (AI) is a key ingredient in the success of those technology stocks.